Bunge seals partnership with Target to create digital freight company in Brazil

On Thursday, May 6, the agribusiness company Bunge announced a partnership with Target, a logistics and technology solutions provider, to create the company Vector, focused on digitizing the process of contracting road freight and other services.

The announcement came after the Vector application had been functioning for a little more than a year; the companies developed it to contract Bunge freight.

According to Bunge, the new company is now offering platform logistics services to other shippers independently. This increases truck driver productivity by mapping corridors and product flows to find synergies. Drivers can reduce downtime and decrease costs.

The system allows freight scheduling and the distribution of all transport documents via the system, guaranteeing the cargo for the driver without any need for contact between the parties. The solution also eliminates an in-person step in the process.

“Based on the data we have available since the application was launched, we know that the tool creates efficient collaboration between companies and drivers and also improves the quality of life and income for truck drivers,” said Vector CEO Javier Maciel in a note.

Freight contracting

In just over a year since Bunge began using it, the Vector application has enabled the digitization of practically the entire freight-contracting process of the company, which handles around 25 million tons of grain every year in Brazil.

Today, the volumes contracted via the application represent 97% of everything that Bunge transports by road in the country.

Since its launch, the tool has been downloaded 57,500 times, has registered 48,000 truck drivers making 557,000 trips, and has enabled the payment of 2.6 billion reais in freight.

“The combination of Bunge’s deep knowledge of commodity handling and scale with Target’s vocation for service, agility, and responsiveness were essential to the success of the Vector application, which now becomes an independent company,” highlighted the Logistics director from Bunge, Makoto Yokoo.

According to Bunge, the company also plans to offer self-employed drivers and small haulers access to more competitive costs for products. These include automotive parts, maintenance services, and financial services, such as working capital financing, cargo insurance, and payment means.

Source: Reuters

Sharing is caring!