History of C.H. Robinson

C.H. Robinson headquartered in Eden Prairie is identified as a “Fortune 500 provider” for “multimodal transportation” services and “third-party logistics (3PL)” services. The operations of the company include “freight transportation, transportation management, brokerage and warehousing”. The main activities also comprise of logistics forecasts such as “truckload, less than truckload, air freight, intermodal, and ocean”. The company is seen to be having the contractual relations with more than “66,000 transportation companies”. This includes “motor carriers, railroads, ocean carriers and freight services”. C.H. Robinson has handles “14.3 million shipments” and worked with more than 46000 customers in 2014. The company’s transportation of goods accounts for 94% of the total gross net revenues with the remaining sources and marketing of the fresh produce (Chrobinson.com. 2018).

“C.H. Robinson’s” entry into the trucking business is identified after the passing of the “Federal Highway Act of 1956” which expanded in the interstate and expanded across the roadways of America. Some of the other consideration of the company is further seen to be based on the previously discerned strategies. It has been identified that the company used to rely its services in the name of “Meat Packers Express based in Omaha, Nebraska”. This was further seen to be formed after the merging of the additional carriers three years later in 1986 (Chrobinson.com. 2018).

The operational strategies in 1960s were related to the C.H. Robinson Co. Nash Finch having the total of 25% stake in the brokerage company. In 1976, the Nash Finch was seen to hold a total of 100% employee owned technology and given by IBM. The “Motor Carrier Act of 1980” was seen to deregulate the transportation industries across America and increased the overall competition of the shippers and logistics service providers. The main operational strategy created by the company was identified with the contract carrier program, thereby expanding the various freight services and establishing middleman sourcing operation for virtually shippable goods. C.H. Robinson has average truckload load of more than $ 700m in the last five years. Out of the total brokerage of 40% was seen to be generated from the revenue (Chrobinson.com. 2018).

C.H. Robinson is situated at Eden Prairie, Minnesota, U.S. In this organisation I have been assigned with the role of Logistics Coordinator. The main role assigned to me in this concern is identified with facilitating the shipping of the products from one destination another, deciding for transportation, orchestrate deliveries to meet customer demand and schedule staff. Some of the other duties in the organization is further seen to exist with receiving the product and coordinating the deliveries of the products. The analytical job duties in the organization is seen with continually reviewing the “freight costs, transportation rates, and the prices of raw materials” to keep costs down where possible. Some of the main discourse of the study has complimented the understanding of Corporate and Social Reasonability, Operations Management, Global Operations Management, Risk management and ERP system for C.H. Robinson via secondary research.

Multimodal transportation and 3PL services

As stated by Chien, Lin and Shih (2014), the different types of challenges such as poor market reach due to ineffective prospect and lack of “monitoring and control resulting in schedule and cost over runs” has called for the need to ERP implementation among organizations. Some of the other reasons is seen with “high inventory costs due to lack of visibility of stock” and increasing nature of the replacement cost.

The integration of the supply chain activities at C.H. Robinson is done by the implementation of SAP. This has integrated the various types of the functional areas of the business with each other. This method is seen to be based on the integration of the important areas of business such as “Financial Accounting, Managerial Accounting, Human Resources, Supply Chain Management, Project Management, Customer Relationship Management and Data Services”. The ERP integration is able to ensure that the company is able to incorporate the different areas of the business which are seen to be related to the modification of the system process (Eden, Sedera and Tan 2014). This is seen to be based on the facts of the industry which will be able to associate the various types of the regulatory requirement. The integration of the ERP process has allowed the businesses to allow the business process management for the integrated application and automate the back-office services (Madanhire and Mbohwa 2016).

The ERP software integration is seen to be based on the classification of the “product planning, development, customization and analysis of the data output and handling of the upgrades”. These factors are seen to be related to the upgradation of the ERP application and this is seen to be customized as per the business in the industries. Th additional ERP requirements are further seen to be associated to the analysing the data output and handle upgrades. Some of the common ERP integration done by the company is identified with managing the fleets which are seen to be based on the implementation material purchasing inventory and distribution process. The controlling of repository of information is shared to improve the communication of data across the entire organization. The communication in the ERP system is seen to be automated by the mail generation, instant messaging, chat or general broadcasts at the individual group levels.  The ERP software for the business and the business process management is considered with the management of the streamlined operations and improvement of the overall productivity (Costa et al. 2016).

ERP integration

The company manages the different types of the ERP software business process management with streamlining of the operations and improving the overall productivity. The ERP “databases share the information” in numerous departments and interconnects the “applications for specific business”. In most cases the ERP processes addresses back office requirements, human resource and other administrative departments. The CRM tracks the customer data and the interaction for the front office processes (Chofreh et al. 2014). The typical application of the CRM supports the conversion of the marketing leads into sales by consolidating the information which supports the “completed forms, browsing websites and making other contacts”. The ERP is further seen to manage the various processes while maintaining CRM on the front office sales. The ERP is further discerned to reduce the costs and increase the direct revenue. C.H. Robinson is able to manage the complex framework to implement dedicated sourcing of the vendors. The major problems associated to the ERP integration is discerned with high cost and failures to main the best practices (Tian and Sean Xin 2015).

In 2012, C.H. Robinson was seen to implement “Navisphere”, the “next version of the company’s single global technology platform”. This technology was able to provide a customised end-to-end visibility which was seen to be consistent with the business processes and it is further seen to be related to the maintain a “strategy driven business intelligence around the world”. The company integrated shipper’s ERP and Navisphere was able to automate the workflows between the “transportation and business operations” and provided a visibility for the worldwide transportation process across all the modes. This was seen to provide a greater control over the supply chain activities to the customers and accelerated the proactive resolution of the problem. In addition to providing a “deeper multi-service” integration the company was able to integrate the overall nature of the service to improve the online tools for the customers of “C.H. Robinson”. The updates to “Navisphere online access” included a modernized user interface. This was seen to be streamlined “business-critical data, and customization to support customer requirements across global workflows” (Acar et al. 2017).

The ERP integration done by Navisphere allowed companies of various sizes to take advantage of the latest technology. This software was able to provide ease of use and intelligence which gave the business the opportunity to follow through the supply chain strategies. The customers were able to gain the central access to the different types of the centralized network of “more than 100,000 supply chain partners”, “without the need to integrate with the individual providers” (Chrobinson.com. 2018). The access to all the supply chain information is seen to be conducive in better managing their “logistics spend, foster optimization and improve supply chain productivity”. The customization of the business brought by Navisphere enabled the participants in the customer’s supply chain to comply with the specific aspects of the operational requirements. This factor is further seen to be conducive in providing the different types of the service during complex scenarios. This was known for creating real values to the customers and associate the different type the other factors which are seen to be related to provide the customers with a greater control over the supply chain and accelerate the resolution to the proactive problems (Huang and R. Handfield 2015). 

Risk management strategies

Managing the risks in the supply chain has never been easy for C.H. Robinson even if the chain of events comprises of transfer of goods from point A to point B. In order to deal with the complexity and the magnitude of global supply a dedicated risk management strategy is essential for success. At any point in the global supply chain even the best laid plan can be undone by the host of potential risks. C.H. Robinson has effectively “identified, assessed, prioritized and mitigated” these risks with a comprehensive risk management strategy which is employed with awareness of these capabilities within the supply chain (Guide and Ketokivi 2015). The company does this with clear articulation of the accountability among regional offices and third-party providers. C.H. Robinson gains the awareness of the service provider’s capabilities, “increase accountability of third party providers, receive detailed score cards and quarterly reviews”. This is seen to be done to evaluate the “in-house and contracted supply chain providers”. The awareness of the provider’s capability is done by increasing the “compliance regulations at all touchpoints and identify” the “hot spots along all transportation routes through visual mapping”. The increasing nature of the visibility and in-depth management of the data, help’s C.H. Robinson’s risk management strategies to accurately forecast “transportation, decrease costs, and increase efficiencies through strategic transportation plans that work the freight” (Hitt, Xu and Carnes 2016).

The awareness aspect for C.H. Robinson related to the understanding of the global issues and potential risks which are seen to be critical for unexpected situations. At the same time, it is also necessary to become aware of the “provider’s capabilities and the strengths of core suppliers”. The company maintains these information for better sourcing decisions, manufacturing decisions and marketing of products. The accountability aspect ensures that the authorities are responsible for managing of the several considerations needed for risk management strategy. Whether a “regional office, home office, or third party is responsible”, the individual parties are responsible to understand their individual roles and duties (Wilke, Majumdar and Ochieng 2014).

The recent trend of hurricanes has costed billions of dollars for the North American companies. However, the new software solution introduced by C.H. Robinson may be conducive to the business in minimising the losses for the future disasters. The “Navisphere Vision platform”, is conducive in analysing the historical data considered with the artificial intelligence and machine learnings for making the proactive decisions (Ho et al. 2015). In addition to this, the information is analysed and quantified with the determination of the supply chain threats and taking the necessary actions to control the risk. C.H. Robinson has assisted the shippers to make the global supply chain more responsive by able to provide the real time visibility to “stock keeping unit (SKU) level and then analysing the impacts of potential disruptions from weather, traffic, or current events”.  “Navisphere Vision” has continually advanced with powerful and proven capabilities for “C.H. Robinson’s proprietary Navisphere technology platform” (Marcelino-Sádaba et al. 2014).

The solutions are able to provide the unique benefits for the customers. The company is seen to be having the potential disruptions, which provides the customer powerful data, opportunities and insights to make the changes quickly. The “Navisphere Vision” is conducive in understanding the before occurring of the actual processes. This is able to provide the visualisation which connects data and real time events which happen within the supply chain. In addition to this the technology is able to take the relevant decision which is able to contribute to the make the decisions on a real time level so that it is able to address the necessary challenges and react in a less randomised fashion. The is further able to create the predictability factors throughout the supply chain and increases the collaboration to deliver the products to customers on time. This is consideration is seen to be powerful in terms of the deliver a more customized service to the customers.  

As stated by Zhao, Hwang and Low (2015), the risk management of the company is done with providing a real time visibility down the SKU level. It is seen that Navisphere vision delivers the impacts and the insights about “weather, traffic or current events, as well as predictive analytics to help shippers make better, faster decisions”. The inclusion of the next generation real time supply chain is further seen to be conducive in generating the supply chain visibility which enables the shippers to improve the overall service given to the customers. This has also made the necessary provisions for cost controls with management of inventory in motion, risk mitigation and various types of the steps which are seen to be taken for proactive status updates and limiting disruptions (Wu, Chen and Olson 2014).

It needs to be seen that the shippers are able to gain a single view for the global inventory for supporting the requirements for “working capital requirements” and “cash to cash cycle” management. In terms of the real time global visibility the combination of new supply chain insights supports the shippers with new agility, Realtime decision and accuracy. This consideration is conducive in mitigating the risks ahead of competition. The industry is further seen to be using supply chain visibility beyond the customers prediction (Valdez Banda et al. 2016) 

The “Director of Tax and Risk Management” at C.H. Robinson has considered the different aspects of taxation, compliance, controllership and planning of all the US and global sites. The understanding of the current regulatory supply chain indicator is conducive in making the necessary modifications to the existing procedures and processes. C.H. Robinson acts as the focal point for the risk management within the company including the facilitation of the risk based on “annual risk assessment process” (Choi, Chiu and Chan 2016).

Corporate and Social Reasonability and Operations Management

The corporate responsibility is managed across the communities and the industries are a part of the DNA. C.H. Robinson also believes to maintain an efficient supply chain thereby reducing the emissions and wastes. The maintaining of the efficient supply chain is not only done to help the environment but also contribute towards a long-term financial health and ensuring economic sustainability. The company strives to be a good corporate citizen thereby using the wide variety of the resources and taking wise decisions in the investment programs and the organizations making positive impact among the employees and the communities. C.H. Robinson foundation is further seen to support the employees and the community programs and underscores the commitment of doing good. The company is also seen to believe in assisting the customers, contracts and growers for attaining a better approach for sustainability. The main strategies taken by the company is seen to be related to adding to the value of the supply chain. This is done by the company for focusing on a better future (Chrobinson.com. 2018).

 

Figure: Significant CSR initiatives taken by the company in 2017

(Source: Chrobinson.com. 2018)

C.H. Robinson upholds a common value with the “customers, contract carriers, supplier and the communities”. The management at C.H. Robinson aims to create more efficient and cost-effective supply chain. The greater efficiency is not only conducive for the business but also impact positively for the generations to come. In addition to this, the core values are reflected in the sustainability initiatives. At times when a customer planes to open a new facility, the company helps in evaluating the possible locations. As per the consideration of the planned analysis, the company assists in evaluating the possible locations. The paired environmental impacts along with financial savings and the customers proceeding with the redistribution centre in the strategic locations. In this process, the company shaved 597000 miles a year off their transportation requirements (Gras-Gil, Palacios Manzano and Hernández Fernández 2016).

 

Figure: C.H. Robinson SmartWay Transport

(Source: Chrobinson.com. 2018)

The company has always strived to create transportation efficiencies to reduce waste and optimize assets. This has helped the contract carriers and leverage the backhaul capacity for minimizing the empty miles. The optimization of the loads and modes is able to reduce the miles and attain more efficiency to utilize the transportation equipment. In addition to this, some of the other initiatives is conducive in providing network analysis to help reduce the transportation miles and minimize the inventory. Some of the other techniques pertaining to operations of the company has been considered with consolidating smaller loads into larger trailers and reduce the total number of shipments which needs transporting (Lacombe et al. 2014).

The major strategies have been able to reduce the distance from the farm table and strengthen the local economies through regional farming programs and legacy models. C.H. Robinson is seen to participate in the “U.S. Environmental Protection Agency’s SmartWay Transport Partnership”. This is measured in terms of the benchmarks for freight transportation efficiency. Additionally, the continuous collaboration with institutions like MIT is able to more accurately measure the carbon emissions (Grougiou et al. 2014).

The company is seen to obtain a differentiated environment protection strategy by helping the large number of the customers in evaluating the strategic placement of the new facilities and pairing with the environmental impact for financial savings. The overall analysis of the corporate social responsibility is helpful in protecting the planet by eliminating 597000 transportation miles each year and reducing miles travelled by one third. In addition to this, “Freightquote, a company of C.H. Robinson” has developed a solution to ship the products safely without the need for pallets. This has aimed to reduce trees, money and labour. The optimization of the networks minimizes the inventory and miles. The operations of the company have recommended the sourcing locations which provides the “leverage supplier locations, manufacturing capabilities, and customer demand”. The overall CSR activities “eliminate the unnecessary network assets, inventory, and transportation miles” (Kilic et al. 2015).

 

Figure: C.H. Robinson Wordwide CSR Rating

(Source: CSRHub 2018)

The misfits program operated by the company is considered as a worldwide issue in the areas of concerns and focuses on the “produce, retail, and foodservice industries for some time”. The considers are seen to be having a clear picture of fresh quality of food. Unfortunately, “fruits and vegetables have an innate tendency” for bruise, scar, wit or discolour when they are seen to be moving from one store to another store. To help the consumers in tackling the various types of the problems associated to the “imperfect or irregular-looking produce”. The food rescue program aims to minimize the total amount of produce which would have otherwise be discarded. Due to the presence of the minor blemishes, slight considerations, the food rescue program is conducive in reducing the amount of the produce that would otherwise would be discarded. The internal initiatives have strived to make the necessary changes within the organization to reduce the overall impact on the environment (Jones Christensen, Mackey and Whetten 2014).

The different types of the internal activities make the changes within the own organization to minimize the environmental impact. In addition to this, state of “Minnesota is requiring that 25% of utility electric energy sales come from renewable energy sources by 2025”. Some of the different types of the other additional initiatives taken by the company has contributed to reduce the environmental impact. These considerations have included the additional strategies such as “motion sensor lighting and natural light, recycling and organics programs, printer paper reduction strategies, air cooled data centres, and natural prairie grass space rather than groomed lawns”. Moreover, from “March to December 2017”, the corporate campus has launched a recycling program which is able to successfully divert 116 tons of recycling and organics from the landfills. The employee driven campus allows for offices around the world to participate in the local or regional charitable giving programs. The two data centres in Minnesota are seen to operate in terms of the several sustainability measures. The process of reducing the water and the cooling systems are done based on the closed loop water chilled systems. This is able to able to reduce the overall energy use and facilitates “free cooling” for at least 180 days each year. The practices are conducive in leveraging the cooler Minnesota weather for appropriate temperature regulation instead of using compressors for the entire year. Some of the different types of the other efforts around the renewables and containment which reduces the electrical costs and leave an environmental footprint in the two facilities (Huang et al. 2014).

As discussed by Huang and Handfield (2015), managing operations with an ERP system allows the companies to drive process of global integration through information exchange. In certain applications ERP automates the process of creating a request for order, creating the purchase order, purchase order dispatch and closing the PO. This saves the time and increases efficiency in compare to the companies maintaining the order process through Non-ERP software. In addition to this, ERP also assists in sourcing the vendors at best possible price. This includes providing the raw materials in best price and assisting the sales process (Lacombe et al. 2014).

The risk management of the company is able to ensure full transparency across all the operational domains of the organisation. The allows putting in place risk governance structures which allows an organization to clearly define the risk appetite. The appropriate measures to control risk in inventories will be able to forecast the demand and the service from beforehand. This allows for dealing with fluctuations in demand and supply of the materials thereby contributing to the overall competitiveness (Opresnik and Taisch 2015).

The contribution of CSR in the competitiveness is seen to be based on the implementation of the various types of the factors which provides “sustainable competitive advantage, reputation, and customer satisfaction”. The CSR activities are conducive in contributing to the social and reputational capital thereby increasing the growth potential of an organisation. Several empirical researches have suggested that “the positive effect of CSR on firm performance is due to the positive effect CSR has on competitive advantage, reputation, and customer satisfaction”. Some of the other findings have stated on the role of CSR in indirect promotion of the firm’s performance through “enhancing reputation and competitive advantage while improving the level of customer satisfaction” (Machado et al. 2017). 

The use of information and technology in C.H. Robinson such as “Navisphere” was able to provide a customised end-to-end visibility which was seen to be consistent with the business processes. The company integrated shipper’s ERP and Navisphere was able to automate the workflows between the transportation and business operations and provided a visibility for the global transportation process across all the modes. This was seen to provide a better control over the “supply chain activities” to the customers and accelerated the proactive resolution of the problem. C.H. Robinson is seen to participate in the “U.S. Environmental Protection Agency’s SmartWay Transport Partnership” which have been able to reduce the distance from the farm table and strengthen the local economies through regional farming programs and legacy models. This is measured in terms of the benchmarks for freight transportation efficiency. The “Navisphere Vision” is conducive in understanding the before occurring of the actual processes. This is able to provide the visualisation which connects data and real time events which happen within the supply chain. The implementation of systems/technology is overall able to contribute to the risk management of the processes. 

The conduction of the different types of the activities in the project plan is classified under risk management, corporate social responsibility and ERP implementation. The secondary information collected on these concepts is conducive in understanding the integration of the core business areas of C.H. Robinson with other departments. The project is also able to state on the existing technologies which are seen to be implemented in the organization. Some of the various types of the other discussions is also conducive in knowing about the factors relating to the strategic advantages for the company.

Furthermore, the project plan has proposed the risk management strategies which are being already implemented at C.H. Robinson. These strategies are related to the corporate objective and assessed in terms of the impact of information technology. The application of the information technology understanding is also relevant to the CSR activities. This is related to the initiatives taken by the company such as the “U.S. Environmental Protection Agency’s SmartWay Transport Partnership”.

The main challenge in the project plan is considered with non-consideration for the contingency plans. This concept is important for the project managers to know about the pre-defined what if scenarios. As the contingencies are not set, some of the most significant aspects of the project may become mired in an unexpected set of problems. In several cases the lack of operational information was also identified as one of the major hindrance to the project plan. This is related to the non-availability of the vital operational data which is critical to the organization. In several cases the “efficient indicators and monitoring systems to measure performance” was not seen to be set. It has seen that the main operations of transportation at C.H. Robinson is divided into road transportation and marine transportation. However, in various situations there is no such separate information available which is seen to be conducive with the evaluated strategies. The time constraint is another challenge in the planning of the project. The process of the reviewing the literature available on the topic of ERP, Risk Management and CSR is done within a short time. In addition to the collection of the relevant data from the secondary sources accounts for a significant effort in the timeline set for the activities of the project. The main evaluation of the information is done only in identification of the  operational aspects pertaining to the ERP, Risk Management and CSR, whereas there are several other areas which is not included in the discourse.

The outcomes of the project have been able to depict that integration of the important elements of the ERP is able to ensure that the company has incorporated the different areas of the business which are seen to be related to the modification of the system process. This is seen to be based on the facts of the industry which will be able to associate the various types of the regulatory requirement. The integration of the ERP process has allowed the businesses to allow the business process management to allow the system of the integrated application and automate the back-office services. The main information on the competitive advantages is further able to state on the automation aspect of ERP for process of creating a request for order, creating the purchase order, purchase order dispatch and closing the PO. This saves the time and increases efficiency in compare to the companies maintaining the order process through Non-ERP software. The discussion about the risk management is able to depict that C.H. Robinson gains the awareness of the service provider’s capabilities, “increase accountability of third party providers, receive detailed score cards and quarterly reviews”. In addition to this, the competitive advantage in terms of risk management is depicted with ensuring full transparency across all the operational domains of the organisation. The allows putting in place risk governance structures which allows C.H. Robinson to clearly define the risk appetite. The outcome of the project associated to CSR and operations management has showed that C.H. Robinson maintains a common value with the “customers, contract carriers, supplier and the communities”. The management at C.H. Robinson aims to create more efficient and cost-effective supply chain. The greater efficiency is not only conducive for the business but also impact positively for the generations to come. In addition to this, the core values are reflected in the sustainability initiatives. The contribution of this in terms of the competitiveness in the business is understood with implementation of the various types of the factors which provides “sustainable competitive advantage, reputation, and customer satisfaction”. These are favorable in contributing to the social and reputational capital thereby increasing the growth potential of an organisation.

Conclusion

The study has showed the various types of the aspects related to the strategies of ERP, Corporate Social Responsibilities and risk management. The different evaluations based on the implementation of ERP has stated that the integration of the important elements of the ERP is able to ensure that the company is able to incorporate the different areas of the business which are seen to be related to the modification of the system process. This is seen to be based on the facts of the industry which will be able to associate the various types of the regulatory requirement. The integration of the ERP process has allowed the businesses to allow the business process management to allow the system of the integrated application and automate the back-office services. The “ERP databases” and share the data across multiple departments and interconnects the applications for the specific business. In most cases the ERP processes addresses back office requirements, human resource and other administrative departments. The major problems associated to the ERP integration is further discerned with “high costs” and failures to main the best practices. 

The implementation of “Navisphere”, the “next version of the company’s single global technology platform” has provided a customised end-to-end visibility which was seen to be consistent with the business processes and it is further seen to be related to the maintain a strategy driven business intelligence around the world. The company integrated shipper’s ERP and Navisphere was able to automate the workflows between the transportation and business operations and provided a visibility for the global transportation process across all the modes. The CSR initiatives have stated that the company has always strived to create transportation efficiencies to reduce waste and optimize assets. This has helped the contract carriers and leverage the backhaul capacity for minimizing the empty miles. The optimization of the loads and modes has been able to reduce the miles and attain more efficiency to utilize the transportation equipment. In addition to this, some of the other initiatives is conducive in providing network analysis to help reduce the transportation miles and minimize the inventory. C.H. Robinson has effectively identified, assessed, prioritized and mitigated the global supply chain risks with a comprehensive risk management strategy which is employed with awareness of these capabilities within the supply chain. It has done so by clear articulation of the accountability among regional offices and third-party providers. C.H. Robinson gains the awareness of the service provider’s capabilities, “increase accountability of third party providers, receive detailed score cards and quarterly reviews”. The increasing nature of the “visibility and in-depth management” of the data, help’s C.H. Robinson’s risk management strategies to accurately forecast “transportation, decrease costs, and increase efficiencies through strategic transportation plans that work the freight”. 

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