Here's How Uber is Expanding Its Freight Procurement Offering
With the last couple of years being so incredibly volatile when it comes to freight supply chains, procurement teams are searching desperately for new and modern solutions to the business of getting goods to their ultimate destination.
Previously, businesses have relied on contract and spot freight procurement, but the global COVID-19 crisis has made long-term contracts significantly less dependable than they would have been in the pre-pandemic world. This has caused the spot market to surge and shippers to face record capacity lows and unprecedented demand, leading to all involved in the procurement chain scrambling to adjust and adapt.
Unprecedented problems call for innovative solutions, and who better to solve the freight procurement issue than a tech brand which already successfully disrupted a different kind of transport service?
Uber Freight
Not content with turning the taxi industry on its head, Uber launched its digital freight procurement service, Uber Freight, with a goal of making the business of procuring shipping services simple and instantaneous.
The issue with traditional freight procurement was the way bidding processes with large shippers could extend for months and pricing was an inefficient and opaque process. This meant freight procurement was often inflexible and unable to respond and adapt to changes in the market.
However, with Uber's solution, freight procurement is carried out in real time with instant pricing and tendering. Uber Freight also has direct API integrations leading to reduced overheads, flexible and scalable operations for shippers, and a customer experience like no other in the freight procurement business.
Uber wasn't finished with its freight innovation however, and recently announced that it would be further expanding its Uber Freight offering with Market Access.
Market Access
Designed to act as a streamlined procurement channel, Market Access will allow shippers to source capacity directly on the Uber Freight marketplace and offer new levels of reliability, confidence, and cost transparency.
"Uber Freight has continued to introduce innovative solutions to help our shipper partners navigate an evolving market," said the company in a blog post. "In the past year, we've expanded the Uber Freight API, enabling customers to receive real-time pricing quotes from Uber Freight on a wider range of TMS solutions and leverage our capacity when other routing guide carriers fail. Today we are further expanding our real-time freight procurement offerings by introducing Market Access."
The Market Access platform allows shippers to place loads directly on Uber Freight's marketplace with access to over 70,000 carriers. Uber Freight's powerful artificial intelligence powered algorithms then go to work to procure the most appropriate and cost-effective capacity available for that load. Once the shipment has reached its destination, the sender will pay a previously agreed upon fee plus the carrier cost, offering complete transparency into pricing and avoiding any unwelcome surprises.
Shippers can also customize options such as applying pricing guardrails or adjusting pricing priority based on their current requirements.
"Several enterprise shippers around the US are already using Market Access to substantially reduce transportation cost and streamline logistics operations," said Uber in another blog post announcing Market Access. "In Q4 2020, a top volume user of Market Access reported high single-digit percentage savings on low-volume lanes compared to alternative procurement channels. Frequently, individual load savings were more than 10%. In another customer case, with the need for manual procurement removed, the automated load execution provided by Market Access led to reported operational savings of around $50 per load."
Market Access can be seamlessly integrating into any existing freight procurement operation and used alongside any TMS solution. This makes Market Access another useful piece of equipment in the toolbox any procurement team can make use of - whether as a main means of sourcing freight or as an alternative to their usual solution.
As is expected these days with any serious digital solution, Uber Freight's Market Access platform also provides detailed reporting and gives procurement teams access to data streams which can be used to validate cost savings and better strategize for the future.
"We decided to introduce Market Access at LG both because of the trust we've built up with Uber Freight and because there was such a unique need for a procurement offering like this," said VP of Supply Chain for LG Electronics USA, Paul Heffernan. "Market Access allows us to access competitive rates on inconsistent volume, especially important in a tight market. Every time Uber Freight rolls out a new feature or product - facility ratings, Powerloop, dedicated lanes, Market Access, and so on - we're always eager to introduce it to the team and into our workflows."
Final Thoughts
Disruptive times call for disruptive solutions and Uber's answer to the problem of procuring freight solutions is certainly that. Anything which makes freight procurement more transparent and streamlined is sure to be welcomed and that is something Uber Freight offers in spades.
You can hear Uber's Global Head of Strategic Sourcing, Contingent Labor, and Logistics, Neil Aronson, speak at ProcureCon Indirect West 2022, taking place in April at the Sheraton Grand at Wild Horse Pass, Phoenix, AZ.
Download the agenda for more information and insights.