Helping maximize asset utilization, achieve cost synergies, reduce carbon emissions and improve lead times by matching shipments with available carriers
- Coyote¹ matches companies and organizations’ shipments with available carriers, trucking companies and fleets of large enterprises.
- Chicago-based Coyote Logistics arranges transportation of freight shipments for more than 35,000 shippers across the US, Mexico and Canada.
- Revenues for Coyote have been growing by double digits each year, reaching $2.1 billion in 2014. Following its acquisition by UPS at a valuation of $1.8 billion, Coyote operates as a subsidiary of UPS.
- The core innovation at Coyote is the use of a complex, proprietary algorithm to pair empty trucks with cargo.
- A centralized business model coupled with proprietary technology tools enables Coyote’s employees to have full visibility of the network, helping them manage each transaction in an efficient manner.
- Coyote differentiates itself from other companies by guaranteeing shipment of every load it accepts.
- The company’s focus on hiring young college graduates develops a workforce which is open to new idea and methods.
- Despite being in a traditional industry, Coyote functions like a start-up – creative, fast moving and high energy.
- Coyote says that in 2014, it eliminated 31 million ‘empty’ miles, avoided 56,300 tons of CO2 emissions.
- Coyote helps companies optimize their inventory levels; for instance it helped Teknor Apex reduce stock outs and saved them $600,000 a year.
- Coyote helped Heineken reduce its order lead time from brewery to the shelf from 10 weeks to seven days.
- Coyote helps companies streamline their processes, providing greater visibility and leading to more efficiency.
- Coyote’s business model sets it apart from competitors. Breaking away from the traditional brokerage model, it separates its sales functions from its carrier arrangements.
- Embracing the latest internet-based tools, including social media platforms, as well as proprietary technology including the Coyote App, helps streamline interactions among drivers, shippers, and the company itself.
- Coyote handles the challenge of getting the right talent by hiring young people who are new to the industry, putting them through a rigorous training and apprenticeship programme, and promoting from within where possible.
Coyote is one of more than 100 case studies identified as part of the World Economic Forum’s Digital Transformation of Industries initiative. An overview of the DTI program can be found here.
1. Source: Coyote, UPS, WEF/Accenture Analysis