With millions of moving parts, automotive supply chains are incredibly complex, but poised for improvement through collaborative technologies. That's why we're partnering with FreightVerify, a cloud-based supply chain technology company, to radically transform how the automotive industry streamlines their logistics and supply chain.
We have already conducted testing programs with two auto manufacturing companies. As a result, we learned that tracking technology significantly boosts supply chain efficiencies. By teaming up with FreightVerify, and linking our complementary capabilities, we can now together deliver a powerful commercial solution to the industry.
To achieve this objective, it is necessary to gain real-time visibility of all the various shipments across the supply chain ecosystem. With our collaboration with FreightVerify, we intend to offer to manufacturers two benefits. In the first phase, we will provide a comprehensive solution for real-time tracking. In the second phase, we will provide the convenience of the on-demand economy to the manufacturing supply chain: for the first time manufacturers like auto makers will have the ability to share freight loads on-demand.
Through our collaboration with FreightVerify, companies will use real-time tracking technologies and analytics to keep close tabs on inbound and outbound logistics. In other words, manufacturers will be able, in real-time, to track inbound materials and parts from origin to ocean container, to train car, to truck, to warehouse; track materials as they move within and between production sites; and track finished vehicles as they move from factory floor to dealerships, fleets, and other end customers.
On-demand load sharing services
According to the MIT Center for Transportation and Logistics, enabling freight matching services over a network will help manufacturing companies reduce costs by more than 24%. These services will allow the optimization across the many fragmented logistics networks in place today, in addition to enabling carriers to optimize their own operation, reducing supply chain costs even further.