Dynamic Rates for a Dynamic Network

Saving minutes matters when you provide supply chain products and services that are critical to the business operations of leading manufacturers and retailers worldwide. For one multinational industrial goods company, accessing coverage at fair rates was of the utmost importance. By enabling Convoy Dynamic Backup in their transportation management system (TMS), the company saved thousands of operational hours and an estimated $400,000. Here’s how Convoy’s pricing program made that possible.

Challenges of Predicting the Unpredictable in Freight

A multinational industrial goods company needed to deliver supply chain products to their customers, often within 24 hours’ notice. How much product their customers would need, by when, and to where was often unknown. Adding to the complexity of their operation was the need to also retrieve the products from their customers’ locations and then dynamically route them to servicing centers, stocking locations, or other customers’ operations.

The company recognized the challenges of forecasting their dynamic network and fulfilling their bi-directional transportation needs. Shipments also often needed to be transported at the last minute, on new lanes, to thousands of locations across the United States. Freight RFPs were not a good fit for business operations because volume requirements and lane pairings were often unpredictable. Turning to the spot market for thousands of loads was unsustainable in the long run, requiring immense administrative effort and cost.

Enter Convoy Dynamic Backup

Recognizing the need for coverage at fair rates, the company enabled Convoy’s Dynamic Backup API in their transportation management system (TMS). This unlocked 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 freight 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.

Dynamic aining Peace of Mind

More than 40,000 of the company’s loads have been successfully picked up and delivered through Convoy Dynamic Backup since January 2021. During this time, Convoy was able to meet their spiky demand during seasonal and holiday surges, plus flex up to three times their average weekly capacity during surges.

“We recommend our load planners choose Convoy’s dynamic rates whenever possible, rather than doing a spot market auction. We know Convoy will always accept the tender, and they have the best combination of competitive pricing and high quality service.” —Sr. Analyst, Logistics Execution Global Industrials Company

Saving Time and Money

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 by avoiding the spot market. Transportation teams also saved thousands of operational hours waiting for and negotiating rates for time-sensitive and business-critical freight operations.

As the market continues to soften, the company is 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.

Getting Started with Dynamic Backup

New to Convoy? Get a demo and learn more about shipping with us. Let’s talk.

Already ship with Convoy? Get in touch with your account manager.

More on how dynamic pricing helps shippers
Viv Luu
Viv (she/they) drives B2B product marketing for Convoy’s dynamic pricing programs. She previously led go-to-market and expansion strategies for AI-assisted solutions at a leading fintech company. She also spent +10 years growing marketing programs with brands including Adobe, Microsoft, IBM, and NIKE.