John Deere Awards Transportation Management Contract to TMC
C.H. Robinson Worldwide Inc. has been awarded a five-year contract to centrally manage John Deere's North American freight. C.H. Robinson is one of the largest non-asset based third party logistics (3PL) companies in the world, providing global multimodal transportation services and logistics solutions.
C.H. Robinson's Transportation Management Center ("TMC"®), a division of C.H. Robinson, will provide technology and transportation expertise for John Deere's North American inbound and outbound freight within TMC's operations center in Chicago, Ill. John Deere will retain carrier selection and rate negotiation using TMC®'s planning, execution, and business intelligence tools to enhance their control and capabilities.
"We are very excited about our continued collaboration with John Deere," said Jordan Kass, director of C.H. Robinson's TMC®. "Both John Deere and C.H. Robinson are leaders in their industries; the combination of our expert people, industry best practices, and technology has paved an innovative path that is emblematic of both organizations' leadership."
Kass said that the second phase of the project included John Deere's inbound network. C.H. Robinson worked closely with John Deere to implement its On-Demand TMS, which enables collaboration with all trading partners via the Internet. The company's technology helped John Deere capture the order level information they needed to plan, optimize and control their shipments.
"We had already implemented John Deere's outbound network," Kass said. "Connecting their inbound network was a natural progression that enabled visibility, control, and collaboration across North America. Our speed of implementation and on-demand fee structure accelerated John Deere's return on investment. Software packages that are installed or require large capital investments simply cannot provide the same roadmap to ROI."
C.H. Robinson works with more than 25,000 customers ranging in size from Fortune 100 companies to small family businesses in a variety of industries. C.H. Robinson's top 100 customers represent approximately one-third of its total gross profits, with their largest customer representing approximately three percent of total gross profits.
About Managed TMS:
Our Managed TMS Services provide shippers with expertise and technology that drive both immediate and sustained cost savings throughout their transportation networks. Core components of this service include Six Sigma-based process engineering, advanced TMS technology and onsite TMS power-users, who serve as an extension of the shipper's staff. C.H. Robinson offers Managed TMS services through the Transportation Management Center (TMC), a global business unit with offices in Chicago and Amsterdam. TMC does not generate revenue by handling freight. It collects fees for technology deployment, day-to-day TMS operation and ongoing process optimization. Over the past 10 years, TMC has exceeded client expectations for savings, productivity, supply chain improvements, and carbon footprint reduction. For more information, visit http://www.mytmc.com/.
About C.H. Robinson, Worldwide, Inc.
Founded in 1905, C.H. Robinson Worldwide, Inc. is a global provider of multimodal transportation services and logistics solutions, serving over 25,000 customers through a network of 218 offices in North America, Europe, Asia, and South America. C.H. Robinson is one of the largest third-party logistics companies in the world, with 2006 gross revenues of $6.6 billion. For more information about our company, visit www.chrobinson.com.
