GLOSSARY - LOGISTICS
What is Carrier Selection AI?
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Quick Answer
Carrier Selection AI uses machine learning to recommend optimal freight carriers for each shipment based on cost, reliability, service levels, and performance history. It evaluates carrier capabilities, route performance, pricing, and customer requirements to make intelligent routing decisions that balance cost and service quality.
Definition
**Carrier Selection AI** transforms logistics from gut-feel carrier assignments to data-driven optimization. AI considers dozens of factors—carrier rates, on-time performance, damage rates, capacity, lane expertise, customer preferences—and recommends the best carrier for each shipment.
Key Points
- Evaluates carriers based on historical performance data
- Balances cost, service level, and reliability
- Considers route-specific and commodity-specific expertise
- Learns from outcomes to improve future selections
- Optimizes for customer-specific priorities
- Reduces freight costs by 15-20% on average