Convoy Case Studies CONVOY Shipper Story: Dynamic Rates For A Dynamic Network

Edit This Case Study Record

	CONVOY Shipper Story: Dynamic Rates For A Dynamic Network Convoy

CONVOY Shipper Story: Dynamic Rates For A Dynamic Network

Convoy

Technology Category	Platform as a Service (PaaS) - Connectivity Platforms
Applicable Industries	Equipment & Machinery
Applicable Functions	Logistics & Transportation
Use Cases	Fleet Management Supply Chain Visibility
Services	System Integration
Challenge	A multinational industrial goods company faced challenges in delivering supply chain products to their customers, often within 24 hours’ notice. The volume, timing, and destination of these products were often unpredictable. The company also had to retrieve the products from their customers’ locations and then dynamically route them to servicing centers, stocking locations, or other customers’ operations. Traditional RFPs were not suitable for their operations due to the unpredictable volume requirements and lane pairings. Turning to the spot market for thousands of loads was unsustainable in the long run, requiring immense administrative effort and cost. Read More
About Customer	The customer is a multinational industrial goods company that provides supply chain products and services critical to the business operations of leading manufacturers and retailers worldwide. The company operates a complex supply chain, often needing to deliver products to their customers within 24 hours’ notice. The volume, timing, and destination of these products are often unpredictable. The company also retrieves the products from their customers’ locations and dynamically routes them to servicing centers, stocking locations, or other customers’ operations. Read More
Solution	The company enabled Convoy’s Dynamic Backup API in their transportation management system (TMS). This provided access to instant, elastic capacity at competitive market rates in their routing guide without leaving their TMS and turning to cumbersome spot auctions. As soon as shipments were added to their system, the company could get an instant quote, lock in the price, and snap up a truck. Instant coverage was always one click away as soon as they knew their dedicated and contract carriers couldn’t accept additional loads. Rates for known and new lanes were readily available, eliminating the hassle of contacting and waiting on multiple carriers for contract or spot rates. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms

Applicable Industries

Equipment & Machinery

Applicable Functions

Logistics & Transportation

Use Cases

Fleet Management

Supply Chain Visibility

Services

System Integration

Challenge

A multinational industrial goods company faced challenges in delivering supply chain products to their customers, often within 24 hours’ notice. The volume, timing, and destination of these products were often unpredictable. The company also had to retrieve the products from their customers’ locations and then dynamically route them to servicing centers, stocking locations, or other customers’ operations. Traditional RFPs were not suitable for their operations due to the unpredictable volume requirements and lane pairings. Turning to the spot market for thousands of loads was unsustainable in the long run, requiring immense administrative effort and cost.

About Customer

The customer is a multinational industrial goods company that provides supply chain products and services critical to the business operations of leading manufacturers and retailers worldwide. The company operates a complex supply chain, often needing to deliver products to their customers within 24 hours’ notice. The volume, timing, and destination of these products are often unpredictable. The company also retrieves the products from their customers’ locations and dynamically routes them to servicing centers, stocking locations, or other customers’ operations.

Solution

The company enabled Convoy’s Dynamic Backup API in their transportation management system (TMS). This provided access to instant, elastic capacity at competitive market rates in their routing guide without leaving their TMS and turning to cumbersome spot auctions. As soon as shipments were added to their system, the company could get an instant quote, lock in the price, and snap up a truck. Instant coverage was always one click away as soon as they knew their dedicated and contract carriers couldn’t accept additional loads. Rates for known and new lanes were readily available, eliminating the hassle of contacting and waiting on multiple carriers for contract or spot rates.

Impact #1	The company was able to meet their spiky demand during seasonal and holiday surges, plus flex up to three times their average weekly capacity during surges.
Impact #2	The company was able to secure backup coverage—when and where they need it—at competitive rates they wouldn’t be able to find elsewhere.
Impact #3	Rates are delivered directly to their TMS and come with a 100% tender acceptance guarantee across all market conditions.

Impact #1

The company was able to meet their spiky demand during seasonal and holiday surges, plus flex up to three times their average weekly capacity during surges.

Impact #2

The company was able to secure backup coverage—when and where they need it—at competitive rates they wouldn’t be able to find elsewhere.

Impact #3

Rates are delivered directly to their TMS and come with a 100% tender acceptance guarantee across all market conditions.

Benefit #1	More than 40,000 of the company’s loads have been successfully picked up and delivered through Convoy Dynamic Backup since January 2021.
Benefit #2	By enabling Convoy Dynamic Backup, the company was able to save an estimated $400,000 since the U.S. full truckload (FTL) market started softening in early 2022.
Benefit #3	Transportation teams also saved thousands of operational hours waiting for and negotiating rates for time sensitive and business-critical freight operations.

Benefit #1

More than 40,000 of the company’s loads have been successfully picked up and delivered through Convoy Dynamic Backup since January 2021.

Benefit #2

By enabling Convoy Dynamic Backup, the company was able to save an estimated $400,000 since the U.S. full truckload (FTL) market started softening in early 2022.

Benefit #3

Transportation teams also saved thousands of operational hours waiting for and negotiating rates for time sensitive and business-critical freight operations.

Download PDF Version

Overview

CONVOY Shipper Story: Dynamic Rates For A Dynamic Network

Operational Impact

Quantitative Benefit