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C.H. ROBINSON AND SAS JOIN FORCES TO UNLOCK NEW ERA OF DYNAMIC BUSINESS PLANNING FOR RETAIL AND CPG COMPANIES

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C.H. ROBINSON AND SAS JOIN FORCES TO UNLOCK NEW ERA OF DYNAMIC BUSINESS PLANNING FOR RETAIL AND CPG COMPANIES

Today, leading global logistics company C.H. Robinson and world-renowned data analytics company SAS announced a partnership to rewrite the way global supply chains work as they become increasingly more complex. Until now, supply chain demand planning and shipping execution often worked in autonomous siloes without connection, digital integration, or real-time visibility. This partnership will solve that problem by creating a first-of-its-kind offering: an end-to-end supply chain solution that integrates inventory and demand signal data with real-time transportation data. Steering a supply chain from a centralized operation like this will allow companies more fluid adjustments in scheduling, carriers, and responses to changing consumer demand while inventory is still moving on the ground.

Retail and CPG (consumer packaged goods) companies in North America will benefit first from this integration, although it is designed to eventually fill the gap between business and logistical planning across all industries.

“The C.H. Robinson and SAS collaboration uses data and analytics to solve a gargantuan supply chain problem: agility,” said Brian Kilcourse, retail and CPG analyst at RSR Group. “As 2020’s shortages illustrated, COVID pushed retailers and consumer goods companies over the supply chain cliff. The C.H. Robinson-SAS partnership combines data from retailers and consumer goods companies with logistics and transportation data to build faster, more resilient, cost-effective shipping methods that honor traditional models while clearing a path for needed innovation.”

According to SAS’ Richard Widdowson, Vice President of Global Retail & CPG Solutions, the future winners in transforming retail supply chains will be those who change their mindset from long-term planning to agile planning by effectively leveraging data to make adjustments in real time. “Powered by SAS and mobilized by C.H. Robinson, this partnership helps companies see their supply chains in a new light,” Widdowson said. “It will help make opportunities and challenges visible as they happen so our customers can accomplish more – even during a disruption of pandemic proportions.”

Within an integrated data loop, SAS triggers a demand plan which feeds into C.H. Robinson’s dynamic transportation procurement tool. In turn, that connects into the world’s largest supply chain management platform, Navisphere, to provide real time visibility of inventory, which then links back and informs SAS’ Intelligent Planning suite. This means a retailer or maker of packaged goods, for example, can connect its corporate demand plans to products and freight on the move. They then can better react to real-time changes in demand, such as surge in consumer interest, and real-time changes in transportation factors, such as inclement weather.

“By establishing this unprecedented information loop, we are transforming the procurement process and giving companies the information advantage and flexibility needed to better compete in today’s rapidly evolving transportation marketplace,” said C.H. Robinson’s chief commercial officer Chris O’Brien. “Rather than relying solely on an annual transportation contract event which frequently becomes out of sync with real-world variables, we can build a more dynamic procurement plan that can flex based on real-time changes in product demand and the transportation market. More than ever, supply chain agility, based on real-time data, can be a competitive advantage for companies.”

“Our work with C.H. Robinson and others at the MIT FreightLab has shown that the freight transportation industry needs innovation in procurement and demand-planning to reduce cost, minimize risk, and increase the level of service for shippers,” said Chris Caplice, Executive Director of the MIT Center for Transportation & Logistics (CTL) and FreightLab. “This partnership helps move the industry forward in the right direction of a more responsive and agile transportation procurement solution.”

For more information on the SAS and C.H. Robinson partnership, or to request a demo of the integrated tools, visit CHRobinson.com/SAS.

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About C.H. Robinson

C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With nearly $20 billion in freight under management and 18 million shipments annually, we are one of the world’s largest logistics platforms. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multi-modal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 119,000 customers and 78,000 contract carriers. Our technology is built by and for supply chain experts to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, visit www.chrobinson.com (Nasdaq: CHRW).

About SAS

SAS is the leader in analytics. Through innovative software and services, SAS empowers and inspires customers around the world to transform data into intelligence. SAS gives you THE POWER TO KNOW®.

C.H. Robinson

C.H. Robinson Names Thomas Schoett Vice President of Latin America

C.H. Robinson, one of the world’s largest logistics platforms, is proud to announce Thomas Schoett as vice president, Latin America (LATAM), Global Forwarding. He will report to Mike Short, president of Global Forwarding at C.H. Robinson.

Thomas joined C.H. Robinson in May 2017 as the regional director of South America. In his time with the company, he has improved global alignment and increased our presence on regional trade lanes that are important to our customer base. His efforts continue to add to our global suite of services and the ability for customers to work with one provider for all their logistics and technology needs.

“Thomas brings a deep knowledge of the region, logistics expertise and leadership skills to this role,” Short said. “He will focus on creating synergy within the region and further develop global trade lanes to and from LATAM.”

Latin America is an important part of the company’s Global Forwarding growth strategy, and focused strategic alignment and strong partnerships are critical for continued success.

“I am delighted to be leading the LATAM team,” Schoett said. “Through our network of experts in LATAM and around the globe, we continue to act as an extension of our customer’s teams and drive personalized solutions according to their needs in the region. Additionally, our technology built by and for supply chain experts offers market-leading solutions and real-time visibility to drive better outcomes for our customers’ supply chains.”

Uncertainty in Today’s Air Market: What it Means for You

Reoccurring annual events, like the holiday season, typically bring predictability to air shipping. But lately, out of the ordinary events have disrupted the seasonality we typically expect. The best way to deal with the ever-changing peaks and valleys in air capacity throughout the year is to know both the historical patterns and potential air market disruptors.

The cyclical nature of air freight

Air freight service predictably follows the law of supply and demand. When shipping volumes spike, space on airlines becomes harder to secure and prices go up. And the opposite is true, too. If shipping volumes diminish, space on airlines becomes readily available and the prices go down.

As you might expect, the holiday peak season is one of the busiest shipping periods of the year around the world—including for air. But there are other seasonal surges to be aware of as well. The graphic below visually represents the seasonality of the air market in years’ past.

New disruptors to the air freight market

We’re just over halfway through 2019, and already it’s quite a different market than we’ve seen in the past. Several disruptors are causing a great deal of uncertainty.

Tariffs on Chinese goods

The ongoing trade war is one of the biggest disruptors to air shipping this year. Earlier tariff changes did not make a huge impact on air shipping. But demand for air freight shifted significantly when enough shippers preemptively repositioned inventory prior to the June 1, 2019, deadline. On May 31, 2019, the United States Trade Representative (USTR) announced the deadline would be extended to June 15, 2019.

Ecommerce and high-tech goods

With the growth of ecommerce and high-tech products flooding our markets, air freight is quickly becoming the go-to mode of transportation for many shippers—any time of year. Combined with the promise of two-day shipping, it’s often the only way to meet customer demands.

Adjust your air freight strategy based on the market

With air freight volumes lower than we’ve seen since the 2008 recession, now may be the ideal time to update your air freight shipping strategy.

Choosing air freight can be a strategic way to lower inventory levels in the United States. Finding a balance between inventory costs without sacrificing customer delivery expectations often requires expertise. The air experts at C.H. Robinson are available in offices around the globe to help manage your air freight and ensure any problems are resolved in real-time.

You may even consider that if air freight rates dip low enough, you could make up the difference (at least in part) of the added tariffs on Chinese goods.

The air freight market is a complex ecosystem that will likely remain uncertain for some time. While this uncertainty lasts, you may want to switch to a quarterly planning strategy to avoid a long-term commitment when you don’t know what’s coming.

What’s going to happen?

While inventories in the United States remain high, it’s likely that air shipping volumes will remain low. The best way to insulate your company and your relationships from today’s air market is to stay flexible. Adapt quickly to ensure you can take advantage of soft markets while still buying appropriately during peak seasons.