Expand Your Demand Shaping Capabilities

With River Logic

Optimize discounts and trade promotion decisions

Access Opportunity Values™ (with the net marginal profitability from selling an additional unit of the product) to provide prescriptive solutions to shape demand

Evaluate trade-offs between customer service, inventory and capacity, including decisions to allocate demand shortages based on corporate metrics.

Forecast the impact of pricing, promotions, and specific customer deals as part of demand analytics

Cox Industries Wins with Prescriptive Analytics

Explore the Value Add

Of Adopting River Logic

River Logic adopts what-if analysis and price/revenue optimization methods as two different approaches to help organizations move beyond traditional demand manipulation. Both approaches are useful and answer different questions.

What-if analysis allows users to evaluate alternative strategies and policies to maximize their revenue and profit performance while considering risks and supply chain constraints

  • Typically, demand options are developed by running an econometric model. Those demand options are then used in an optimization model to determine proper resource allocation.
  • This means that what-if analysis focuses on the ability of the supply organization to support the presented demand, which is a resource allocation problem. It answers questions such as, “Can we fill this order?”

In the price and revenue optimization approach the demand dynamics are ran through an optimization model instead. This means that a price and revenue approach focuses on the ability of the supply organization to change demand. This method goes one step further than what-if analysis and allows organizations to answer two very important questions: “Can we satisfy this order?” and most important, “Should we accept this order?”

With this knowledge, organizations can give themselves a competitive advantage while maximizing revenue and profit.

River Logic Demonstration

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