Cargo Company Uses AI to Facilitate Freight MovementBy Pamela Benítez | Wed, 10/27/2021 - 12:23
Racing Cargo Mexico is developing zenix, a US$20 million artificial intelligence (AI) that allows the company to forecast possible scenarios during their client’s sea, land and air cargo movement.
"We deliver to customers a competitive advantage that they can use to predict at a given time. For instance, we cannot avoid a snowstorm in Michigan, but we can anticipate that with this situation, you will have to load twice as much because of the snowstorm. We are looking for that competitive differentiation to capture more businesses," said Eduardo Haros, CEO, Racing Cargo.
Through zenix, Racing Cargo’s clients will be able to know in real-time where their product is located and when it will arrive. They will also have access to real-time information on their products and receive notifications of container shortages, among other data that will help foresee possible scenarios that could affect their cargo movement.
This technological innovation emerged as a response against the necessity of transforming the freight industry in the post-COVID-19 era. “We have to search for more services for our customers other than just offering to move cargo from point A to point B," said Haros.
The company’s customers will gain access to zenix when they hire any of Racing Cargo’s services but the project is only 60 percent finished. The company is looking to fund 50 percent of its AI investment through foreign banks, mainly in the US.
This year, Racing Cargo added last-mile delivery using vans and motorcycles for ecommerce companies and counts with Amazon as one of its clients. For next year, the company plans to launch a service specific for companies that sell products through social media, as Racing Cargo experienced a 120 percent growth in 2020 due to the diversification of its customer portfolio, which includes aerospace, automotive fashion, and pharmaceutical industries.
"We already work with several companies that do not exist physically but sell daily. Today, we have 100 motorcycles and 20 vans for last-mile services and we expect to have more but the agencies have a chip shortage problem. The challenge will be increasing the equipment infrastructure because having potential customers is not a problem," Heros said.
Racing Cargo Mexico has 1,854 suppliers and 9,429 active clients with 42,060 loads per year. Their service portfolio includes ground, air and sea transport with warehouse facilities and additional services to deliver its clients’ goods to their final destination. The company also completed 15 certifications and offers support services 24/7, 365 days a year.
Its headquarters are located in Monterrey but it owns offices in Mexico City, Guadalajara, Queretaro, Torreon, San Luis Potosi and Leon. It is also present in Germany, China and the US.