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How Coyote is Disrupting the Traditional Brokerage Model to Better Serve Our Customers and Our People

An inside look at Coyote’s recent strategic operational changes with COO, Patrick Campbell

For the past 15 years, Coyote has been committed to delivering on our promises, no matter what.  

This commitment to providing reliable service has helped propel us from a small Chicago-based tech startup to the leading global logistics provider we are today. Our commitment to delivering a best-in-class experience to our network will remain an integral differentiator for our business in the future. But while our laser-focus on service won’t change, the way we deliver it is evolving.

“We’ve accomplished a lot based on a model that was developed to provide superior service and a better experience for our network... I’m incredibly proud of this [15 year] milestone and how our business has advanced since 2006 while retaining what really matters: empowering our people to solve complex problems and building trust through reliable action.”

–Jonathan Sisler, Chief Executive Officer, Coyote Logistics

It’s time to rethink the traditional brokerage model and take a smarter, more direct approach to putting our customer network first to set our people and entire global network up for short- and long-term success. 

 

Leveraging Artificial Intelligence to Take a Market-Cost Approach

Coming out of a challenging 2020, we’re approaching this year as an opportunity to evolve. The last 12 months have been difficult for the entire industry, and it’s clear that we can maximize our agility and resiliency for the thousands of shippers and carriers who rely on us every day by thinking about our model differently.

One example is taking a market-cost approach; one that doesn’t incentivize volume and gross margins, but instead accurate rates and optimal matches. Coyote recently implemented strategic and structural changes across our U.S. operations to better align our two greatest assets – our people and our technology – to achieve higher quality matching and better service to our network.

This approach utilizes AI and machine learning to more accurately predict market rates and provide competitive pricing across our modes. By aligning our people around this new structure, we are standardizing our approach to drive out inefficiencies, reduce the time it takes for new representatives to access variable compensation and remove bottlenecks to support our network more productively.

“Our vast dataset enables our industry-leading digital platform to leverage artificial intelligence and machine learning algorithms that can learn patterns to allow us to work smarter and faster. Arming our people with these technology-enabled insights allows them to be even more successful within their roles and to serve our customers better than ever before.”

–Matt Gonterman, Chief Technology Officer, Coyote Logistics

This approach is already demonstrating its potential impact. Just one month after implementing these operational shifts, we’ve seen more Coyotes achieve commission milestones than in all of Coyote’s history.

 

Doubling Down on Tech + Humanity

In 2019, we conducted research that concluded the optimal balance of technology and human expertise in a supply chain is 60% and 40%, respectively. This balance enables technology to automate operational tasks, such as obtaining quotes and booking shipments so that people have time to focus on the things they do best – leveraging their expertise to serve customers and build the strategies and plans that maximize cost-savings and efficiency.

”By combining an engaged workforce with advanced tech capabilities, we are uniquely positioned to offer customers the ideal balance of human expertise and digital solutions that empower business growth."

–Jonathan Sisler, CEO, Coyote Logistics

Coyote has taken this balance to heart in everything we do. We value our people and understand the critical role they play in supporting our customers and network carriers. That’s why we’re creating more specialized teams through award-winning hands-on training, and carefully bringing reps back into our offices in alignment with CDC protocol.

On the technology side of this balance, we’re leveraging machine learning to inform market pricing and continuously investing in improvements to our proprietary technology. This year, we’re focusing on enhancing the existing experience that thousands of members from our network have on CoyoteGO®, our digital freight platform, while also launching new features such as:

CoyoteGO® for Carriers:

  • Smart matches 
  • Dynamic load board
  • User experience improvements to facility ratings, parking and detention

CoyoteGO® for Shippers:

Engraining our Tech + Humanity philosophy into every aspect of our operational approach is allowing us to provide a better experience for our people and network.

 

Always Forward, Together

While change can be intimidating, navigating the past year has reinforced the importance of strategic evolution, especially in such a unpredictable marketplace.

I have a lot of conviction behind the new strategies and operational changes we’re rolling out this year and in the years ahead. It will require diligence and an ongoing commitment to change management, but I’m confident in our people across every department, level and market and their ability to adapt.

The pandemic has given us the opportunity to reflect on the resiliency of our model and our people at a critical time in our company’s history. As we look at the next 15 years, this evolution of our operational strategy is setting Coyote, our people and our network up for short- and long-term success. We look forward to continuing to serve the supply chain community better than ever before.

 

About the Author

Patrick Campbell serves as Coyote's Chief Operating Officer for the U.S. market. In his role, Patrick oversees the company's carrier sales and operations, shipper operations, LTL and intermodal services.

Profile Photo of Patrick Campbell