Castore Cuts Pricing Execution from Five Hours to Minutes on 35 Shopify Stores

The Challenge of Pricing Execution

Fast-growing retailers like Castore are under constant pressure to optimize their pricing strategies, especially during peak trading periods. The brand’s reliance on manual processes for pricing execution not only consumed valuable time but also introduced significant risks in terms of accuracy and operational efficiency.

Historically, Castore’s pricing data was managed through cumbersome methods involving spreadsheets and SharePoint. Each evening, team members would manually import pricing data using CSV uploads, a process that typically took six to seven hours. This manual intervention often resulted in pricing error rates of 30 to 35 percent, which the team had come to accept as a necessary cost of doing business.

Operational Strain and Risks

The manual nature of pricing execution created operational fatigue among team members and limited the organization’s ability to scale effectively. The reliance on a small group of individuals working late into the night to manage these processes posed a risk to the overall stability of the business.

As Andy Richley, Head of Tech at Castore, noted, “We were in a place where a 30 to 35 percent error rate was considered acceptable simply because the process was so long and so manual.” This situation highlighted the need for a more efficient and reliable approach to pricing execution.

Why ERP-Led Pricing Execution Could Not Scale

At the core of Castore’s challenges was the way their Enterprise Resource Planning (ERP) system was utilized. While the ERP served as a central repository for pricing data, it was not designed to handle the high volume of execution tasks required during peak trading periods. This led to significant strain on the system, with sustained loads pushing API concurrency beyond safe thresholds.

Richley explained, “What became clear was that we were using a system of record as an execution engine simply because it was there.” This misalignment of system capabilities and operational needs created cracks in the overall process, particularly during high-demand periods.

Rethinking Pricing Data Flow

Recognizing the limitations of their existing setup, Castore sought to rethink how pricing data flowed through their retail architecture. By separating pricing governance from pricing execution, they aimed to enhance the overall efficiency of their operations.

To achieve this, Castore partnered with Patchworks, a retail-first integration platform as a service (iPaaS). This collaboration allowed them to streamline their pricing execution process, moving high-volume data movement and orchestration away from their core systems.

Implementing the Solution

Once the new pricing execution approach was conceptualized, the implementation process was remarkably swift. The workflow was designed, tested, and deployed in under two weeks, thanks to Patchworks’ low-code, no-code capabilities. This speed of deployment minimized the need for bespoke development and lengthy change cycles, allowing Castore to quickly adapt to their new operational model.

Measurable Gains During Peak Trading

The results of this strategic shift were immediate and impressive. Pricing execution times were slashed from approximately five hours to just two to three minutes, with worst-case scenarios extending to only 6.5 minutes during peak periods. Moreover, pricing error rates plummeted from 30 to 35 percent down to an impressive 1 to 2 percent, with several zero-error days achieved during peak trading.

Operational stability was also enhanced, with no emergency license expansions required during busy periods. The formal approval workflows established through the new system significantly reduced the risk of pricing fraud and minimized customer service issues stemming from mispriced promotions.

Shifting Focus from Execution to Oversight

With the elimination of manual overnight pricing work, Castore’s data and eCommerce teams were able to shift their focus from execution to oversight. This transition allowed them to engage in proactive management of their pricing strategies rather than reactive firefighting during crises.

Richley remarked, “What surprised me was just how straightforward it became. Once the data was prepared properly and approved upstream, Patchworks moved it into Shopify incredibly fast. That was the moment we knew we had the right execution layer.” This newfound efficiency not only improved operational performance but also fostered a culture of confidence within the organization.

Strategic Insights for Other Retailers

Castore’s experience offers valuable insights for other retailers facing similar challenges in pricing execution. Here are some actionable strategies that can be derived from their success:

• Integrate with a retail-first iPaaS to streamline data workflows and enhance execution capabilities.
• Separate pricing governance from execution to reduce operational strain on core systems.
• Automate manual processes to minimize errors and improve accuracy during peak trading.
• Implement formal approval workflows to mitigate risks associated with pricing fraud.
• Focus on rapid deployment and adaptability to respond effectively to changing market conditions.

Frequently Asked Questions

Note: The strategic improvements made by Castore highlight the long-term business impact of efficient pricing execution and the importance of leveraging technology to enhance operational capabilities.