NNR GLOBAL LOGISTICS
Global shifts and ratemanagement through tech With global occurrences such as the obvious 2020 pandemic and its initially not-soobvious supply-chain consequences , the US-China trade war and Russia ’ s invasion of Ukraine , price fluctuations are at truly unstable levels . NNR has about 15 to 30 different ocean carriers , about 50 to 100 different air-carriers and about 2000 to 5000 different trucking carriers that they work with .
Sullivan says : “ We make contracts with all these different carriers , trying to aggregate and then filter-through all the related contracts in order to find the right rates , for the right type of shipment , with the right validity . This is why Amazon has made so much money – applying the right filters in the right places .”
“ Rate-management has really come down in price , in that the filters and the technology have been able to aggregate all that data , add some basic AI in terms of scraping through the different documents as they come in , and then centralising them . But post-2019 , because there is so much fluctuation in price due to the inconsistencies in supply and demand , you can throw all of that out of the window . We are finding ourselves in a situation where we must pick up the phone and say , ' hey , what rate can you give me for this car , right now ?', which has really made the environment a lot more competitive again – where it ' s not just all about big-buy . Now , it ' s all about local relationships and about picking up the phone and working hard to get it done .”
How technology is utilised for sourcing On the question of utilising technology for sourcing , Sullivan also expresses how large companies are having a transformational
88 August 2022