| Customers: Evraz Market Taganrog; Metallurgical industry Contractors: Reshape Analytics Product: LoginomProject date: 2025/04 - 2025/09
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2025: Implementation of Dynamic Pricing System
In September 2025, Loginom Company shared the results of a project to create a dynamic pricing system on the Loginom platform for the Evraz Market metal trading company. Within the framework of the project, many rules for creating a discount when increasing the speed of pricing have been implemented.
Project prerequisites
As reported, there are a number of features in the field of metal trading. Metal production cannot be quickly increased for a specific customer, and prompt delivery from other regions is economically unprofitable. Therefore, EVRAZ builds reserves for sale and strives to sell them as profitably as possible.
Demand for the metal is unstable and subject to wave fluctuations. For many Evraz Market customers, it is a common practice to buy after a discount, but the current procedure for agreeing discounts did not suit management.
Perspective
Management highlighted the main problem - poor manageability of the pricing process. Exceeding the allowable discount level was seen as a decrease in profit. When selling metal for large amounts, even a slight overstatement of the discount could lead to significant financial losses.
Project objectives
The main goal of the project was to establish confident management of the price formation process. To do this, it was necessary:
- Automate the discount negotiation process
- Synchronize central and branch office databases
- Create Dynamic Pricing System
- Ensure prompt response to price waves
Technical requirements
The first requirement was to eliminate the situation when EVRAZ Market management does not manage the process of forming a discount, but learns about lost profits as a fait accompli.
Critical requirements were:
- Enhance the order criteria to be considered in price determination
- Prompt response to price waves
- Pricing taking into account the peculiarities of the order and the customer
- Operational testing of marketing hypotheses
One of the tasks set by EVRAZ Market management is to give marketers a quick experiment tool. So fast that the experiment and decision-making on it fit into the deadlines of one price wave. The speed of calculations in all operations was critical: the solution must quickly respond to requests, rapidly process large amounts of data.
Implementation of the solution
After load tests of various platforms, EVRAZ IT specialists chose the Loginom platform. The system was developed and implemented by Reshape Analytics.
The general structure of the solution is shown in the figure. The Dynamic Pricing System included 3 units made on the Loginom platform: the ETL unit, the calculation unit and the service unit. Inside them there was a transformation and enrichment, data calculations. The data sources were the Excel library 1C and tables of the user departments of the System. Also included in the System, database PostgreSQL which carried out storage basic reference books, sets of rules and buildings, as well as logging.
The dynamic pricing system included 3 blocks:
- ETL Block - extracting, transforming and loading data from 1C and Excel-. files The master system for the unit is 1C. Data exchange between systems takes place automatically. Excel files are also used.
- The calculation block is the main settlement module of the system. The main block of the Dynamic Pricing System, where all calculations take place. EVRAZ and Reshape Analytics note the following solution capabilities: speed, modularity and scalability. The speed of calculations on the Loginom platform made it possible to minimize the calculation time.
- Service Block - Simplifies end-user service. A request for a service block appeared during the implementation of the project. The task for which it was created is to simplify the service of end users by the EVRAZ service service. The block allows you to quickly answer the questions: "why did the price pay this way?," "Is the price calculated correctly for a specific order?," Etc.
Service unit functions:
- Unload rules and configure rules for reconciliation, without directly interacting with the database.
- Check the calculations performed for a specific order.
- Check the price for a specific item.
- Purge tables with rules (current, deferred, all).
- Small settings.
These functions are implemented by standard Loginom tools. The minimum necessary actions: set the desired variable, start some process.
Key results
A dynamic pricing system has been built that solves all tasks with minimal human involvement.
The main properties of the system are:
- Modularity - Upgrade by Loginom users
- Ease of Use - A Clear Framework for Sales Experts
- Scalability - Easily Connect New Users
- Performance - Average Request Processing Time 0.3 s
- Experiment Capability - Quickly Test and Scale Solutions
