Blue Yonder, the company born out of CERN, is targeting optimum pricing for eCommerce retailers.
The company’s Forward Pricing product will apply machine learning algorithms to thousands of automated daily price updates.
The SaaS package can monitor internal data such as sales history and external data such as the weather and competitor pricing. The goal of this is to find the optimal price for any product.
It is designed to analyse interactions between the price change and subsequent changes in demand, so instead of manually tracking, measuring and altering pricing it can all be done automatically with this system.
Jan Karstens, CTO at Blue Yonder said: "Retail has become an ultra-competitive business and consumer behaviour is rapidly changing due to a multitude of factors. This makes it difficult to develop an effective pricing strategy with gut-feel and manual adjustments alone.
"Most companies lack the software to approach pricing strategically and automatically, instead relying on a number of methods that have limited value. These include cost plus pricing; competition minus pricing; odd pricing (99p) and time-based discounting."
The product will automatically start to experiment, tune and optimize data once it is sent to it. It will be managed by a team of Blue Yonder’s data scientists.
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