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The Importance of Investing in Technology, Even During a Down Market 

Logistics Technology

We’ve all had to carefully manage the freight recession that has continued to beleaguer our industry. While shippers reap the benefits of lowered freight prices, we’ve also seen some carriers and brokers go out of business. Although freight naturally goes through cycles, we hope to avoid a market that tilts too far out of balance for too long. Despite the current market, those who invest in technology and AI now will see a significant difference in enabling operational efficiencies and cost savings as we come out of the current cycle. 

Though our business has skillfully handled the freight recession, uncertainty continues as to when the industry will see a balanced freight environment. Like many other logistics providers, Echo recognizes the difficulties of the freight recession. However, we’ve taken the opportunity to continue to invest in cutting-edge technology to be prepared for when the market turns. Each year, Echo invests upwards of $70 million on technology, with a focus on improving our products and solutions for our shippers and carriers.  

Although AI and machine learning are not new, current uses are now more applicable to our industry. For example, Echo has eight AI projects in beta, testing, or fully scaled. One such project applies AI to email price quote requests. With more than 1 million emails coming into Echo each day, utilizing an automated system to flag requests for quotes and gather pricing enables sales representatives to respond quicker. Through tools such as this, Echo is able to be competitive in the marketplace and offer high quality service.  

The ongoing and future use of AI in Echo’s technology allows our company to be as streamlined as possible. Automation doesn’t have to replace jobs; it simply enables us to become more efficient. If a sales representative can save 20% of their day by utilizing an AI tool to review pricing, they can use that extra time to better take care of their clients while bringing in new ones. Our operations department can also be better equipped to manage more loads per day. As our volume increases, as it has over the past year, we won’t need to scale up as many people to handle the increased demand.  

It can be difficult to be positive in an extended market downturn, but there are reasons to be optimistic as we look ahead to the future. Despite the challenges of the past year, it’s an incredibly exciting time for logistics and transportation. Investment in technology has honed our skills, preparing us for the upside to come. Experts have said that we’ve hit the bottom of the cycle. Others are hoping to see signs of a future shift upwards as we progress into the new year. When the market does shift, we’re excited about leveraging our new technology and AI as well as our dedicated transportation experts that help shippers meet increased demand and take care of carriers we’ve helped throughout the downward cycle.  

To learn more about Echo’s transportation solutions, visit www.echo.com or contact an Echo representative today at 800-354-7993 or info@echo.com.  

For informational purposes.