AI \ Case Study \ Futurism Develops AI/ML-Driven Price Prediction Engine for Transportation and Logistics Leader

Growth of eCommerce Company

The client is a Fortune 500 transportation and logistics company with a vast fleet of tens of thousands of trailers and containers that facilitate millions of annual deliveries. The client approached us to help them predict accurate market prices using AI and ML solutions that would allow them to negotiate better in the spot market broking business, resulting in optimal margins and increased profitability.

Challenges Faced by the Client.

The client often encountered challenges such as over-paying carriers or losing business from shippers due to inaccurate predictions of the market price. The client's existing market price prediction model suffered from high error rates, which affected their bid-win rate and margins. Therefore, the client sought to predict the optimal market price that paid the carriers the right cost and won the load from the shipper with an optimal margin.


Our objective was to develop an AI/ML solution that could predict the market price with an accuracy rate of over 90%, helping the client arrive at the best carrier cost and shipper price, leading to optimal margins. The client also aimed to increase the bid-win rate from 1% and to procure better carrier costs, considering lane and load attributes, while offering better shipping prices to boost gross margins per employee.


Futurism developed a novel dynamic pricing model powered by AI/ML to help predict the market price that gave maximum margin using cognition and hyper-automation. We utilized an advanced ensemble-based machine learning approach with multiple models implemented across lanes and considered relevant features. We leveraged the power of AI to reduce manual effort and time consumed in determining the market price. The solution was hosted on cloud, and the entire pipeline was automated, from extracting data from legacy systems, data quality, transformation and loading, feature engineering, modeling, to integrating with the consuming systems.


Futurism's solution predicted the carrier cost with an accuracy greater than 90%, leading to the following benefits:

  • $19M annual savings with a 12% increase in prediction accuracy
  • Bid-win rate increased from 1% to 3%
  • Increased Gross Margin per Employee per Day (GMED) from $200 to $900 using cognition and hyper-automation

Results Achieved

200% Business Growth

The AI-driven personalization, coupled with effective inventory management and improved customer support, contributed to a 200% increase in online sales and revenue over 18 months

Enhanced Customer Satisfaction

The AI-powered customer support chatbot led to faster response times and more accurate issue resolution, resulting in a 35% increase in customer satisfaction ratings.

Reduced Stock-outs

The AI-based inventory management system helped the client reduce stock-outs by 60%, minimizing lost sales opportunities and improving overall operational efficiency.

Improved Customer Retention

By delivering a more personalized and seamless customer experience, the client saw a 40% increase in customer retention rates.

By using AI/ML-driven price prediction, the transportation and logistics leader could negotiate better in the spot market broking business, leading to optimal margins, and increased profitability. The accuracy of market price prediction, bid-win rate, and GMED improved significantly, leading to millions of dollars in annual savings.


Case Studies


ChatGPT and GenAI Revolution: Transforming the Future of Business

March 6, 2023

As Artificial Intelligence (AI) continues to advance at a rapid pace, it’s no wonder that businesses are turning to Generative AI aka GenAI solutions...

Read More
AI in Healthcare: Transforming Care Experience

January 3, 2023

Healthcare is one of the major sectors that has witnessed a steep rise in the demand of technological advancement...

Read More
AIoT: When AI Meets IoT

December 11, 2022

The Internet of Things aka IoT is creating a treasure chest of big data. The data can assist businesses to predict incidents...

Read More

Let's Talk About Your Needs

Make your business more successful with latest tips and updates for technologies