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Development of a Pricing and Costing Engine for Logistics SaaS Platform

8allocate.com

Logistics

Information technology

SaaS

Challenges in Logistics Pricing and Cost Management

Logistics companies face inefficiencies due to manual pricing calculations, fragmented systems for discounts, promotions, and commissions, leading to increased operational costs and delayed decision-making. Existing workflows require multiple software tools for price adjustments, tax calculations, and demand-based pricing, creating operational complexity.

About the Client

Enterprise SaaS platform providing logistics solutions, specializing in shipment automation and supply chain optimization.

Objectives for Pricing and Costing Engine Development

Centralize all pricing management into a single unified platform
Automate complex price calculations with minimal manual intervention
Enable real-time price adjustments based on supply-demand dynamics
Eliminate human error in discount and commission calculations
Implement a reliable tax calculation module for global compliance

Core Functionalities and Key Features

Rule-based pricing configuration for shipment cost calculation
Dynamic pricing adjustments using real-time market data
Automated discount, promotion, and commission management
Multi-currency and multi-jurisdiction tax calculation engine
Microservice architecture for seamless integration with existing SaaS modules

Technology Stack

Ruby on Rails

AWS

Sidekiq

React

System Integrations

Dispatch Management System
Order Management System
Shipment Processing Module
Third-party logistics APIs

Non-Functional Requirements

High scalability to handle concurrent pricing calculations
Data security for sensitive pricing rules and client information
Low-latency response for real-time pricing updates
Fault-tolerant architecture for uninterrupted operations

Expected Business Impact

Implementation of the Pricing and Costing Engine will reduce manual operational overhead by 70%, enable dynamic pricing strategies aligned with market conditions, and improve profit margins through automated tax compliance and error-free calculations. Logistics providers will achieve faster decision-making and enhanced competitiveness in global markets.