Dive Brief:
- ArcBest’s use of artificial intelligence is delivering significant growth for the company, executives said in a Q2 earnings call last week.
- The transportation company is using AI and predictive analytics to optimize labor planning, delivery routing and dock operations in real-time, CEO and Chairman Judy McReynolds said on the call.
- "These tools are reducing costs, improving service and enhancing flexibility across our network," she said.
Dive Insight:
Chief Strategy Officer Christopher Adkins is leading ArcBest’s strategy and optimization team, which continues to deliver high-impact improvements, President Seth Runser told analysts.
“In the second quarter, the team performed a deep dive on truckload operations, where they identified inefficiencies tied to external load boards. While these boards improve buy rates, they also generate low-value inbound calls,” Runser said.
In order to address the issue at hand, the company enhanced its automated call routing system using AI, which aims to prioritize high-value inquiries and improve carrier support. “This boosts productivity and is scalable across the business,” he said.
Early during Q2, ArcBest launched multiple pilot projects aimed at automating routine tasks in its truckload and service center operations.
Additionally, a dozen locations are beginning to use predictive AI to anticipate where drivers are needed most, Runser said.
The company has also reduced less-profitable lanes in its truckload segment.
“Shipments per day were down 7% as we strategically reduced less-profitable Truckload volumes, offsetting double-digit growth in our managed solutions,” CFO Matthew Beasley said.
Besides reducing lower-margin freight, ArcBest is focusing on small and midsized businesses. Still, Runser said, the company is in the early stages of productivity improvements and expects greater strides.
“We've added a lot of sellers in the SMB space within Truckload, and we're seeing them hit their ramp and actually exceed expectations, but we're kind of early innings there,” Runser said.
