UPS is setting a new standard in the logistics and delivery sector with its integration of artificial intelligence into its pricing strategy. Through the use of Zilliant’s AI-powered platform, United Parcel Service (UPS) is optimizing pricing, improving sales team efficiency, and driving greater revenue, making a significant impact on its business operations globally.
Driving More Conversions With AI-Powered Pricing
UPS, a global leader in logistics, has long been a company known for its expansive network and innovative solutions. Recently, the company has added another layer of sophistication to its operations by turning to artificial intelligence (AI) to revamp its pricing strategy.
The company’s decision to partner with Zilliant, a leading provider of AI-based pricing solutions, has unlocked new potential for growth by creating smarter, data-driven pricing models that enable UPS to offer the right price to the right customer at the right time.
Historically, pricing decisions at UPS were reliant on manual processes, often influenced by the discretion of individual sales reps. With the introduction of Zilliant’s Precision Pricing Platform, the company has now transformed this process into a dynamic, AI-powered system that leverages vast amounts of historical data and machine learning.
By enabling real-time, data-backed decisions, UPS has seen a marked improvement in its win rate. In fact, CEO Carol B. Tome revealed in a 2022 earnings call that the use of their “Deal Manager” platform resulted in a 22-percentage-point increase in their U.S. win rate—a clear indicator of improved pricing strategies and more successful sales conversions.
The Role of Data and Integration in the Pricing Revolution
One of the key reasons for the success of this pricing transformation lies in the high-quality data that powers it. As Ryan Neal, UPS’s pricing transformation director, noted, getting the right data was critical to ensuring the success of the AI platform.
This involved refining internal data sources and establishing reliable data feeds that would feed into Zilliant’s pricing algorithms. UPS worked closely with PwC and Zilliant to ensure that the data quality was up to par before fully launching the solution.
The integration of Zilliant’s platform with UPS’s existing systems, including Salesforce and Tableau, has created a seamless pricing workflow across the organization. This integration allows for an end-to-end solution where pricing, customer relationship management, analytics, and billing are connected, ensuring that the entire pricing process is as efficient and accurate as possible.
By leveraging both AI and integrated technologies, UPS has been able to align its pricing strategies with real-time market conditions, ultimately driving better business outcomes. The platform’s dynamic nature allows UPS to adapt quickly to changes in the market, improving its ability to respond to competitive pressures and customer demands.
What’s Next for UPS: Advancing Dynamic Pricing
Looking ahead, UPS’s experience provides valuable insights for other companies in the logistics and supply chain industry considering a similar shift toward dynamic pricing. The integration of AI into pricing is clearly an advantage in a competitive marketplace, enabling businesses to optimize margins, close deals faster, and drive growth.
For companies considering AI in pricing, the takeaways are clear: ensure high-quality data, integrate systems seamlessly, and be prepared to manage expectations throughout the process. While AI is a powerful tool, it is still essential to blend technology with human insight to get the best results. As UPS continues to refine its pricing strategy, its experience will likely serve as a model for other businesses looking to harness the power of AI for operational success.
