Delivering margin and revenue uplifts with B2B Price Optimization

In 2021 the business experienced rising costs in shipping and raw materials following the the Covid pandemic and new anti-dumping duties on imports of stainless-steel products to the EU.  The business needed to increase prices across its entire product portfolio, and wanted to take this opportunity to change the pricing framework so that in future they could be more responsive to market conditions, especially for their long tail/ slow rotating portfolio.

We developed an AI-powered pricing engine to calculate optimal prices for each individual product in their portfolio, with tools to model out changes in input costs and other external factors and how they impact demand and margin. In addition to streamlining and automating much of the pricing process, the new solution enabled Fabory to optimise margins more efficiently according to product-specific criteria like sales volume and market availability. With over 5 million SKUs, this is only possible at a granular level by leveraging AI and machine learning techniques.

Fabory piloted its intelligent pricing engine across its full product portfolio for Belgium and The Netherlands. The business was able to increase prices across the portfolio without eroding volumes, resulting in a margin uplift of €8M.