Convoy Case Studies CONVOY Shipper Story: Taming tough lanes and saving on costs with a Fortune 50 retailer

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	CONVOY Shipper Story: Taming tough lanes and saving on costs with a Fortune 50 retailer Convoy

CONVOY Shipper Story: Taming tough lanes and saving on costs with a Fortune 50 retailer

Convoy

Technology Category	Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries	Retail
Applicable Functions	Logistics & Transportation
Use Cases	Fleet Management Supply Chain Visibility
Services	System Integration
Challenge	The Fortune 50 general retailer, with nearly 50 supply chain facilities and 2,000 stores across the United States, was facing challenges in optimizing and innovating their freight operations across vendor to distribution center routes. The retailer was experiencing waves of canceled shipments due to a spike in freight demand in 2021. Many carriers were unable to fulfill the increasing volumes well above committed contract volumes, leading to increased volume hitting the spot market. This resulted in underperforming lanes that remained business critical, but drove up operating costs. Reliable capacity was needed to support peak retail seasons. Read More
About Customer	The customer is a Fortune 50 general retailer with nearly 50 supply chain facilities and 2,000 stores across the United States. The retailer is continuously seeking ways to optimize and innovate their freight operations across vendor to distribution center routes. The retailer's operations teams found themselves facing waves of canceled shipments as demand for freight spiked in 2021. Goods were flying off shelves, including consumer favorites that were high-visibility and high-volume. Many carriers were unable to fulfill spiking volumes well above committed contract volumes. Increased volume hit the spot market as a result. Underperforming lanes remained business critical, but drove up operating costs, and reliable capacity was needed to support peak retail seasons. Read More
Solution	Convoy, which was already delivering 100% of contracted volume with the retailer, was chosen to pilot the Guaranteed Primary program when spikes in volume required even more flexible and reliable capacity. During the pilot, Convoy guaranteed 100% tender acceptance at a fixed 10% margin across 7 out of 26 existing primary lanes. These lanes were experiencing high volume spikes and load cancellations/ tender rejections. Estimated savings through Guaranteed Primary rates were estimated at $1.6 million when compared to standard RFP contract rates at the time. Within three months, Convoy was able to improve total primary tender acceptance by 88% on the seven lanes chosen for the pilot. While tender rejections increased 105% the month prior to the pilot, the Guaranteed Primary program delivered on its 100% tender acceptance promise, leading to zero spot loads. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation

Use Cases

Fleet Management

Supply Chain Visibility

Services

System Integration

Challenge

The Fortune 50 general retailer, with nearly 50 supply chain facilities and 2,000 stores across the United States, was facing challenges in optimizing and innovating their freight operations across vendor to distribution center routes. The retailer was experiencing waves of canceled shipments due to a spike in freight demand in 2021. Many carriers were unable to fulfill the increasing volumes well above committed contract volumes, leading to increased volume hitting the spot market. This resulted in underperforming lanes that remained business critical, but drove up operating costs. Reliable capacity was needed to support peak retail seasons.

About Customer

The customer is a Fortune 50 general retailer with nearly 50 supply chain facilities and 2,000 stores across the United States. The retailer is continuously seeking ways to optimize and innovate their freight operations across vendor to distribution center routes. The retailer's operations teams found themselves facing waves of canceled shipments as demand for freight spiked in 2021. Goods were flying off shelves, including consumer favorites that were high-visibility and high-volume. Many carriers were unable to fulfill spiking volumes well above committed contract volumes. Increased volume hit the spot market as a result. Underperforming lanes remained business critical, but drove up operating costs, and reliable capacity was needed to support peak retail seasons.

Solution

Convoy, which was already delivering 100% of contracted volume with the retailer, was chosen to pilot the Guaranteed Primary program when spikes in volume required even more flexible and reliable capacity. During the pilot, Convoy guaranteed 100% tender acceptance at a fixed 10% margin across 7 out of 26 existing primary lanes. These lanes were experiencing high volume spikes and load cancellations/ tender rejections. Estimated savings through Guaranteed Primary rates were estimated at $1.6 million when compared to standard RFP contract rates at the time. Within three months, Convoy was able to improve total primary tender acceptance by 88% on the seven lanes chosen for the pilot. While tender rejections increased 105% the month prior to the pilot, the Guaranteed Primary program delivered on its 100% tender acceptance promise, leading to zero spot loads.

Impact #1	Consistent, high-quality coverage with guaranteed 100% tender acceptance on business-critical lanes.
Impact #2	Flexible and reliable capacity provided during peak retail seasons.
Impact #3	Immediate cost and savings optimization with rates in-tune with market conditions.

Impact #1

Consistent, high-quality coverage with guaranteed 100% tender acceptance on business-critical lanes.

Impact #2

Flexible and reliable capacity provided during peak retail seasons.

Impact #3

Immediate cost and savings optimization with rates in-tune with market conditions.

Benefit #1	Estimated savings through Guaranteed Primary rates were estimated at $1.6 million when compared to standard RFP contract rates at the time.
Benefit #2	Within three months, Convoy was able to improve total primary tender acceptance by 88% on the seven lanes chosen for the pilot.
Benefit #3	Shipment volume grew from 166 to 1,193 from February 2022 to March 2022 alone.

Benefit #1

Estimated savings through Guaranteed Primary rates were estimated at $1.6 million when compared to standard RFP contract rates at the time.

Benefit #2

Within three months, Convoy was able to improve total primary tender acceptance by 88% on the seven lanes chosen for the pilot.

Benefit #3

Shipment volume grew from 166 to 1,193 from February 2022 to March 2022 alone.

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Overview

CONVOY Shipper Story: Taming tough lanes and saving on costs with a Fortune 50 retailer

Operational Impact

Quantitative Benefit