Brian Smith, CEO, Lance Healy, Chief Innovation Officer
Managing domestic freight is a complicated affair with an aversion to change. Since its inception over 15 years ago, Banyan drove technology into the process. One of their most important innovations is Live Connections, which allows for real-time processing and negotiations, resulting in lower prices to ship goods and better yield for carriers.
Live Connections doesn’t tear apart the freight management industry, but rather enhances the relationship with carriers. Traditionally, shippers and carriers squared off each January to negotiate the best possible deal for the year. That data is inferred to build a routing guide for their outbound shipments and inbound vendors. Routing guides blind shippers from the best possible carrier, and limit carriers’ abilities to reflect adjustments as their networks change. “Both parties are trading perceived operational efficiency for potential profits,” says Banyan Technology co-founder and Chief Innovation Officer, Lance Healy.
Banyan’s Live Connections offers the chance for clients to save money in three ways. First, Banyan shows shippers the negotiated rates from their carriers on every shipment. Banyan replaces a static table with a live routing guide that pulls their contracted rates instantly. This not only delivers visibility to the right carrier on every move—resulting in 10- 15 percent savings—but it also sets the stage for the second savings opportunity: upgrading the traditional annual RFP process.“The idea of renegotiating rates monthly through a traditional RFP borders on impossible, but that too has evolved dramatically with Live Connections,” says Brian Smith, CEO of Banyan Technology. Banyan generates reports delivering unprecedented business intelligence that customers may share with their carriers about the business they weren’t awarded.
We help convert data into actionable information that has never been available to shippers and 3PLs
The invitation to the carriers is not to discount all lanes, but surgically target those lanes that they service well and can be competitive on.
“The advantage of Live Connections is that as the shipper approves the lane specific adjustments, it is immediately available to start saving,” Smith continues. “There are no static tables to license nor routing guides to update. And because shippers aren’t hosting tables, they can invite carriers to set up the agreements on whatever base rates can be most aggressive, rather than forcing them to quote off an averaged industry rate.” Healy adds.
The third area where Banyan delivers efficiencies through technology is on the freight bill management and auditing arena. Rather than paying a third-party auditing company to review rates after the transaction, Banyan offers the option to collect and compare freight bills to the quote automatically. The applications detect discrepancies such as duplicate invoices. “Let the computer do the work,” says Healy. “Clients can keep the data in-house and eliminate a huge expense.” Traditional freight audit companies can’t keep up with weekly or monthly changing tariffs. “Their infrastructure isn’t set up for that frequency of change,” Healy stresses.
According to Banyan, their main appeal is the opportunity to get real-time, up-to-date information. “The real value of APIs,” says Healy, “Is not to just change your processes, it’s to tighten your relationship with your carriers.”
According to Smith, “The shift to Live Connections grew steadily and 2017 is expected to tip the scales. While other start-ups and industry incumbents are beginning to explore API connectivity, Banyan provided Live Connections for over 15 years, and APIs are just one part of Live Connections.” Healy says, “We can’t wait to show you what’s next!”