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Source: Wikipedia
OPERATIONS: Transportation and Logistics Services
C.H. Robinson provides freight transportation and related logistics and supply chain services. Their
services range from commitments on a specific shipment to much more comprehensive and integrated
relationships. They execute these service commitments by investing in and retaining talented employees,
developing innovative proprietary systems and processes, and utilizing a network of contracted
transportation providers, including, but not limited to, contracted motor carriers, railroads, and ocean
and air carriers.
They provide the following transportation and logistics services:
Truckload: Through their contracts with motor carriers, they have access to dry vans,
temperature-controlled vans, flatbeds, and bulk capacity. Through the use of Navisphere, they
connect their customers with contracted motor carriers that specialize in transportation lanes and
product types, and they help contracted motor carriers to optimize the usage of their equipment.
LTL (Less Than Truckload): LTL transportation involves the shipment of single or multiple
pallets of freight. The company primarily focuses on shipments of a single pallet or larger,
although they handle any size shipment. Through their contracts with motor carriers and use of
Navisphere, they consolidate freight and freight information to provide customers with a single
source of information on their freight.
Ocean: As a licensed Non-Vessel Ocean Common Carrier (“NVOCC”) and freight forwarder,
they consolidate shipments, determine routing, select ocean carriers, contract for ocean
shipments, and/or provide for local pickup and delivery of shipments.
Air: As a certified Indirect Air Carrier (“IAC”) and freight forwarder, the company organizes air
shipments and provides door-to-door service.
Customs: The firm’s customs brokers are licensed and regulated by U.S. Customs and Border
Protection and other authoritative governmental agencies to assist importers and exporters in
meeting regulatory and operational requirements governing imports and exports.
Other Logistics Services: They provide intermodal transportation service, which is the
shipment of freight in containers or trailers by a combination of truck and rail. In addition, we
provide fee-based Managed Services, warehousing services, small parcel, and other services.
Strategy:
(16TH FEB,2022) C.H. Robinson and Waymo Via, the trucking and local delivery unit of
autonomous driving technology company Waymo, have formed a long-term strategic partnership
to mutually explore the practical application of autonomous driving technology in logistics and
supply chains. The partnership combines the benefits of Waymo’s innovative autonomous
driving technology, the Waymo Driver, with C.H. Robinson’s Navisphere technology, which is
the world’s most-connected logistics platform.
The collaboration will focus, initially, on running multiple pilots in the Dallas-Houston
transportation lane, with Waymo Via autonomous trucks hauling C.H. Robinson’s customer
freight. During and after the pilots, the companies will collaborate to shape the future
development and expansion of autonomous driving technology as an additional transportation
solution. This will provide much-needed capacity, help improve the carrier and driver experience
and address the business challenges posed by long-term driver shortages.
Financial Analysis:
C. H. Robinson has reported its 2021 full year financial results, the company experiencing a strong year,
with total revenues increasing by 42.5% to $23.1bn. Operating income was up 37.8% to $1.08bn, with
profit margin rising slightly from 4.15% in 2020 to 4.68% for 2021.
Changes made to strategic planning and investments have helped it deliver record finances for 2021.
The main driver of strategic planning has been an increase in prices and volumes across all services.
Operating expenses have risen in the company, with personnel expenses increasing 24.2% to $1.5bn,
this being attributed to a higher headcount and pandemic-related cost reductions.
Transport sector had total revenue of $22.05bn across the whole of 2021, reflecting the mentioned
changes to strategic planning and increases in prices and volumes across all services. Gross profit was at
$3.05bn, an increase of 24.1%. The profit margin reduced from its 2020 margin, changing from 15.29%
to 13.84% in 2021.
ENVIRONMENT:
Understanding efficiencies, reducing carbon footprints:
At C.H. Robinson, sustainability is important. They work to create efficient supply chains. This
is not only smart for business, but also reduces waste, decreases carbon emissions, and will make
the world around us better for generations to come. C.H. Robinson will reduce carbon intensity
40% by 2025 over 2018 baseline numbers. They will find energy efficiencies within their
facilities within their facilities, leverage renewable energy, invest in renewable energy
certificates (RECs), and participate in offset projects.
Reducing our emissions intensity:
C.H. Robinson are committed to reducing our greenhouse gas emissions and have set a science-
aligned below 2°C goal to reduce our Scope 1 and 2 carbon intensity. By the end of 2021, they
were more than halfway to their goal. To achieve this goal, they seek energy efficiencies within
their operations and potentially other alternatives such as purchasing energy credits.
Emissions IQ helps shippers measure their Scope 3 transportation emissions, giving them critical
visibility into their value chain necessary to meet their sustainability goals. Emissions IQ applies
the Global Logistics Emissions Framework and is accredited by the Smart Freight Centre.