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Press Release

Schneider Logistics Leverages JAGGAER Technology to Fundamentally Change Traditional Transportation Bidding Model

Sourcing

RESEARCH TRIANGLE PARK, NC – November 5, 2019 : Schneider (NYSE: SNDR), a premier provider of transportation and logistics services, working in tandem with JAGGAER, the world’s largest independent spend management company, is delivering innovative new approaches to managing transportation bids . Using Schneider Logistics’ BidSmart® methodology and JAGGAER’s Advanced Sourcing technologySchneider’s procurement strategy is tailored to address a diverse range of shipper needs.

This new functionality helps customers of Schneider’s Supply Chain Management servicesQuickly adapt to changing market conditions: from daily spot market execution to contract capacity generation and from low density lanes to those considered business-critical. Using this segmented approach, Schneider has helped customers secure rates that have outperformed industry benchmarks by 520bp in 2019.

“Schneider aggregates its $ 2.5 billion of freight management spend into collaborative bids, streamlines the carrier experience and drives competitive rates that outperform the market,”  says Mike Kukiela, Schneider senior vice president of Supply Chain Management. “Markets are dynamic, and a bidding technology needs to be powerful enough to adapt to these changes. Spot rates have softened in 2019 relative to contracts, so our automated auction technology combines all managed freight to maximize participation and results. More options help reduce shippers’ costs, regardless of the market cycle. Our work with JAGGAER is at the forefront of the innovation curve and delivers what shippers need to be successful, ”  he adds.

Jaggaer’s advanced technology helps shippers select the best procurement strategy for every market cycle and can apply to both low-density freight as well as year-round capacity generation. By aggregating density, Schneider creates fewer, larger bidding opportunities that increase carrier participation rates, driving greater competition and generating more options for its customers. BidSmart® has enabled Schneider Logistics to increase the number of offers to shipments by 54% and provides customers with the option of running trials. Additionally, this strategy allows Schneider to reach a broader carrier pool and introduce new carriers into the mix, thereby changing the traditional model bringing strategic benefit to shippers.

Schneider’s hybrid solution addresses market needs, which reflect what was reported in the 2019 Schneider Logistics Transportation Industry Review. The Schneider report, based on data from over 27,500 carriers, found a 10% -30% deterioration of primary contracted labor utilization, spot freight costs that peaked nearly 40% over contracted rates and overall shipping freight cost increases. This data provides a strong case for a continual reevaluation of sourcing utilizing the most sophisticated optimization technology available.

Selected results of this approach:

 

  • 7% savings
  • Reduced spot market reliance and captured benefit through lower contracted rates
  • New carriers identified, building asset depth and diversification

“Schneider is a terrific example of how JAGGAER customers utilize our intuitive and intelligent SaaS technology to attain their own business goals and move an innovation agenda forward. Their adoption of our sourcing solution adapted to their deep expertise and industry-leading technology has created an important solution that the logistics industry needs right now: critical insights to optimize logistics decisions, ”says Jim Bureau, CEO of JAGGAER.

Shippers who want information on how technology, like Schneider’s BidSmart®, can optimize the bid process and advance their supply chain efforts can learn more by visiting Schneider.com or emailing solutions@schneider.com.


 

About JAGGAER: Procurement Simplified

JAGGAER is the world’s largest independent spend management company, with over 2000 customers connected to a network of 4 million suppliers in 70 countries, served by offices located in the Americas, APAC, Asia and EMEA. JAGGAER offers complete SaaS-based Source to Pay eProcurement solutions with advanced Spend Analytics, Sourcing, Supplier Management, Contract Lifecycle Management, Savings Tracking, and intelligent workflow capabilities all on a single platform, JAGGAER ONE. JAGGAER has pioneered spend solutions for over two decades and continues to lead the innovation curve by listening to customers and stakeholders in all industry sectors, public services and academia. Additionally, JAGGAER holds 37 patents–more than any other spend management company.

About Schneider

Schneider is a premier provider of transportation and logistics services. Offering one of the broadest portfolios in the industry, Schneider’s solutions include Regional other Long-haul truckloadExpeditedDedicatedBulkIntermodalBrokerageWarehousingSupply chain management  other Port Logistics.

With $ 5 billion annual revenue, Schneider has been delivering superior customer experiences and safely getting it done for over 80 years.

For more information about Schneider, visit www.schneider.com or follow the company socially on LinkedIn and Twitter: @WeAreSchneider.

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