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Introducing Convoy Just-In-Time: Guaranteed on-time delivery meets unmatched flexibility

Convoy News, Freight Services, Press ReleasePublished on August 10, 2023

Today, we’re excited to roll out Convoy Just-In-Time, our latest truckload freight service that guarantees on-time performance within 15 minutes of the scheduled delivery time. This novel approach to just-in-time delivery provides manufacturers and retailers with the service quality compliance they expect, but with unmatched flexibility to handle fluctuating demand. Convoy’s internal data shows that shippers using Just-In-Time can reduce their annual transportation costs by up to 11% while maintaining higher service quality levels.

For many automotive and industrial manufacturers, precise on-time delivery is a critical requirement for their supply chains to operate cost-efficiently. Shipments that arrive early or late can result in production shutdowns that cost these companies on average $22,000 per minute. Similarly, consumer product companies often need to adhere to stringent on-time delivery policies at retailers’ facilities or incur fines that can increase the cost of each shipment by thousands of dollars. These same retailers then face out-of-stock or out-of-shelf inventories and lose out on realized sales. Data from the Food Marketing Institute and the Grocery Manufacturers Association estimates the US retail food industry alone loses $15-$20 billion per year due to unrealized sales caused by stockouts.

The traditional challenge with just-in-time freight is that it relies on asset-based carriers whose operations lack flexibility. To meet the stringent requirements of just-in-time shippers while maximizing fleet utilization, these carriers need to plan weeks in advance to position their trucks and drop trailers, and optimize the routing of these assets. This rigidity often leads to an inadequate response when demand fluctuates—any surge in volume can result in the need for expedited carriers, who charge a premium for their services. In worst cases, delayed deliveries can lead to manufacturing production shutdowns and loss of revenue from stockouts and unrealized sales. The combined costs of these events can increase annual transportation spend by up to 11% (this figure doesn’t account for the losses incurred due to fines resulting from delayed customer deliveries).

Convoy Just-In-Time takes a novel approach to these challenges by harnessing our network of more than 400,000 trucks, our pool of telematics-enabled drop trailers, and our machine learning models that automate the shipment lifecycle. When demand fluctuates, we can reroute trucks and trailers to facilities nationwide within days, providing shippers with the service quality they expect from just-in-time services, but with a level of flexibility that virtually eliminates the need for expedited services. In addition to cost savings, this approach reduces operational burden at facilities, particularly for load planners who no longer have to scramble to find expedited carriers.

Based on the successful testing we’ve done with automotive and industrial manufacturers as well as CPG companies and retailers over the last year, we’re able to offer shippers a guarantee that we’ll arrive within 15 minutes of the scheduled delivery at least 98% of the time. In the rare event of an early or late delivery, we cover an agreed-upon portion of the shipper’s costs.

Carriers are required to use the Convoy app to haul with us, which means we have a 24/7 pulse on where the truck is and what it’s doing. We have achieved 99% carrier app connectivity which allows us to provide the most complete and transparent picture of shipment status and supply chain performance. We automatically collect 1,000 data points on every shipment and use it to power a sophisticated machine learning model that accurately predicts ETAs and proactively recovers from shipment disruptions. For shippers, all of this data comes together on the interactive Convoy dashboard, within their TMS, or through customizable email and text alerts.

If you’re curious to learn more about Convoy Just-In-Time, you can write to us or contact your account manager. 


Mitch Violett

Mitch Violett is a Sr. Director of Product and Engineering at Convoy. Before joining Convoy, Mitch was a product leader at Amazon, building the technology used by drivers across Amazon Flex and Amazon Logistics. He also served as an Industrial Engineering leader at Boeing and Nuclear Test Engineer at the Puget Sounds Navel Shipyard. Mitch earned his MBA at the University of Washington and his BS in Industrial Engineering from Montana State University.
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