C.H. Robinson Automates a Task the Freight Industry Does 1 Billion Times a Year

Rhea-AI Summary

C.H. Robinson has developed new technology for touchless appointments in freight shipping, using artificial intelligence to determine optimal appointments based on transit-time data and facility data. The technology has already been implemented for 2,545 customers at over 25,000 facilities, saving shippers time, getting freight on the road faster, and saving shippers money. In a 2024 customer survey, shippers indicate that more-efficient appointment scheduling is their second-biggest tech priority for supply chains this year.

Insights

Supply Chain Management Expert

The introduction of touchless appointments by C.H. Robinson represents a significant leap in supply chain optimization. Automating over 1 billion scheduling tasks annually not only streamlines operations but also directly impacts the bottom line of shippers and carriers. By leveraging artificial intelligence to analyze transit-time data and facility peak times, the system can enhance load planning and reduce waiting times, which are critical factors in supply chain throughput.

This advancement also speaks to the current trend of digital transformation within the logistics sector, where companies are increasingly seeking to reduce manual processes. The ability to schedule appointments without manual intervention 24/7 increases the agility of supply chains, allowing for more responsive and flexible operations. The reported 7.4-hour average gain in speed-to-market could translate into a competitive advantage for shippers, particularly in industries such as retail and food where time sensitivity is paramount.

Financial Analyst

From a financial perspective, the adoption of touchless appointment technology by C.H. Robinson is poised to create cost efficiencies that could reflect positively on their financial statements. Reduced scheduling time from all day to less than 2 minutes signifies a dramatic decrease in operational costs. Additionally, the potential to avoid chargebacks and fines due to scheduling errors can lead to significant savings, which might otherwise equal or exceed transportation costs.

For investors, this innovation could be a signal of C.H. Robinson's commitment to increasing operational efficiency and staying ahead of the competition. The company's use of the largest dataset in the industry to inform its AI-driven scheduling is a strategic advantage that could lead to market share growth and enhanced profitability.

Technology Analyst

The deployment of AI in optimizing logistics processes, as seen with C.H. Robinson's new technology, is a testament to the transformative power of digital tools in traditional industries. The ability to process massive amounts of data to determine optimal appointment times is a complex task that AI handles effectively, showcasing the potential of machine learning applications in real-world scenarios.

Moreover, the fact that C.H. Robinson is moving towards automating complex processes like appointment scheduling is indicative of the broader trend in logistics technology. Such advancements have the potential to set new industry standards and push competitors to also innovate, thereby accelerating the overall technological advancement within the logistics industry.

New tech for touchless appointments is a breakthrough for supply chain efficiency, while saving shippers time and money

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- Global logistics company C.H. Robinson has developed new technology that creates a major efficiency in freight shipping: removing the work of scheduling an appointment at the place a load needs to be picked up and scheduling another appointment where the load needs to be delivered. Across the U.S. trucking industry, more than 1 billion of these appointments are made each year, commonly through phone calls and emails.

With touchless appointments, the entire process is automated and can be done 24/7 with no manual intervention. The technology also uses artificial intelligence to determine the optimal appointment – based on transit-time data from C.H. Robinson’s millions of shipments across 300,000 shipping lanes, facility data such as peak dwell time, and the most convenient time windows for carriers.

When C.H. Robinson first tackled this challenge, the company’s research showed that 74% of shippers wanted greater automation in their supply chains. In a 2024 C.H. Robinson customer survey, shippers indicate that more-efficient appointment scheduling is their second-biggest tech priority for supply chains this year.

“Achieving touchless appointments is a big step forward for automating supply chains,” said Michael Castagnetto, C.H. Robinson’s President of North American Surface Transportation. “It’s far more efficient for technology to find an appointment slot that’s open, that works for both the loading dock and the carrier, and gets the freight where it needs to be on time. Touchless appointments liberate shippers and their receivers from that work, and because we have the largest dataset in the industry, our system is choosing a smarter appointment than our competitors can.”

C.H. Robinson, which moves more truckload freight than anyone in North America, is doing touchless appointments for 2,545 customers so far at more than 25,000 facilities. Retailers and food companies are among the biggest beneficiaries.

This tech advancement is

• Saving shippers time: Instead of spending all day juggling incoming appointment requests, shippers enjoy touchless appointments completed in less than 2 minutes with zero time spent.
• Getting shippers’ freight on the road faster: Touchless appointments allow C.H. Robinson to offer a customer’s load to its carrier network faster, giving carriers better access to freight while securing better rates for the shipper. For customers with comparable freight, the average gain in speed-to-market is 7.4 hours.
• Saving shippers money: The faster a load is offered and booked, the more likely the shipper can avoid paying a premium for a carrier to drive out of their way. Data-informed appointments also help eliminate the chargebacks and fines shippers face from their customers because of freight arriving too early, freight arriving too late or appointments being rescheduled at the last minute – which can add up to more than the cost of the transportation itself.

“The trucking industry has been hungry to digitize everything from load-matching to booking to real-time visibility while freight is in transit,” said Arun Rajan, a technology pioneer who first joined C.H. Robinson as Chief Product Officer and is now Chief Operating Officer. “Giving people better digital tools to use is great progress; actually automating the complex processes of logistics is another frontier. That’s why automation has largely not yet reached appointment scheduling. It’s a big focus for us – in terms of driving efficiencies in our customers’ operations and our own – and we’re proud to be paving the way for the industry. ”

About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $22 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multimodal transportation management system and expertise, we use our information advantage to deliver smarter solutions for more than 90,000 customers and 450,000 contract carriers on our platform. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit us at www.chrobinson.com (Nasdaq: CHRW).

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View source version on businesswire.com: https://www.businesswire.com/news/home/20240207423599/en/

Maria Lettman

maria.lettman@chrobinson.com

Source: C.H. Robinson

FAQ

What new technology has C.H. Robinson developed for freight shipping?

C.H. Robinson has developed new technology for touchless appointments in freight shipping, using artificial intelligence to determine optimal appointments based on transit-time data and facility data.

How many customers and facilities have the touchless appointments been implemented for?

The touchless appointments have been implemented for 2,545 customers at over 25,000 facilities.

What are the benefits of touchless appointments for shippers?

The benefits include saving time, getting freight on the road faster, and saving money for shippers.

What did the 2024 customer survey reveal about shippers' tech priorities for supply chains?

In the 2024 customer survey, shippers indicated that more-efficient appointment scheduling is their second-biggest tech priority for supply chains this year.