C.H. Robinson points to ongoing progress on digital quote delivery and shippers’ cost savings

Minneapolis, Minn.-based global logistics services provider and freight forwarder C.H. Robinson (CHR) recently heralded significant progress it has made its delivery of digital quotes, for both over the past year and also the first quarter of 2022, at almost 2.7 million and 1 million, respectively, with the latter also marking a 54% annual gain.

The company explained that these figures speak to how shippers continue to increasingly depend on automation in order to get spot freight quotes, which has gained further traction over the last year, despite spot rates falling almost 15% going back to mid-January, adding that these integrations are comprised of connections with more than 35 transportation management systems (TMS) and enterprise resource planning (ERP) platforms, as well as hundreds of customer routing guides, which it said “directly offer access to automated freight bids, guaranteed capacity, and benchmarking and analysis to reveal competitive rates in real-time that can be booked directly within whatever native platform the shipper is using for managing transportation.”

Looking at the first quarter, CHR said that two-thirds of the company’s spot business was priced through the company’s dynamic pricing engine (via Navisphere, its single global technology platform, which provides end-to-end visibility, consistent business processes, and strategy-driven business intelligence on a global basis and is used by CHRW employees, customers, and service providers to manage transportation and sourcing activities globally), delivering real-time quotes and capacity assurance via its North American truckload carrier network, bringing myriad benefits for shippers, including:

• up to 65% cost savings for connected shippers;
• those with route guide integration in their existing TMS saw up to 65% savings on
• transportation costs, with an average of 10-20% savings, compared to those quoting and
• booking without a route guide integration;
• those with route guide integration were 75% less likely to be penalized with spot rate
• premiums when compared to quoting through the traditional spot market;
• thousands of hours of time savings for connected shippers: and
• those connected to C.H. Robinson’s dynamic pricing engine are provided instant rates on spot loads, eliminating manual work and saving individual customers thousands of hours a month

What’s more, in a recent customer survey, CHR said it found that 75% of market volatility over the last year raised their need for new supply chain technology, automation, and predictive analytics, with 50% noting they have increased adoption for this technology.

CHR President of North American Surface Transportation Mac Pinkerton provided LM with a detailed overview of the company’s progress on this front and how shippers are further turning to automation to get spot freight quotes, in this Q&A below.

LM: What, in your opinion, is driving the need for the significant (54%) gain in digital quotes for Q1?

Pinkerton: Current market conditions have been a big driver of what has made our digital connectivity efforts so important as shippers are increasingly looking for automated access to capacity and cost advantages.  By enabling our customers to connect into Navisphere, the world’s most connected transportation platform, they can easily take advantage of competitive market rates and execute their transportation plans in the most cost-effective and efficient ways possible.

This is especially important in today’s softening market, as connectivity enables customers to move more quickly to get lower market rates—likely lower than contract rates—and take advantage of cost savings with greater convenience, speed, and visibility, without the hassle of phone calls and time spent waiting for confirmation.  On the flipside, digital connectivity is extremely important in a tight market as well, guaranteeing access to capacity and competitive rates.

As the mover of more truckload freight than anyone else in North America and with a network of more than 85,000 carriers across the globe, we are unique in being able to offer our shippers this kind of agility, seamless access to capacity assurance and the most competitive rates in any market.

LM: What needs to happen to get more shippers to “buy in” to digital/routing guide integrations?

Pinkerton: We are already seeing significant customer adoption. Hundreds of customers are already using this digital connectivity and are taking advantage of market rates that are embedded in their system.

For those that haven’t adopted this solution yet, awareness is key. Digital connectivity simply automates their existing processes and doesn’t require a brand-new strategy. Once they understand that it is quick and easy to implement, and that it significantly reduces time spent on manual processes like emails, phone calls, and wait time, they are hooked

Shippers also want transparency. That is why we launched Market Rate IQ, which is an industry first in rate transparency. This new technology allows us to show companies how they can save money on the spot market and how their spot rates compare to a trusted third-party benchmark, DAT’s RateView, which gives them peace of mind.

Shippers can see what’s driving their spot rates and what they can do about it. We take that transparency a step further and show customers how their rates compare to the average for each of their shipping lanes and locations. It’s like going to the grocery store and instantly being able to see how the price of everything on your list compares to the market. Who doesn’t want to know if they’re paying more than market rates?

LM: With spot rates declining, coupled with some persistent headwinds, including diesel costs, inflation, and available capacity, do you think that Q2 will be in line for delivered digital quotes? 

Pinkerton: Shippers are increasingly relying on automation to get quotes for their spot freight. This is a trend that accelerated in the past year with historically high truckload rates and is continuing even with spot rates coming down nearly 15% since their peak in early January.

What historically has been a highly manual process of calling or emailing a half-dozen or more carriers to find a truck to haul a last-minute or unexpected shipment, is now much more efficient due to technology. Shippers are increasingly adopting tech. allowing them to receive and book automated quotes directly in whatever platform they use to manage their supply chain.

This is especially important in today’s softening market, where technology and connectivity allow customers to move more quickly to get a lower market rate and take advantage of cost savings.

Further backing the importance of technology adoption, in research conducted by C.H. Robinson at the start of 2022, 75% of shippers said market volatility increased their need for new supply chain technology, automation and predictive analytics, and 50% said they increased their adoption of this kind of technology.

The ongoing changes in the shipping industry caused by the continued COVID-19 pandemic, the conflict between Russia and Ukraine, surging fuel prices, labor disputes in ports across the globe, and more, are driving the expansion of digital freight platforms, in order to provide shippers with real-time access to what they need. As consumer purchasing habits continue to fluctuate and supply chain disruptions related to the pandemic and global conflict continue to emerge and evolve, automation and technology that provide access to real-time pricing with capacity assurance will continue to be critical for shippers and the broader logistics industry.