Summary
A mid-sized third-party logistics (3PL) provider, managing over 150,000 shipments per month, faced a major pricing disruption when their primary carrier shifted from deadweight to volumetric-based pricing. To manage risk and retain trust across hundreds of accounts, the 3PL turned to Dyspach’s simulator. They quickly analysed how the change would affect each customer and pushed personalised impact reports into a branded customer portal—giving clients full visibility and a seamless path to accept new terms.
Challenges
The pricing shift introduced unpredictable swings in costs by factoring in volumetric weight rather than just deadweight. Each of the 3PL’s customers operated under unique pricing models—some cost-plus, others on custom margins—making it impossible to standardise a response. They needed to simulate the impact using three months of shipment data and deliver tailored results to hundreds of clients, all under tight time pressure and with total accuracy.
Alternatives
Initially, the internal team attempted a manual approach using spreadsheets and ad hoc reporting tools. But margin complexity, data volume, and variability in rate logic quickly overwhelmed the process. Not only was it slow and error-prone—it lacked the professionalism and transparency needed to reassure customers during a high-stakes pricing change.
Solution
The 3PL implemented Dyspach’s simulator to analyse and model the pricing change at scale. By uploading historical shipment data and configuring both old and proposed rate cards—plus individualised margin structures—they could automatically generate per-customer cost comparisons. Dyspach modelled how each account’s margins would be impacted and produced output that was structured for immediate communication.
Implementation
Dyspach was live within days. The 3PL uploaded shipment history, layered in customer-specific margins, and validated the simulation logic against both rate models. Critically, Dyspach’s output wasn’t just used internally—it was pushed directly into each customer’s branded portal. Customers logged in to view a detailed impact analysis specific to their business, see cost projections under the new pricing model, and accept the revised rates with a single click—and sign electronically.
Results
This proactive and transparent rollout defused what could have been a churn event. Customers appreciated seeing the numbers for themselves, in a portal that felt custom-built for them. Over 75% of clients provided positive feedback, and not a single key account was lost during the transition. What previously would’ve taken weeks of analyst time was completed in less than 48 hours—with zero manual back-and-forth needed to share the findings.
What's next?
The 3PL now plans to use Dyspach for ongoing pricing management—embedding simulations into quarterly reviews, new contract negotiations, and continuous margin tracking. By giving customers self-service visibility into pricing, they’ve turned what used to be a reactive function into a proactive, strategic advantage.
Published on May 26, 2025 • Case Studies