Echo Global Logistics [NASDAQ:ECHO]: Customized, Technology-Enabled Transportation Management Services

Doug Waggoner, Chairman & CEO, Echo Global LogisticsDoug Waggoner, Chairman & CEO
Founded in 2005, Echo Global Logistics [NASDAQ:ECHO] began with one objective— to simplify transportation management. Echo uses its in-house technology and team of logistics professionals to connect businesses that need to ship their products with carriers who transport goods quickly, securely, and cost-effectively.

“The challenge for third-party logistics providers is to offer differentiated services supported by advanced technology,” says Doug Waggoner, Chairman and CEO at Echo. The company has grown exponentially since its founding, proving itself a valuable logistics partner partly through its technology. Its customized transportation software simplifies the critical tasks involved in transportation management, such as choosing the ideal carrier for a load, tracking shipments, and identifying efficiencies.

“We’re a services and technology company,” says Waggoner. “We move over 14,000 shipments every day using our network of over 40,000 carriers, so we have to rely on our technology to ensure everything is done efficiently. Our proprietary technology, which we developed in house to serve the precise needs of our clients and carrier partners, optimizes our shippers’ supply chains and helps our carriers utilize their capacity.”

As an industry leader, Echo provides clients access to capacity in all modes of transportation, including full truckload, less than truckload (LTL), partial truckload, intermodal, expedited, and international air and ocean. The complexities of shipping procedures mean decision-making needs to be as informed as possible. Echo’s technology provides the up-to-the-minute information that guides decision-making on transportation modes, routing rates, and load planning.

Since LTL shipping rates, specifically, are determined by factors like pick up and destination zip codes, class, and weight, the rates vary, but the expertise of the Echo team makes it a lot simpler. “Echo offers clients optimized LTL rates negotiated by our sourcing team,” says Waggoner. “And these rates are lower than they can negotiate themselves.

Our proprietary technology maximizes customers’ transportation spend with easy-to-use, scalable tools

At the same time, clients receive a very high level of service. Our experienced team and our technology work together to provide this exceptional service.”

Powered by proprietary algorithms and in-house technology, Echo also offers complete supply chain visibility— including carrier sourcing and step-by-step shipment tracking. This real-time information leads to optimized carrier selection, enhanced KPIs, intelligent business decisions, and improved invoicing and payment procedures.

Businesses produce massive amounts of data, and Echo works to turn the data into useful insights. Contracted Managed Transportation solution clients receive an audit of their transportation activities, and then the Echo team gets to work analyzing the data, searching for efficiencies, and executing to create an optimized supply chain. Echo’s scalable and flexible technology can also integrate with a client’s existing ERP system.

Culligan, a global water treatment products company, worked with Echo to meet its complex transportation requirements. Echo integrated its technology platform into the Culligan system, allowing Echo representatives to not only select appropriate carriers for over 100 daily inbound and outbound shipments but also track the shipments and ensure on-time pick-ups and deliveries. Jon Backes, Culligan’s Director of Operations, called Echo an extension of the Culligan team and praised Echo for providing technology solutions that allow Culligan to focus on its business while letting Echo handle its logistics network. And with or without integration, Echo’s technology enables its team to handle load tender, track and trace, data management, order processing, invoice auditing, and bill payment.

Looking ahead, Echo plans to keep innovating its technology to provide the best transportation solutions for every client. “We have a lot to look forward to, technology-wise,” says Waggoner. “We’re going to continue growing, and our technology is going to help get us there.”