During last 7 years, we passed away from traditional freight-forwarding company to digital freight-forwarder. I want to share few insights in this article about possibilities of work automation with AI in logistics which we currently testing at Cargofy.
If you look on responsibilities of the ordinary broker who received the new order from the shipper, you will see:
Let’s look in more detail:
Each truck has a cost per mile which includes maintenance, depreciation, salaries, leasing payments, etc.
But experienced brokers understand it is not always possible to get a price above necessary CPM. For example from New York prices always lower, than to New York. It’s because a lot of freights shipping into a region, and a little out of a region. Broker know it and always put the additional sum in CPM of the shipping to New York.
Digital way: Algorithm which can automatically do this work. Self-learning neural network which can analyze dozens of metrics: supply/demand in each region, price dynamics, seasonality, weather, сondition of roads, traffic jams, etc. and based on this information calculate market price instantly, in most cases better than broker with 10 years of experience.
When you calculated the competitive market price you have to find a reliable truck. And what matters truck parameters, location, empty space in body, reliability, and rating of the driver.
If you looking on traditional load boards, it is the story about the waste of time due to a lot of calls or long tenders.
Digital way: Through mobile app for drivers we can have following real-time information from thousands of trucks on roads: location, parameters and empty space, status, etc. this allows you to find a suitable truck automatically. Most of the self-employed drivers can’t calculate CPM on their own. It’s why we proposal fixed CPM for each driver based on truck parameters, but they also have to drive more than 8000 miles per month to receive this price. It guarantees for us, that driver will go to unpopular routes and we will be able to provide a fixed price for all deliveries.
Some of the brokers using special accounting programs, but a huge part of the market still using Text Editors to fill documents and some still use faxes!
Digital way: Fully automatic generation of documents. Drivers can scan and sign documents through the mobile app on the road. All documents stored in the personal cabinet on the website and also can be exported to the accounting program.
Only big brokers can provide order tracking, ordinary brokers usually call 10 times per delivery for driver and ask “Where are you?”
Digital way: Full-automated tracking without any special physical devices using GPS location from a smartphone.
A large number of non-payments and delays, through unreliable and unprofessional brokers.
Digital way: Automate scoring solvency of the shipper. Emails with a reminder of the due date.
Brokers often forgot to ask for the feedback.
Digital way: Use IVR and collect feedback from customers and carriers in automatic mode from each delivery. Provide a priority for carriers with the best rating.