Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 12

COLLEGE OF BUSINESS AND

ECONOMICS (CBE)
JOHANNESBURG BUSINESS SCHOOL
DEPARTMENT OF TRANSPORT AND SUPPLY CHAIN MANAGEMENT

ASSIGNMENT TOPIC:

C.H. Robinson

INITIALS/ SURNAME/ STUDENT NUMBER;


A.P Maluleke 216042817. S Dladla 219092212
O Msibi 216078838. T Nduli 221012339
S HLatshaneni 201122498

CONTACT DETAILS:
0795238889/ percysmog@gmail.com

DUE DATE:
30 - March – 2021

MODULE:
Road freight transport management
Contents
1. Description of the business of C.H. Robinson...............................................................3
2. Advantages of using the Navisphere:...........................................................................3
3. Disadvantages of using the Navisphere app:................................................................4
4. Advantages of using Freightview..................................................................................4
Viewpoint of customers..................................................................................................4
 Saves customers time.......................................................................................4
 Tracking, reporting, and visibility of shipments.................................................4
Viewpoint of Contract carriers........................................................................................4
 Improved customer’s services..........................................................................4
 Improved sales..................................................................................................4
5. Disadvantages of using Freightview..............................................................................4
Viewpoint of customers..................................................................................................4
 Customer exclusion...........................................................................................4
Viewpoint of Contract carriers........................................................................................5
 Exposed pricing.................................................................................................5
6. Type of companies are good targets (potential users) for Freightview.........................5
7. The South African road freight sector (trucking industry)..............................................6
Size.............................................................................................................................6
Condition of the Industry and Competition.................................................................7
8. The idea for C.H Robinson to approach other companies (Private) fleet.....................8
9. The C.H. Robinson TMS solution from an internet of things (IoT)................................8
How does it bring innovation to road sector?.............................................................9
References.......................................................................................................................10
1. Description of the business of C.H. Robinson.
C. H. Robison Worldwide Incorporated is an international recognized third-party logistics
company that offers logistics and supply chain solutions to other businesses. The
company offers logistics services and transportation management systems raging from
the truckload, ocean shipping, air shipping to integrated transportation management
system services. C. H. Robinson company does not own the any transportation modes,
they outsource these services to other transportation carriers registered under their
transportation management system (TMS). C. H. Robinson is a freight forwarding
company which their organise shipments for other businesses or individual to get them
from the suppliers or manufacturers to their destination or end users or customers.
Freight forwarders contract with different types of carries or sometimes multiple carriers
to transports the goods. Some of the likely customers of C. H. Robinson are individual
customers that want to ship their goods to other points of distribution or end point,
companies that sells goods but do not have carries to deliver their products to their
customers for example wholesalers, retailers like Makro, Game or production
companies like Sakata Seeds, Dairy companies, Adcock Ingram etc. Some its
competitors here in South Africa would be DSV, Kuehne + Nagel, Pilot Freight, Platinum
Freight, DHL Global Forwarding, Imperial Logistics etc.

2. Advantages of using the Navisphere:


 Navisphere is easily accessible via the internet, there is no need for the
installation of software, and it provides convenience and ease of mind for
customers.
 Navisphere offers real time solutions to customers at minimal costs, enables
users to pay for the services used only and customers can easily request for
quotes, send tenders with detailed freight specifications like what time of
equipment is needed, when is it needed etc.
 It helps the customers to easily track and obtain real time updates on the status
of the freight and there is no required upfront investment or capital from the
customers.
 It also enables customers to obtain information in a timely manner on the
freight if the delivery will be late and provides a new estimated of the expected
arrival time.
 Navisphere act as a communication tool between the carriers, drivers, and C.
H. Robinson, and it provides a wider choice for transport decision making.
 The Navisphere app allows the drivers to update freight status automatically.
 Navisphere app can be used by drivers to upload and submit load documents
for example, proof of delivery with consignee signature.
 The Navisphere app help the shippers and dispatchers to monitor and track
payment statuses.

3. Disadvantages of using the Navisphere app:


 Navisphere does not allow customers do directly negotiate with carries
because everything is automated online, for example, negotiating for a better
price.
 The Navisphere app is not very effective when dealing with Less than a Truck
load (LTC) freight, this make it to be difficult for small businesses to use the
app.

4. Advantages of using Freightview


Viewpoint of customers.
 Saves customer’s time.
Using a web-based Transport management system gives customers the opportunity to
compare different rates of different companies using web based Freightview. Customers
can get streamlined quoting and booking without having to physically visit 3PL
companies. This helps to save customers time because it is unlike in the past where
customers had to call or visit the 3pl site just to get quotations. Freightview allows them
to get the information they need at comfort home conveniently.
 Tracking, reporting, and visibility of shipments.
Fright view provides customers with feature to track their shipment throughout the whole
journey until it reaches the destination. This advantage allows customers to plan and
arrange for the arrival of their shipments. On the other hand, Freightview charges
customers based on the volume of usage so that small shippers do not need to pay
large costs unlike other systems where it does not matter how big your parcel is you still
get to be charged according
Viewpoint of Contract carriers.
 Improved customer’s services.
Allowing customers to see the movement of their shipments until they reach the
destinations help customers to be updated about the movement of the shipment. This
helps 3pl companies to make sure that their customers enjoy the benefits of tracking the
parcels. This can also build a good relationship between the customer and the carriers.
 Improved sales.
The web based Freightview makes the 3pl service more accessible and easier to use,
even customers, which are located far away from the carrier’s company sites can get to
use the service without having to make any effort to visit the companies. We are in a
fourth industrial revolution where customers starting to rely more on internet for a variety
of services so having the freight view platform reduces the cost of.
5. Disadvantages of using Freightview
Viewpoint of customers.
 Customer exclusion.
Customers, which are not able to access the internet, are not able to enjoy the benefits,
which Freightview offers to the online customers. On the other hand, even customers
who have access to the internet but do not have data cannot use Freightview.
Viewpoint of Contract carriers.
 Exposed pricing
This web-based platform affords other carrier companies an opportunity to access the
prices/rates of their competitors. This could help the competitors to gain advantage that
is more competitive by beating your prices and gain more market share while you lose
customers.

7. Good targets (potential users) for Navisphere


Manufacturing Companies.
All sizes of the manufacturing companies are potential users of this platform.
Companies like AVI that produces different types of foods can also make use of this
system when delivering their products to the respective customers, since they already
have good technological infrastructure it would be easy for them to use Navisphere in
local and international distribution.
Telecommunications companies.
Big telecommunication companies like Vodacom, which operate locally and
internationally, could be a potential user of Navisphere. Vodacom can use Navisphere
when transporting the network equipment to the sites. It would not be a challenge for
Vodacom to set up the software since they deal with smart phone devices.
Non-Asset based courier companies.
Companies which are non-asset based also a potential target for Nevisphere like e.g FX
international. Non-asset based company can just download the apps just like how a
customer would do it and start using the platform but at a charged rate per loads
depending on how big and how far the load is going. Non-asset based courier
companies’ fall under the logistics and transportation sector. The company could be
located anywhere in they could still make use of the Navisphere.
Third party Logistic providers
This Navisphere can also be used by big, medium or small 3pl companies to get loads
to deliver to customers and be paid by Navisphere like DSV, DHL etc .It allows for
different modes of transport to be used across various industries around the globe. As
long as the drivers and management have downloaded the app on their devices. Above-
mentioned companies could utilize this system very well since they operate in a number
of countries across the world.
Online Retail shops.
Navisphere can be used by small, medium and big online retail shops, which are
providing variety of products. This online platform allows to be used in a variety of
industries e.g., It could be used by Superbulist (Clothing retail) to get their product
delivered to their distribution centers then to respective customers weather locally or
internationally.

6. Good targets (potential users) for Freightview


The cloud-based software platform (Freightview) is perfect for small and medium-sized
businesses with limited logistics and transportation skills and knowledge. The
transportation management system would be good for companies less than the size of
Walmart. Such small and medium-sized firms ship less-than-truckload (LTL) freight, but
they could require truckload (TL) sometimes. For example, during December holidays in
South Africa citizens tend to celebrate and host events often. A livestock company will
have more products demand during such peak time and thus TL will operate to ship
more animals.
Although C.H Robison’s Freightview innovative technology approach to freight has led
to the company to the best FedEx Compatible Solution of the Year, its customers use
medium technological capabilities[CITATION EDE21 \l 7177 ]. There is a high volume of
Freightview customers within the construction, agriculture, manufacturing, and
wholesale trade industries as they often receive or ship few weekly shipments. These
companies use the technology provided by Freightview to drive improved performance,
visibility, and savings across supply chain through label generation, parcel rating and
tracking supported by Freightview. For instance, the St. Joseph-based livestock feed
supplement company in America adopted Freightview which reduced the hours
dedicated to organizing and pricing shipments and enabled the firm to accelerate the
number of sales. In addition, potential Freightview customers typically ship their goods
through labor-intensive, inefficient, manual process that ties up internal resources for
hours on a daily business day.
The supply chain technology of Freightview has helped SMBs significantly to respond to
the Covid-19 pandemic which increased disruptions in business industries. Freightview
customers with their limited technology were able to accelerate the need to digitally
transform their logistics operations and the multimodal transportation management
allowed for better solutions.
Freight view solves logistics problems through a cloud-based software platform hence
its customers are globally. Any firms from any geographical location can do business
with Freightview since the only thing required is internet connection for access.

7. The South African road freight sector (trucking industry).


South. Africa street network has the longest street network in the entire of Africa. The
South African National Roads Agency (SANRAL)is answerable for the structure and
upkeep of streets (FDK Transport, 2019). South African street cargo develops greater
and greater consistently. Street cargo in South Africa contributes to a great extent
towards the neighborhood economy regardless of the continually changing
administrative prerequisites like duties, grants, permit charges and petroleum
increments and diminishes (FDK Transport ,2019).
The shipping is quite possibly the most productive undertakings to get into in South
Africa. Shipping assumes a part in financial area by associating the stockpile to request
What is more, connecting other mechanical areas that are with South Africa
(Bizbolts,2019).
The shipping business is the solitary mode that considers products to arrive at their last
objective. Shipping in South Africa is basic towards the economy (Bizbolts,2019). South
African GDP is upheld to a great extent by shipping as it utilizes many individuals,
development of essential home-grown, trans border, and any worldwide cargo (Bizbolts,
2019).
The truck market size in 2019 expanded by 20% to 35, expanding the third time in two
sequential long periods of a decrease. The market esteem increments at a yearly
normal of +15% from 2007 to 2019. There were a couple of variances however the
example remained stable over a couple of years (Index box, 2021).
Size
The shipping business has a high number of developments in the street cargo area.
Gauteng, KwaZulu Natal, Western Cape and Mpumalanga having the most
development of trucks inside they territory (African Business information ,2016). The
Road Freight Association (RFA) revealed using the Statistics SA Land Transport
Statistics that half of products get moved by Trucks, the all-out pay of the segment
trucks takes is more than 125 Billion (African Business information ,2016). Trucks in
South Africa are liable for 3.7% of the nation's GDP. Stellenbosch University Logistics
Barometer in South Africa expressed that the truck business is answerable for 362
Billion Ton-kilometers inside the street cargo area which ends up representing 221
Billion ton-kilometers or 61 % which is stalled as follows:
 Long distance going between significant urban communities: 96 Billion ton -
kilometers
 Metropolitan networks that are inside the significant urban areas: 76 Billion ton -
kilometers
 Rural territory and all significant distance halls or metropolitan organization: 49
Billion ton-kilometers
Condition of the Industry and Competition
The shipping business assumes a significant part in the street cargo industry they are
significant parts in the areas of the South African economy farming, fabricating, auto,
materials, mining, petrochemicals, drugs, and retail (African Business information ,
2016).
Rethinking of all inventory chains exercises are centered around capacities which take
into consideration development inside the street cargo industry. Trucks involve half of
the transportation in South Africa as there are many re-appropriating occur, significant
retailers like Spar and Shoprite checkers are retailers the deal with their own vehicles
are they own an enormous number of armada (African Business information ,2016).
There are consolidations and acquisitions that occur consistently locally and globally.
The shipping business has been described by combinations, that has administrators
who are notable in the business (African Business information ,2016):
• Bidvest
• Imperial
• Unitrans
• Supergroup
• Grindrod
• Crossroads
• Value Logistics and
• Laser coordination just to give some examples.
These notable administrators offer specific administrations, and they contribute on
building their armada which goes inseparably with the business and they customer
necessities (African Business information ,2016). The bigger and grounded coordination
organizations make acquisitions to expand admittance to their new business sectors a d
to consider broadening into new ventures (African Business information ,2016).
The South Africa’s infrastructure impeding competitiveness, the infrastructure is not in
good condition which is also an issue for trucks as it puts them in the top end of pricing
(In News, Truck and Freight publications ,2017). Initiatives that are introduced by the
Government such as Durban Dig –out Port and Tambo springs in Ekurhuleni are
initiatives that are heading towards the right direction, but the predominant form of
delivery utilize road infrastructure as opposed to rail transportation (In News, Truck and
Freight publications ,2017).
The cost of all the physical logistics is very expensive, the size of South Africa results to
a distance that cargo needs to move from one point to another take long from one
departure to reach its destination (In News, Truck and Freight publications ,2017). The
major cost for all trucks over time is the cost of fuel, toll gates, all the wear and tear of
the vehicle, tyres etc. add expensive costs in all the operations of Trucks (In News,
Truck and Freight publications ,2017).
The trucking industry collaboration needs more consideration, cargo vessels have all
increased they size, this means it is cheaper to be able to move cargo from one point to
another with costs being shared for a single trip. Trucks are only able to carry one or at
most two containers, this makes it expensive. Exporters and importers need to come up
with a more considerate consolidation (In News, Truck and Freight publications ,2017).

8. The idea for C.H Robinson to approach other companies (Private) fleet
It is a good idea for C.H Robinson to approach other companies, as they can enhance
the growth of customer base, enhance more business opportunities, new business
partnerships and ventures. They are also looking to ensure that the other companies
supply chain is operating smoothly. This also ensures that the companies gain
competitive advantage. The customer satisfaction is going to be improve customer
satisfaction, and as well as of response time, service, and reliability. The TSM can
assist the firms, by fortifying and improving the reliability and visibility. TSM improves
the scales, information to gain competitive advantage. The companies’ can book their
freight using a tablet and mobile, without begin an expert in that field. The technology
system has improved the response time of the business to the market. The Navisphere,
also allows the companies to trace, track, monitor their documents, reports. It also
provides the company with real time order and the shipment order, such as proactive,
prescriptive, and predictive analysis. The TSM technology assists the small firms to
enhance their business growth, by offering them an opportunity to buy worldwide, an
improved quality of carriers and as well as tracing and tracking shipments. The
technology platform also offers the firms to establish and retain, by meeting the
requirements of their customers. The firms use TSM that is offered by C.H Robertson,
to select the most suitable carrier and they can also find various combination of
suppliers, on time to meet the needs of their customers at a reasonable price.

9. The C.H. Robinson TMS solution from an internet of things (IoT)


The Internet of Things (IoT) is a network that connects everything to the internet using
required protocols and information sensing equipment to handle information exchange
and communications for smart recognitions, positioning, tracing, monitoring, and
administration Patel et al. (2016:pg 6122).
IoT provides real-time access to consumers, resulting in increased efficiency and
customer loyalty. IoT and real-time methods allow improved supply chain management,
preparation, quality assessment, and decoupling of information characteristics. When it
comes to C.H. Robinson, Customers may use the Navisphere framework to handle all
their transportation needs, helping them to increase supply chain visibility, streamline
business processes, communicate with service providers and consignees, and collect
strategic data and reporting to assist in decision-making. Customers can request quotes
and submit freight tenders at any time, with precise freight specifications, increasing
customer loyalty and allowing for easy customization of customer deliveries. Tenders,
shipment specifics, and facility profiles can all be pre-defined, as can business
processes to ensure consistent data capture and order lifecycle event timing. To
prevent duplication or orders being skipped, data integrity is critical in the supply chain
and the Navisphere system a solution for that problem.
IoT implements programmed inspection of goods receipt, following out-of-stock
merchandise, on-going stock tracking, and a variety of other tasks. It provides
automated toll and fare collection solutions, which minimize traffic and queues on roads
where the customer has identified preferred carriers, either LTL or TL carriers.
Freightview automatically obstructs tariffs of LTL carriers that are part of this package
once it has been identified. This means that once the initial setup is complete, the
customer only needs to provide the freight details to Freightview once, and it will
automatically receive quotes from all the LTL carriers.
Inventory management- It has been discovered that misfortune in sales is often
recognized when a customer cannot find the required item in the racks and returns
without it. With the Navisphere can be incorporated with a customer's ERP framework to
simplify workflows between transportation and other business processes, giving
customers further leverage over their supply chains and allowing them to access
transportation data for various analytics. This allows for careful preparation in terms of
delivery timing so that the company does not run out of the product, which may lead to
customer dissatisfaction.
Increased visibility in monitoring systems-The Intelligent Transportation Framework can
be used to update the transportation system with the help of IoT. (ITS). Skabardonis
(Skabardonis, 2008). C.H Robinson makes use of The Navisphere that is
interconnected to contract carriers' freight tracking systems, which normally use GPS to
enable customers to monitor the progress of their freight in Navisphere. The device also
makes use of the cellphone GPS capabilities to send location information to C.H
Robinson on a regular basis. Drivers can use the app to send load documents after
delivering a load.
How does it bring innovation to road sector?
Decision-making that is faster and better – Some decisions can also be pre-
modified/automated based on sensor inputs obtained at the edge. Using a network of
machines, knowledge, and people, triangulated analysis and forecasting can be near to
reality until an issue occurs. It empowers speeds and better nature of observing,
processing, and controlling when necessary, resulting in lower costs and compelling
management of entities/environment/product.
References
African business information (2016), Who owns whom (Pty) Ltd Freight transport by
road Available from: https://www.whoownswhom.co.za 

In news truck and freight publications (2017), 6 considerations to keep Sa competitive in


freight forwarding and logistics. Available from: https://truckandfreight.co.za/6-
considerations-keep-sa-competitive-freight-forwarding-logistics/

Kashish Ara Shakil. (2020). Internet of things (IOT) concept and application. (S. Khan,
Ed.) India.p46, p480-526
Patel, K.K., and Patel, S.M., 2016. Internet of things-IOT: definition, characteristics,
architecture, enabling technologies, application & future challenges. International
journal of engineering science and computing, 6(5).
Prairie, E. (2021). C.H. Robinson’s Freightview Technology Platform Named
Compatible Solution of the Year by FedEx. Bloomberg, 33-37.

You might also like