Anheuser-Busch (AB InBev) Brews Up Spot Freight Savings with Transporeon Autonomous Procurement
About Anheuser-Busch
Anheuser-Busch is the world's leading brewer, with a commitment to building a future that everyone can celebrate and everyone can share. The multinational drink and brewing company is always looking to serve up new ways to meet life’s moments, dream big to move our industry forward and make a meaningful impact in the world.
Anheuser-Busch chose to rewrite its own history when faced with new levels of volatility resulting from the global pandemic. After a 45 day pilot proved double-digit savings were possible on spot buying, the multinational drink and brewing company was more than ready to embrace a change. Now, Anheuser-Busch is one of the best spot buyers in the freight market.
Challenging the status quo
Anheuser-Busch, one of the largest and most sophisticated spot freight buyers in the world, had designed a best-in-class process to handle the high volumes of spot freight it procured. But in early 2021, it decided to challenge the status quo.
A new approach, driven by machine learning and AI, claimed to deliver better returns than could be achieved with a freight auction model. With Anheuser-Busch’s scale, the proposed savings could mean tens of millions of dollars in financial impact.
Amidst a global pandemic and one of the most tumultuous freight markets on record, the company rose to the challenge to test whether current processes could be beat.
The results
Anheuser-Busch’s gamble paid off. Since its initial test, the company has sustained double-digit savings along with measurable carrier engagement, lead-time-to- capacity, and internal staff effort improvements. The move has solidified Anheuser-Busch as one of the best spot buyers in the freight market and a pioneer in the next generation of logistics technology.
Cheers to managing exceptions
Autonomous Procurement works as an online marketplace for carriers to engage with Anheuser-Busch shipments. In contrast with Anheuser-Busch's old approach, all spot shipments are immediately accessible to Anheuser-Busch’s carriers to match instantaneously. As Autonomous Procurement is driven by machine learning, the process of pricing, counterbidding, and offer acceptance would also be fully automated — requiring intervention from Anheuser-Busch’s team only on rare exceptions.
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Anheuser-Busch was able to reduce team size significantly from between 3-5FTEs to just one FTE managing exceptions
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An incredible 10% reduction was achieved on spot rates
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Since implementing Autonomous Procurement, Anheuser-Busch was able to cut the time spend per load from 2+ hours per day to one short daily results review
Facts and figures
- Tens Of millions of financial impact
- Double digit Savings in a highly volatile freight market
- 80% Reduction in FTE requirement
- 10% Direct reduction on spot rates
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