Market variability is the enemy of scale and efficiency for the transportation industry.
Faced with high market variability and a need to lower transportation costs, Frank McGuigan, CEO of Transplace, knew he needed to try a radically different approach that would allow his operation to adjust and learn with changing market conditions.
Transplace is committed to being a technology leader – not just in developing innovative logistics solutions, but in the technology we incorporate into our business.
The Noodle.ai Enterprise AI® applications sense data from multiple data sources, helping Transplace predict market conditions across hubs. This helps them recommend dynamic continuous moves to maximize network density effect. To realize this vision, Transplace’s network needed to be optimized to reduce spot market exposure, lower carrier costs, and predict market demand.
Our Demand Signal AI application predicts market demand conditions across transportation hubs in the U.S. We correlate imbalance with signals like contract rates, spot rates, and tender accept activity, then we provide insights that impact rate-setting and capacity acquisition and provide increased visibility to shippers.
Using Noodle.ai’s applications, Transplace avoids paying spot market rates and reduces carrier costs by building probabilistic itineraries that reduce empty miles. This leads to $7 million in cost savings.