Case Study: Leading Distributor of Specialist Building Products in Europe achieves smarter pricing and margin optimization with SoftServe

Machine learning smart price Calculator solves pricing challenges

Leading Distributor of Specialist Building Products in Europe partnered with SoftServe to address pricing challenges created by its multi-country, acquisition-driven operating model. With multiple standalone ERP and CPQ processes and little standardization across the UK, Ireland, Mainland Europe, France, and Germany, the company relied heavily on gut instinct to set prices, which often led to low or negative margins.

SoftServe developed a Smart Price Calculator using machine learning and a R/Shiny-based prototype, supported by XGBoost, Python, Docker, and Azure/SQL Server tools. The solution aggregated and cleaned transaction data, enabled price recommendations by customer, branch, product, and quantity, added demand prediction, and visualized price breakdowns, competitor adjustments, rebates, and historical marginality. The POC validated the approach and provided the foundation for the client’s MVP pricing product development.