Asset like performance and safety – in a digital freight network
Carriers, Shippers • Published on July 30, 2019
Historically, shippers have relied on brokers for flexible carrier capacity but looked to asset-based carriers to manage risk and improve service quality. Shippers were forced to make an either/or decision. But Convoy delivers the best of both, offering the flexibility of a broker while also providing the safety and quality typically associated with asset-based carriers.
Shippers can expect a new tech-enabled compliance and safety standard when entrusting their loads to Convoy, as evidenced by the following data points:
First, Convoy’s analysis shows our network of carriers is 15% safer than the industry as a whole and is safer than the majority of the nation’s leading asset carriers. This new standard in safety helps shippers improve service quality and mitigate legal, financial and service related risk, all while giving them the flexible capacity and access to equipment they need to most efficiently manage the movement of goods in their supply chain.
Next, Convoy is involved in far fewer cargo claims than the industry average. In domestic full truckload movements, on average a load is subject to a cargo claim about 1 in every 100 loads. With Convoy, the ratio is less than 1 in every 2,200 loads. In short, Convoy’s claims incident ratio is less than 1/20th of the industry average.
As always, Convoy’s carriers must meet all of our rigorous compliance standards for safety, operating authority, insurance, and documentation, prior to being assigned to a load.
Why It Matters – Shipper Benefits
Access to a safer network of trucks. Convoy outperforms the industry and the majority of the top 25 national asset carriers in average network safety, as measured by estimated crash rates based on FMCSA predictive methodology. This is also true in backward looking analysis of actual crashes as compared to the top national asset carriers.
Assurance. To provide peace of mind to shippers, Convoy systematically vets carriers against our rigorous compliance standards, in real time prior to every load assignment.
Improved automation – lower error rate. By relying on systems to automate the process human error is removed from the equation. A motor carrier’s ability to get loads with us is not predicated on how well they know a specific person at Convoy, but how good their service and safety record is.
Fewer cargo claims. With an incident ratio less than 1/20th of the industry average, Convoy creates a great customer and carrier experience and materially reduces supply chain costs for shippers.
Mitigate Risk. Legal, financial, service, and reputational risk is inherent in transportation. Shippers who rely on our safer network of trucks are more likely to reduce risk in these categories.
How Convoy Is Different
At Convoy, we are passionate about providing our shippers with access to safe, compliant, high performing network of trucking companies. Helping our customers manage risks and service levels in transportation, and in turn driving down the total cost of transportation, is foundational to what we do.
We set higher standards for our carriers than the nation’s most prominent brokers and asset carriers typically maintain. By using a data-driven process (enabled by our technology platform) to manage adherence to our rigorous standards, we create a strong foundation that helps build trust with our customers and our carriers.
Convoy algorithmically evaluates and determines which carriers are eligible to haul loads, in real time, before every load assignment. By automating the assessment of a carrier’s service quality and compliance characteristics, we remove human error and bias, and the gaps that come with static checks, which in the traditional process can sometimes let unqualified carriers back on the road. Convoy’s review process takes place in real time, at multiple steps of the carrier and shipment lifecycle.
There are many real and material risks to substandard carrier vetting and performance management. Convoy set out to address these problems and the results of our quality and compliance services are proof of the efficacy of our approach.
For shippers, the benefits of introducing real time data and technology into your risk management are also real, and can lead to significant competitive advantage through lower supply chain costs and higher levels of service. The good news – this service is deployed across Convoy’s nationwide network and is available today to all Convoy customers.
Whether you’re ensuring carrier quality and compliance or finding your next freight partner, consult our guide to developing a freight transportation strategy.
The information provided by Convoy, Inc. is for general informational purposes only. The author does not in any way guarantee or warrant the accuracy, completeness, validity, or reliability of any information and will not be held responsible for the information provided herein. The information presented is not intended to convey or constitute legal advice. THE USE OR RELIANCE OF ANY INFORMATION CONTAINED ON THIS PAGE IS SOLELY AT YOUR OWN RISK.