Convoy > Case Studies > CONVOY Shipper Story: Dynamic Rates For A Dynamic Network

CONVOY Shipper Story: Dynamic Rates For A Dynamic Network

Customer Company Size

Large Corporate

Region

America

Country

United States

Product

Convoy Dynamic Backup

Tech Stack

Transportation Management System (TMS)
Convoy’s Dynamic Backup API

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms

Applicable Industries

Equipment & Machinery

Applicable Functions

Logistics & Transportation

Use Cases

Supply Chain Visibility
Fleet Management

Services

System Integration

About The Customer

The customer is a multinational industrial goods company that provides supply chain products and services critical to the business operations of leading manufacturers and retailers worldwide. The company operates a complex supply chain, often needing to deliver products to their customers within 24 hours’ notice. The volume, timing, and destination of these products are often unpredictable. The company also retrieves the products from their customers’ locations and dynamically routes them to servicing centers, stocking locations, or other customers’ operations.

The Challenge

A multinational industrial goods company faced challenges in delivering supply chain products to their customers, often within 24 hours’ notice. The volume, timing, and destination of these products were often unpredictable. The company also had to retrieve the products from their customers’ locations and then dynamically route them to servicing centers, stocking locations, or other customers’ operations. Traditional RFPs were not suitable for their operations due to the unpredictable volume requirements and lane pairings. Turning to the spot market for thousands of loads was unsustainable in the long run, requiring immense administrative effort and cost.

The Solution

The company enabled Convoy’s Dynamic Backup API in their transportation management system (TMS). This provided access to instant, elastic capacity at competitive market rates in their routing guide without leaving their TMS and turning to cumbersome spot auctions. As soon as shipments were added to their system, the company could get an instant quote, lock in the price, and snap up a truck. Instant coverage was always one click away as soon as they knew their dedicated and contract carriers couldn’t accept additional loads. Rates for known and new lanes were readily available, eliminating the hassle of contacting and waiting on multiple carriers for contract or spot rates.

Operational Impact

The company was able to meet their spiky demand during seasonal and holiday surges, plus flex up to three times their average weekly capacity during surges.
The company was able to secure backup coverage—when and where they need it—at competitive rates they wouldn’t be able to find elsewhere.
Rates are delivered directly to their TMS and come with a 100% tender acceptance guarantee across all market conditions.

Quantitative Benefit

More than 40,000 of the company’s loads have been successfully picked up and delivered through Convoy Dynamic Backup since January 2021.
By enabling Convoy Dynamic Backup, the company was able to save an estimated $400,000 since the U.S. full truckload (FTL) market started softening in early 2022.
Transportation teams also saved thousands of operational hours waiting for and negotiating rates for time sensitive and business-critical freight operations.