Convoy Opens Up Digital Freight Network to Truckload Brokerages | Financial Buzz

Convoy Opens Up Digital Freight Network to Truckload Brokerages

Convoy, the nation’s leading digital freight network, today rolled out a new program that provides freight brokers with direct access to Convoy’s network of owner-operators and small carriers, numbering more than 300,000 trucks. Convoy for Brokers enables brokerages to quickly find high-quality capacity while maintaining their relationships with carriers and the privacy of their data. Convoy’s unique carrier compliance program helps ensure that brokers’ loads are delivered safely and on time. And with zero upfront costs, brokers are only invoiced when loads are successfully booked through the program. Industry-leading freight providers, including USA Truck and AFS Logistics, are now using the new program to tap into Convoy’s elastic capacity and expand their carrier bases. These and other brokerages can double their productivity while also improving service quality through the use of Convoy’s technology.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211118005535/en/

Convoy for Brokers: How it Works (Graphic: Business Wire)

Convoy for Brokers: How it Works (Graphic: Business Wire)

Brokerages Need Easier Access to High-Quality Capacity

There are more than 18,000 registered freight brokers across the United States. Each provides a critical supply chain service by arranging for trucking companies to haul shipments for businesses of all sizes. At least 43% of all truckload shipments are currently run through independent freight brokers or brokerage arms of asset-based carriers.1 Over the last 18 months, brokers have seen a surge in demand for their services as shippers have needed more flexible capacity to respond to market volatility and fluctuating demand.

However, the process of manually brokering loads often requires hours of back-and-forth emails and phone calls with multiple carriers, limiting broker productivity and increasing truck costs as lead time is consumed by manual activity. In addition, brokers often operate with limited or outdated information about carrier safety and performance, increasing their risk of customer service issues and cargo claims. And as record demand continues to outpace supply in many industries, brokers are increasingly struggling to find trucks, resulting in a higher incidence of service failure.

“In order to source more capacity in a shrinking market, brokers must digitize and automate the process of matching shipments to available trucks,” according to a Gartner report authored by Bart de Muynck, Vice President of Research, and Carly West, Research Director. The report further states, “the volume and demand is too great for manual processes to continue being effective and to allow brokers to be competitive.”

Convoy for Brokers Provides Instant Access to Vetted Carriers

Convoy is uniquely positioned to address these issues. Over the last six years, the company has built one of the largest networks of small carriers and owner-operators in the US with a fleet numbering more than 300,000 trucks. By using technology and data to automate its own brokerage—including pricing, load matching, verifying carrier safety and performance, scheduling appointments, real-time GPS tracking, automated backhauls, digital BOL and document management, and carrier payment—Convoy has created the most efficient way to secure elastic, high-quality capacity and manage truckload freight.

With today’s announcement, Convoy is opening up its digital freight network, enabling brokers to access its fleet of carriers and improve productivity through brokerage automation. The program provides brokers with an online platform where they can manage their loads and incoming bids and TMS integrations that enable them to book and manage loads using their existing tools and processes. There are zero upfront costs for brokers to use the service, with invoices only being sent after loads are successfully booked. Brokers remain the broker of record on shipments, continuing to directly manage their shipper and carrier relationships, while Convoy’s technology and digital freight network facilitate the process.

Powering this new service are five innovations that save brokers time and enable them to provide better service quality to their customers and carriers:

  • Load matching at scale – Convoy enables brokers to quickly flex capacity as their customers’ demand fluctuates. Brokers get control over carrier selection and can confirm loads in as little as three minutes.
  • Pre-qualified carrier network – Convoy’s industry-leading carrier safety standards use data and machine learning models to ensure that every load is hauled by an extensively vetted, high-quality carrier. The result is a crash rate 16% lower than the industry and a cargo-claims rate 20x lower.
  • Industry-leading visibility – With more than 95% of loads in Convoy’s network consistently connected through the company’s mobile app, brokers can see the precise location of their shipments on a map.
  • Automated document management – Brokers can eliminate manual paperwork with online access to shipment documents, including BOLs, proof of delivery, and inventory photos, which can be uploaded directly from Convoy’s app.
  • Automated carrier payment – Through Convoy QuickPay™, carriers can get automatically paid in two days with no hidden costs and no additional paperwork.

“Today’s announcement is the result of more than a year of hard work, including a tight collaboration between Convoy and the forward-thinking team at USA Truck,” said Brooks McMahon, VP of Partnerships at Convoy. “Our partnership with USA Truck has been integral to the evolution of this new offering, and it’s led to an acceleration of the program and collaboration with other partners like AFS Logistics. Our work together over the last year exemplifies how freight industry collaboration can benefit all parties — carriers, shippers, and brokers.”

“There’s a lot of waste in the freight industry, and we believe much of it can be avoided with new approaches to capacity sourcing and shipment automation,” said George Henry, Senior Vice President at USA Truck, Inc. “While there are some areas where we compete with Convoy, there’s more opportunity for both of us when we work together. Convoy for Brokers complements our existing truckload offering—it’s helped us support additional growth in our load volume and increase the productivity of our team by making it easier to access trucks through Convoy’s digital freight network.”

“As a rapidly growing third-party logistics provider, we are constantly evaluating new approaches for sourcing flexible capacity as our domestic truckload business expands,” said Andy Dyer, President of Transportation Management at AFS. “We are excited about Convoy for Brokers, as it provides incredibly efficient access to a large, pre-vetted carrier network with a unique pay-as-you-go pricing model that will scale with our growth.”

Carriers Benefit from Convoy for Brokers

As part of Convoy’s ongoing commitment to helping drivers earn more with less hassle, today’s launch of Convoy for Brokers benefits the tens of thousands of carriers and owner-operators that have joined the digital freight network. As brokers add new shipment volume to Convoy’s digital freight network, carriers gain access to additional quality loads, enabling them to more efficiently keep their schedules and their trucks full. And as carriers establish new relationships with the brokers joining Convoy’s network, they also get the same benefits they’ve become accustomed to from Convoy, including payment in two days with free Convoy QuickPay™, hassle-free detention, in-app feedback on their bids, and more.

“There’s a reason I run 100% of my loads with Convoy—they keep finding new ways to keep my truck full and increase my company’s potential earnings,” said Robert Key of Bizzyb Transport. “There isn’t another company that comes close to matching Convoy’s service quality and commitment to carriers. With 3rd-party loads now coming through the app, I have even more flexibility to drive my favorite lanes all while maintaining my Convoy experience.”

“Convoy’s mission is to transport the world with endless capacity and zero waste. The only way to achieve that mission is by partnering with other freight companies and sharing the benefits of a digital freight network,” said Dan Lewis, Convoy Co-founder and CEO. “With today’s announcement, we’re providing brokers with a new source of elastic capacity and the opportunity to build out their carrier base, while also expanding opportunities for carriers—providing more loads in the Convoy app so that they can fill their schedules, earn more money, and reduce empty miles.”

Starting today, Convoy for Brokers is available to freight brokerages nationwide. More information is available at convoy.com/brokers.

About Convoy

Convoy is the nation’s leading digital freight network. We move thousands of truckloads around the country each day through our optimized, connected network of carriers, saving money for shippers, increasing earnings for drivers, and eliminating carbon waste for our planet. We use technology and data to solve problems of waste and inefficiency in the $800B trucking industry, which generates over 87 million metric tons of wasted CO2 emissions from empty trucks. Fortune 500 shippers like Anheuser-Busch, P&G, Niagara, and Unilever trust Convoy to lower costs, increase logistics efficiency, and achieve environmental sustainability targets.

1 Convoy analysis of U.S. Census Bureau, Economic Census, 2017 industry revenue statistics.

Contacts

Chris Volk

chris.volk@convoy.com

310-663-4315

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