Archerhub CEO Nick Darmanchev Named to 2020 Supply & Demand Chain Executive “Pros to Know”

Archerhub’s organically grown, asset-based digital marketplace provides enhanced visibility and protects against truck breakdowns

DENVER, March 23, 2020 (GLOBE NEWSWIRE) – Archerhub founder and CEO Nick Darmanchev has been named to the 2020 Supply & Demand Chain Executive supply chain provider “Pros to Know,” recognized online and in the April issue of the publication. The Provider Pros to Know is a listing of individuals from a software firm or service provider, consultancy or academia who helped their supply chain clients or the supply chain community at large prepare to meet the significant challenges in the year ahead.

Archerhub is an asset-based digital freight broker, in that not only does it match loads with its network of carriers, it also runs its own fleet. The Archerhub fleet serves as a backup for loads that go uncovered on its platform by carrier partners as well as the linchpin of its freight recovery program for any potential truck breakdowns while in transit. With the support of its fleet, Archerhub guarantees hauls for every shipper that registers a load. 

Unlike its high-profile competitors in the digital brokerage marketplace, Archerhub has grown its business and development organically, without applying an extensive “growth-at-all-costs” venture capital strategy.

“We acquired a fleet to better understand the challenges our carrier partners face, as well as what additional opportunities and assurances we could provide to our shipping customers,” said Darmanchev. “Our mission is to be the most reliable and accountable digital freight broker in the in industry. Our platform constantly sources for truck capacity from outside carriers regardless of whether the truck is in transit. We’re still looking for trucks until that load gets delivered, and will use any asset, including our own fleet to make that happen.”

Archerhub’s digital marketplace for truckload freight connects shippers and drivers through Archerhub’s mobile app or online platform, providing instant quotes, full transparency, real time visibility, and automated customized reports.

Freight shipments are contracted with the most reliable carriers in the industry that adhere to rigorous standards, as well as via options from Archerhub’s private trucking fleet. Archerhub provides full transparency regarding any load during the cycle of a load and after its completion via its mobile app or online platform, with optional automated notifications for the loads if desired.

For 19 years, Supply & Demand Chain Executive’s Pros to Know Awards have recognized supply chain, manufacturing and non-manufacturing enterprises that are leading initiatives to help prepare their companies’ supply chains for the significant challenges of today’s business climate.

Fleets Share Thoughts on COVID-19 Impact

Fleet Owner – “Food-related carriers have doubled their orders,” said Archerhub CEO Nick Darmanchev. “We have too much business because of this incident.”

The digital freight broker based out of Denver connects drivers with customers needing to fulfill extra capacity or recover freight, and going has been good. Like the experts at DAT Solutions who track spot rates, he likens the period to the high watermark of 2018.

“Tyson foods, Anheuser-Busch—they’re all of a sudden increasing the amount of freight, so it’s crazy out there,” Darmanchev said. “They’re starting to drive the prices up.”

The problem with only looking at one data set, like spot rates, gives a false impression. Because of the pandemic and people getting sick or having to stay home and watch their children as schools have closed, loading and unloading times have been impacted. And the situation changes by the week, if not by the day.

In an interview on March 17, Darmanchev who manages a fleet of about 50 trucks to further assist clients, observed trailers were taking 24 to 48 hours to get loaded. This week, conditions have changed due to corrections in the supply chain.

“While manufacturing and warehousing are experiencing understaffing, at the same time everyone is working together more efficiently and quicker than before,” Darmanchev said on Mar. 26.

Some changes speeding up the process are distribution centers are accepting trucks a day earlier than scheduled, the FMCSA waiving HOS rules for critical goods such as medical supplies, water, and food products, and the nationwide staycation has also led to empty highways and faster deliveries. 

“Currently, these factors are actually offsetting the shortage in manufacturing and warehouse labor,” Darmanchev said.

At some point, inventory will be depleted, though.

“I am worried about what’s going to happen if the virus isn’t contained immediately,” he said. “The supply side will be affected and that has a trickle-down effect. He predicted in the next two or three weeks, “we’ll see a drastic downturn.”

In our survey, 64% listed limited access to freight as a supply chain issue to look out for, with 23% marking access to vehicle service parts. BestDrive, Continental’s commercial tire dealer and retreader, affirmed it was staying open as an essential business to support the transportation industry, as did Goodyear. The latter suspended production due to decreased demand, though.

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Hitting the Road with Confidence: How a Digital TMS Can Benefit Your Business

Getting goods from point A to B can mean a lot of juggling for shippers. Tight timelines are the status quo, with rising industry expectations for speedy delivery. According to the U.S. Department of Transportation, recurring peak-period freight congestion is projected to rise dramatically by 2045 from 8% to 35%, creating delays across nearly 78,500 miles of roadways. Speedy timelines are especially critical for food logistics, because these goods get less and less fresh with each passing hour and day. With more drivers and freight out and about, it’s safe to say that the roads will only get busier in the future.    

On top of that, businesses spend a significant amount of time and effort managing shipping as they juggle more modes, touchpoints, routes and carriers than ever before. Disruptions can also directly impact the success of a shipment. The coronavirus is just one example of how factors totally outside a shipper’s control can upend supply chains. British fashion retailer Next reported it has $26 million of inventory at risk in China because of the outbreak, and many retailers have even issued updates to their first-quarter projections as a result of the health alert. 

Between the demand for fast delivery, inefficient processes and inevitable disruptions, more and more shippers are embracing digital transportation management systems (TMS). In fact, 55% of supply chain executives are currently considering updating or implementing new TMS technology. Here’s how the right kind of TMS can benefit your business. 

  1. Access competitive rates faster 

Historically, rate shopping has been a manual and time-consuming process that didn’t always guarantee you the best rates for your shipping needs. If you’re ready to say goodbye to the cumbersome process of quote management, Archerhub can help. It’s a TMS that allows you to connect with thousands of carriers instantly. Archerhub puts you in touch with the ideal carrier based on rates, modes and timing, among other categories. 

Using the right TMS can provide huge cost benefits when it comes to rate shopping. Having one central system allows you to easily compare and contrast quotes based on your budget. When you do find the best price on Archerhub, you can easily check shipments off your to-do list – and get back to getting your job done.

2. Keep tabs on your freight at every step 

Look for a TMS that offers real-time visibility, so that you can manage disruptions when – or even before – they arise. With Archerhub’s real-time geolocation tracking, you can see your freight every step of the way, from point A to B and beyond. The cloud-based platform allows drivers to stay connected via mobile app, giving shippers peace of mind that perishable or other time-sensitive shipments are proceeding as planned. 

3. Simplify back-office functions 

The average business spends 55 hours per week on manual, paper-based processes and checks. When you don’t have to sort through paper invoices or wrestle with multiple platforms to pay the bills, your team can save a lot of precious time and money. With a TMS like Archerhub, you can manage payments and accounting directly on its centralized platform. 

4. Stay on track when things go astray 

Coronavirus may currently be the center of attention in the news, but it’s far from the only disruption that can affect a supply chain. Compliance factors, severe weather and road conditions also play a huge part in whether or not a shipment goes smoothly. A TMS that offers built-in support for the bumps in the road can help support overall business continuity and minimize reputational risks for your brand. 

Unlike other TMS technology, Archerhub is unique because it has its own fleet recovery program. As an asset-based digital freight broker, Archerhub is trusted by household names like Tyson and Anheuser-Busch to move ground freight seamlessly. 

Arriving quickly and reliably 

Get your freight where it needs to be, and when it needs to be there, with Archerhub. With its centralized hub for rate shopping and invoice management, geolocation tracking, and its own fleet recovery program. Archerhub is the choice to meet your shipping needs. When you don’t have to worry about if your shipment will safely arrive in a timely manner, you can get a lot further in what matters: working hard to make your business goals a reality. 

Archerhub banks on boosting trucker pay to guarantee capacity

To Nick Darmanchev, truckload brokerage comes down to a couple of simple math problems.

For one, a truck driver needs to make $1,000 in revenue per day to make a sustainable living. And second, drivers lose about 10 days a month because loads are not sequenced in such a way as to enable continuous moves.

Darmanchev, CEO of the asset-based freight brokerage Archerhub, figured the math out during a two-year stretch running a trucking company between 2013 and 2015. At the end of 2015, he acquired a software company to memorialize the lessons learned on the asset provider side.

“Instead of focus groups and talking to owner-operators, I actually dove in and bought a fleet,” he said in an interview with JOC.com. “I wanted to understand what it takes to run a trucking company profitably.”

The time wasted between moves is what stuck out to Darmanchev on the operational side. 

“Our dispatchers would get one truck from LA to Denver, and then the dispatcher would wait until the truck was empty and then book another load,” he said. “In that example, the truck would always lose one day. So that’s 10 days of the month where the truck is not moving. That’s a lot of days.”

Plenty of freight brokers – incumbents, and new digitally-minded entrants – as well as broker-focused software providers are working on the problem of sequencing loads for drivers, but it remains an elusive target.

$1,000 per day goal

Denver-based Archerhub uses a unique model to overcome that operational roadblock to hit Darmanchev’s other mathematical obsession — the $1,000 per day of revenue a driver needs. The company doesn’t just use algorithms to match loads, it maintains its own fleet, which handles about 5 percent of the volume it moves. Those assets are there to help Archerhub cover loads where there’s been an issue, like a sick driver. 

“We don’t have a hub,” he said. “We place our trucks where our customers are. With about 5 percent of freight experiences, there’s always a ‘situation.’”

Archerhub uses a drop trailer model to cover those loads, where the driver leaves the entire trailer, avoiding live load situations where a driver would need to schedule an appointment. 

“We use our assets to give recovery to our customers,” he said. “We sometimes take a loss, but we make up for that by providing 100 percent service level.”

One example of sequenced loads benefiting the carrier is a driver going from Portland to Denver, then Denver to Omaha, then Omaha to Chicago. Assume the market price from Portland to Denver is $2,000, the Denver-Omaha leg is $600, and the Omaha Chicago leg is $1,500. 

“If I bundle the three together, I take $100 off each load. The driver is still much better off, there’s no day of not driving, and they don’t have to use a dispatcher. If [the driver] doesn’t make it to the second load, we’ll give back the $100, unless it’s their fault,” Darmanchev said. “We pass the savings on to our customer and the carrier wins because the driver doesn’t have to look for another load. Now the carrier is only concerned about what they’ll do with the truck a week in advance out of Chicago.”

The decision to try to sequence two and three moves began before Darmanchev acquired the software provider. “We decided to start pre-booking at least one day in advance. If you properly managed a load, you could squeeze $800 or $1,000 a day,” he said. “Then we tried to get three loads in advance, then took that to developers and built it out, sourcing loads from different boards, like Truckstop, on a bundled basis.”

From bundling to automating

After acquiring the software provider at the end of 2015, the goal went from bundling sequenced loads to automating that process to achieve the $1,000 a day revenue threshold to make its assets profitable. The company has been using robotic process automation (RPA) to automate its own back-end operations and is currently working on a tool that would use RPA to automate load scheduling. 

“That’s my theory,” Darmanchev said. “That’s how we’re different. When we deploy this platform to match freight, dealing with the Archerhub app is different than dealing with other [freight matching] mobile apps. Not only will they be able to book freight through us, but also through other platforms. Anyone who can give us their [application programming interface], our system will look to book as profitability as possible.”

Archerhub, which has more than 500 shipper customers, won’t charge fleets to use the app to access loads unless the carrier has five or more trucks. The carrot for those small fleets is business management modules Archerhub will offer, like accounting, something Darmanchev believes differentiates his approach from other newer digital brokers like Uber Freight and Convoy.

“A lot of people think we need to keep the trucks in our network, but I don’t think so,” he said. “This is to create density on the capacity side. Our system replaces the dispatcher. None of the companies that operate today operate without phone calls.”

He also thinks his module gives Archerhub a leg up on pure marketplaces, since “ArcherHub is a broker, so we have the tech and direct control over pricing.”

With that asset base and control over pricing, ArcherHub’s approach is more similar to that of JB Hunt than the more recent digital-based entrants to the market. JB Hunt has blended its own assets with a digital freight matching marketplace, as well as a drop and-hook program that non-asset carriers in its network can use. Convoy started a drop-and-hook program in May 2018, while LoadDelivered is another broker offering drop-and-hook, with 20 percent of its capacity tied to drop trailers.

Archerhub plans to start an external drop-and-hook program in the third quarter “as we continue to acquire trailers in the face of expected demand,” Darmanchev said.

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The Future of Freight Is Congested. Digital Brokers Could Help Unclog It.

Blown tires, highway pileups and delays: There’s quite a bit that can go wrong with domestic freight shipments between points A and B.

Research shows that 5% of all freight loads have a hiccup while in transit, leaving shipments stranded and businesses scrambling to meet delivery timelines. And those problems are poised to become even more common. According to the U.S. Department of Transportation, recurring peak-period freight congestion is projected to rise from 8% to 35% by 2045, creating delays across nearly 78,500 miles of roadway. It’s clear that the roads will only get busier with the potential for more disruptions, and shippers will need to anticipate that.

Preparation begins with putting the right partners in place to manage and move freight. One area to where more businesses are turning is digital freight brokerage, a market that has exploded over the last several years. Third-party logistics providers have seen 5X growth since 2000, with more expected in the years ahead. The digital-only model can fall short when disruptions happen, however, since 3PLs don’t have their own assets to provide backup if needed.

By working with partners that combine extra capacity with sophisticated tools, organizations can prepare for, and even anticipate, inevitable bumps in the road. Here are two key areas to consider to keep your shipments on track.

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Archerhub Named to Food Logistics’ 2019 FL100+ Top Technology Providers List

Archerhub has been named to the 2019 FL100+ Top Software and Technology Providers by Food Logistics, the only publication exclusively dedicated to covering the movement of product through the global food supply chain.

Archerhub is an asset-based digital freight broker, in that not only does it match loads with its network of carriers, it also runs its own fleet. The Archerhub fleet serves as a backup for loads that go uncovered on its platform by carrier partners as well as the lynchpin of its freight recovery program for any potential truck breakdowns while in transit. With the support of its fleet, Archerhub guarantees hauls for every shipper that registers a load.

“Our platform constantly sources for truck capacity from outside carriers regardless of whether the truck is fine and in transit. We’re still looking for trucks until that load gets delivered,” said Nick Darmanchev, founder and CEO, Archerhub. “If the truck breaks down midway, we already have a database of available empty trucks that might take the load. If that does not pass, we look into our own fleet.”

This guarantee is of particular importance to its perishable food shipper customers, for whom shelf life and freshness is of the utmost importance.

“Our brand promise to customers depends on speed and freshness, so we wanted the efficiency and visibility that a digital freight broker provides, but also wanted to guarantee that
our shipments would arrive on time. Archerhub provides the best of both worlds,” said Claude Taylor, Shipping Manager for DemKota Ranch Beef. “The visibility technology is a huge
advantage for a company like ours with perishable shipments. Before Archerhub, we didn’t know where our loads were until they arrived…or if it was late.”

Archerhub’s digital marketplace for truckload freight connects shippers and drivers through Archerhub’s mobile app or online platform, providing instant quotes, full transparency, real time visibility, and automated customized reports.

Freight shipments are contracted with the most reliable carriers in the industry that adhere to rigorous standards, as well as via options from Archerhub’s private trucking fleet. Archerhub provides full transparency regarding any load during the cycle of a load and after its completion via its mobile app or online platform, with optional automated notifications for the loads if desired.

The annual FL100+ Top Software and Technology Providers list serves as a resource guide of software and technology providers whose products and services are critical for companies in
the global food and beverage supply chain. Companies on this year’s 2019 FL100+ Top Software and Technology Providers are found in the November/December 2019 issue of Food Logistics.

Asset-based digital marketplace Archerhub guarantees 100% hauls for all loads on its platform

FreightWaves – The advent of digital freight matching within the trucking sector has brought order to the chaos of the spot market, as it helps usher real-time visibility into both capacity and volumes available in a market. 

However, digital freight marketplaces do not come with a guarantee that every shipper on the platform would have its loads matched to a carrier. Around 5% of all shippers on these platforms reportedly get their loads rejected or go unnoticed. 

Archerhub, a Denver-based digital freight broker, is tweaking such marketplaces by adding its own assets to the mix. The company runs its own fleet, which it uses as a backup for loads that go uncovered on its platform by carrier partners, thus guaranteeing hauls for every shipper that registers a load on Archerhub. 

“We do not use our fleet to generate revenue or profits, but we use it as a backup recovery plan for some of the freight that we have from our shippers that we need to recover,” said Nick Darmanchev, the CEO and founder of Archerhub. 

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CSCMP Conference Key Takeaways Podcast

Our CEO Nick Darmanchev shares about our team’s experience at CSCMP Edge and how we are shifting the truckload freight market with an asset based digital approach.

Archerhub Merges Fleet Assets with Digital Freight Marketplace

Commercial Carrier Journal – To date, digital brokers and freight marketplaces have been dominated by non-asset companies. At least one company in this space, Archerhub based in Denver, owns its own truck fleet to provide capacity alongside its pool of owner-operators and contracted carriers.

Archerhub has created a digital freight marketplace platform for truckload shippers and carriers to connect and book loads. Freight shipments are contracted with carriers that adhere to rigorous standards, with options to utilize Archerhub’s private trucking fleet.

Digital freight broker’s ‘back-up plan’ — its own small fleet of trucks

Overdrive – Archerhub, a digital freight broker based in Denver, has been in a growth spurt with connected carriers and shippers utilizing its services to connect. Particularly useful, the company says, in selling to shippers is what company reps call a built-in “back-up plan” for freight movements that experience any number of hiccups en route or during the planning process: in addition to contracting with independent carrier partners, Archerhub owns its own truck fleet.

“Should a truck break down in route to delivery,” said Nick Darmanchev, Archerhub chairman and CEO, “because we have our own fleet, we always have a truck ready to recover any shipment, 24/7.” The company’s self-service technology for locating capacity doesn’t “just assign truck to a load. We always assume something might go wrong during its transit. Our algorithm is designed to constantly give options for backup trucks, just in case.”

The company, reps say, has made strides in refrigerated and dry van freight, particularly food- and beverage-related.

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