Less reactive, more predictive: through simulation and optimization, project market movements with Aprix AI. Optimize price analyses automatically and maximize operating results.
Main advantages
Aprix’s artificial intelligence technology uses dynamic forecasting models that learn patterns by cross-referencing historical data and new decisions, allowing for the simulation and optimization of increasingly accurate scenarios.
Principais vantagens
A tecnologia de inteligência artificial da Aprix utiliza modelos de previsão dinâmicos, que aprendem padrões a partir do cruzamento de dados históricos e de novas decisões, permitindo a simulação de cenários cada vez mais precisos.
It’s common for pricing teams not to know how to operationalize their objectives efficiently with the tools they have. With Aprix software, the pricing team can simulate scenarios with AI technology before they happen. This helps them answer key questions and achieve the desired objectives. See how the functionalities of the Aprix system turn these challenges into opportunities for your company:
Poor understanding of demand's reaction to price changes
It is common for companies to have some kind of sales forecast, but often these forecasts are basic or statistically incoherent, with very low accuracy rates. In addition, forecasting sales performance associated with new prices is a complex challenge, as it presupposes a deep understanding of the behavior of demand associated with price changes, or the behavior of that demand. In practice, this implies decisions based on subjective perceptions of the market.
Calculating price elasticity with AI
To generate sales forecasts, the simulation and optimization module uses artificial intelligence to statistically model historical customer demand by calculating direct and cross price elasticities of demand. These models can take into account other market variables, such as competitors’ prices and variations in input costs. In addition, all projections are constantly checked against the results obtained, ensuring that the models are improved with each new round of pricing.
Difficulty in estimating the impact of decisions
It is common for companies to make pricing decisions without knowing the real extent of the impact on operational results. In this sense, you later find out whether it was a good pricing decision or not, by observing the results of the movement. The negative impact on the operating margin becomes irreversible in this context.
Simulation of price scenarios
The Simulation and Optimization module allows you to simulate pricing decisions through scenarios on the platform, projecting the impact on the company’s P&L based on elasticity models, that is, statistical demand forecast calculations.
This enables accurate predictive analysis of the financial consequences of pricing strategies, facilitating informed decision-making and maximizing financial results.
Complexity of Decision-Making at Scale
Even with highly analytical teams, manually analyzing the portfolio of a large company—with hundreds of thousands of prices to be set across multiple regions, channels, and categories—is humanly impossible.
To enable and simplify the pricing process companies establish pricing rules. However, these rules fail to capture all available opportunities, as they do not allow for a truly granular decision-making process, leaving value on the table.
Intelligent Price Decision Optimization
The Simulation and Optimization module optimizes pricing decisions by considering market conditions and established business rules, aiming to maximize profit and/or sales volume.
This process is entirely guided by business objectives set by system users. These inputs act as both constraints and targets for optimization. The result is a price list that best aligns with the user-defined scenario, optimized efficiently through Artificial Intelligence.
Make the pricing decisions that maximize your profitability
Contact our team and find out how to simulate customized scenarios to achieve your results.
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