Lorykeet provides freight forwarders with the ability to more confidently predict freight shipping prices in a spot pricing market so that they are equipped to negotiate the best spot price with their Carriers, increase profit margins and reduce tender rejections.
In the transportation industry, freight shipping spot market pricing is fragmented, chaotic and volatile. The traditional manual approach to spot price prediction and freight procurement contracting is inadequate. Shippers and freight forwarders need and want a better way to understand spot price volatility and negotiate from a data-driven position.
Lorykeet teamed up with Kale Logistics (KL), a leading global provider of IT solutions in the Cargo and Logistics industry. Lorykeet ingested KL’s freight pricing data across freight segments, carriers, freight categories and many more data points and combined it with external spot pricing benchmark rates to discover and predict hidden patterns and insights to predict an end spot price.
Using Explainable AI (XAI), Lorykeet was provided the freight forwarder insights into the reasons behind each spot pricing prediction. This serves as a powerful tool during carrier negotiations. Lorykeet’s Counterfactual (i.e., “What If”) Capabilities provided actionable insights on different pricing strategies and scenarios predicting the optimal spot prices to be used in negotiations with the Carriers. Lorykeet’s platform enabled increased margins as freight forwarders were able to secure spot capacity at a favorable price point. In many cases they were able to pass the savings onto the shippers. This in-turn helped drive volume for the Kale Logistics freight marketplace platform resulting in increased revenues.
One of the key concerns for Kale Logistics was over-reliance on AI and Machine Learning automation to provide predictions and recommendations that the freight forwarder can trust. Lorykeet’s platform addressed this concern with its “Human in the Loop ” capabilities which supported human insights and oversight in the decision-making. Lorykeet provided human-machine interaction embedded in the workflow so that the decision making process can take into account human experience and the overall context.
Because of the high degree of variability, the volume of diverse yet relevant data points, and the natural human resistance to machine learning driven predictions, the spot freight market use case was a great fit for Kale Logistics in the use of Lorykeet’s AI governance platform.