PROCUREMENT'S TECHNOLOGY REVAMP JOURNEY

PROCUREMENT'S TECHNOLOGY REVAMP JOURNEY

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The freight procurement industry has been notorious for its habit of being slow to adopt new technology. But with the COVID-19 pandemic upending things, those in freight procurement have taken a more progressive stance in terms of technological experimentation and adoption. But what is underpinning this “technology revolution” and what are some of the attitudes within the industry that will help shape the space in 2022?

AI and Automation 

AI is completely changing the way shippers approach procurement. In fact, we recently uncovered that 97% of shippers said that automating a static freight procurement process has become a priority for their company, with nearly 70% specifying that it was a high priority. And if this mindset continues, don’t be surprised to see static freight tender processes-- that transportation teams have relied on for decades-- replaced with AI-driven automation technology that uncovers resilience, sustainability, and cost reduction opportunities for shippers.  

Real-Time Insights

Even with this “technology revolution,” a surprising amount of companies still don’t have access to real-time data. 26% of shippers admit to not using it. Instead, they rely on market averages from DAT and Freightwaves, or historical data, to make important freight procurement decisions. As the world speeds up, shippers have become increasingly aware of the need to get real-time data if they are going to uncover better value and performance. Thus, sophisticated technology that uncovers actionable, real-time data and insights has gone from a “nice to have” to an “absolutely must-have.”

Want more insights? Check out our 2022 State of Freight Procurement Report.