AI in Freight Procurement Refresh
Technology is one of the hottest topics of conversation today in the freight procurement and logistics space, with AI, in particular, being one of the foremost areas of focus. Given how unstable and chaotic freight procurement has been over the last 24 months, shippers are desperately trying to adopt tools that turn static procedures dynamic and provide real-time insights and visibility to drive better performance, savings, and overall success. And AI-powered freight procurement automation software is proving to be a pivotal tool in helping to achieve these goals.
Here are a few ways that AI is helping shippers break new ground in their freight procurement operations.
Navigating capacity fluctuations has been one of the most challenging aspects of freight procurement over the last two years with the space experiencing a historic period of unpredictability. Shippers simply can no longer rely on outdated tools and the scant data provided by brokers to navigate an incredibly fluid capacity landscape. In turn, shippers have turned to AI as a way to gain a real-time look into the ebbs and flows of the capacity market instead of relying on partial or outdated data they were receiving from their legacy tools and partners.
For years, brokers have been a thorn in the side of shippers for numerous reasons. However, arguably nothing has made this relationship more strained than issues of overpricing. The broker market is renowned for its heightened and opaque pricing structure. And with budgets tightening as a result of the COVID-19 pandemic, shippers have grown tired of this price gouging and thus have turned to AI as a way to dynamically open the bidding for their loads directly with alternate carriers. This has allowed them to eliminate the need for costly, non-transparent middlemen, and gain cost control and a better sense of true truckload market value.
OTD and Reputation Management
Relationship management has always been central to shipping success but has become even more so as a result of the COVID-19 pandemic and subsequent supply chain crunch. And by using AI to source compliant, asset-based capacity when needed most, shippers have a much higher probability to deliver goods on time to keep their customers happy.