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C.H.
Robinson - Transportation Management Specialists
C.H.
Robinson Operations Center
Eden Prairie, Minnesota USA
October 22, 2002
By
Evan Armstrong and Richard Armstrong
Main Contacts:
Mark Bowers, Director – Logistics
Services
Kevin McCarthy, Manager – Logistics
Services
Mark Walker, Vice President –
Transportation
Rick Kapsner, Global Sales and
Marketing Manager
C.H. Robinson Worldwide (Robinson) has grown from a small produce broker to a
transportation manager with over 140 offices and gross revenues exceeding $3
billion. The key to Robinson’s success has been its focus on non-asset-based
transportation management execution. Strong personnel and information systems
drive this approach. CHRW employs over 3,700 people worldwide and has over
15,000 customers, half of whom it maintains contracts with. Each branch office
has P&L responsibility, which facilitates decision making at the local level to
meet customer needs. Because of Robinson’s roots in produce, it has gained
strong skills in handling perishable and temperature controlled commodities.
In most customer relationships
Robinson is initially viewed as a transportation provider. Robinson develops the
majority of its logistics business by furthering relationships made though
transportation brokerage services. After working with the transportation
brokerage on a transactional basis, many customers strengthen the relationship
with Robinson and ask it to manage other aspects of their supply chain. This
process is now facilitated by Robinson’s additional focus on national accounts
sales. It now has twenty-one national accounts sales people.
The purchase of American Backhaulers (ABH), a non-asset-based third party
transportation provider, in 1999 brought with it strong transportation execution
systems. Robinson’s “Express TMS” has evolved from the ABH system with
additional functionality being added for order management and back-office
accounting functions. Approximately 250 customers are using at least 7 of the 8
functions of Express TMS, which are as follows:
Communication and visibility can be performed via the internet at CHRWonline.com
and CHRWtrucks.com. The primary functions of Express TMS are displayed in the
chart below.
Chart
1: CHRW Systems
Overview - Primary Functions
When the OMS system is deployed for customer management, roughly ninety percent
of all customer orders are entered electronically into the order management
system (OMS) either through EDI, XML, web or ERP system interfaces. Orders are
then consolidated into larger shipments and truckloads by comparing service/cost
relationships. Individual customer profiles contain negotiated rates and pricing
matrices.
COMPASS provides customers with
visibility to inventory and incorporates event management to streamline purchase
order generation, replenishment and overall sourcing. COMPASS is currently being
used by two large retail customers.
Customer’s warehouse management
systems (WMS) are integrated into Robinson’s systems, or are linked to
Robinson’s systems via High Jump, a commercially available WMS system. High Jump
provides integrated WMS functionality with inventory tracking, pick ticket
generation, and RF integration capabilities.
Load management leverages Robinson’s
strong contract carrier base and provides TMS execution and event management for
multiple modes. Every order in Robinson’s system is tracked daily and exceptions
that could impact required delivery dates are proactively communicated and
managed.
Reporting and analysis is being
migrated to Microsoft OLAP cubes and reporting and away from COGNOS. Microsoft’s
reporting program tends to be less expensive and more straight-forward to use.
Future features for Express TMS
include dynamic mode conversion/optimization and transportation cost allocation
at the order level.
In the process of continually
improving its TM business, CHRW is also expanding its related businesses.
Intermodal operations are also expanding as a low cost alternative for demanding
shippers. Robinson’s NVOCC & freight forwarding operations are expected to
triple over the next decade. In Europe forwarding operations are growing
alongside Robinson’s successful brokerage business. T-Chek, CHRW’s service for
driver’s and small trucking companies continues to expand. T-Chek covers fuel
purchases, reporting, advances and related activities.
All of this leads us to expect more of the same from CHRW—more innovation,
creativity and industry leading profitability.
...Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion, Armstrong
& Associates, 3pl logistics, 3pl 4pl, 3pl operations, CHRW, chrw, ch robinson,
CH Robinson, C.H. Robinson, transportation management, American Backhaulers,
american backhaulers, top brokers, transportation brokers, transportation
brokerage, order management, TMS, domestic transportation management, domestic
transportation manager, order management system, oms, mode conversion... |
