How a CPQ solution and centralized pricing help logistics service providers sustainably increase margins

Andreas Feuerbach,

CEO & Founder, Chironex Consulting

Introduction

Many logistics service providers face the same challenge: fluctuating margins, unclear pricing structures, and error-prone quotation processes. Quotations are often created decentrally, prices vary between locations or customers, and there is a lack of transparency to respond quickly to market changes.

A solution that is already established in many industries can also significantly ease the burden on logistics providers: CPQ (Configure, Price, Quote) systems combined with centralized pricing. In this article, we show how these systems secure margins, simplify processes, and provide decision-makers with a clear overview.

The Challenges of Logistics Pricing

Pricing in logistics is complex. Many providers operate decentrally: Each branch or sales department creates its own quotations, often based on outdated price lists or manual calculations.

The consequences are clear:

Inconsistent pricing: Customers receive different quotations for the same service.
Prone to errors: Manual calculations lead to incorrect prices or margin losses.
Loss of transparency: Management and controlling lack real-time visibility into margins and profitability.

Furthermore, manual quotation creation costs time and resources. Quotations are delayed, decision-making processes become slower, and competitiveness suffers.

CPQ systems as a solution

A CPQ solution (Configure, Price, Quote) system standardizes the quotation process and automates pricing. For logistics providers, this means:

Standardized quotations: Each branch can create quotations according to the same guidelines.

Automatic margin calculation: Margins are calculated and displayed in real time, virtually eliminating errors.

Rapid price adjustments: Prices can be flexibly adjusted to market conditions without each unit having to do its own calculations.

Forecasting win probability: Advanced CPQ systems can provide predictive analytics, estimating the likelihood of winning a quotation based on historical data, customer behavior, and market trends.

Centralization of Pricing

Centralized pricing control brings additional benefits:

Uniform pricing strategy: All locations and sales representatives work with the same prices and rules.

Rapid response to market changes: Price changes are approved centrally and take effect immediately.

Reduced error rate: Duplicated work and unintentional price variances are eliminated.

CPQ systems are key to effectively implementing this centralized pricing control. Without an automation system, centralized control would require excessive manual effort and lose flexibility.

Results & Benefits

The combination of CPQ and centralized pricing delivers tangible results:

Higher margins on every order
More efficient quoting processes
Real-time transparency for management and controlling
Reduction of errors and administrative effort

Checklist for logistics providers who want to get started:

Analyze current pricing processes and identify weak points
Define central pricing guidelines
Select and implement a suitable CPQ system
Train employees and integrate into existing workflows
Continuous optimization and monitoring of margins

Conclusion

Logistics providers who want to optimize their pricing should consider CPQ systems in combination with centralized pricing. These tools not only ensure higher margins, but also more efficient processes, fewer errors, and greater transparency.

If you would like to know how a CPQ system with centralized pricing can sustainably improve your margins, please contact me for a free assessment or consultation.