Between unnecessary deadhead miles due to nonexistent loads and loads that are fraudulently reposted on various loadboards, freight fraud has had a major impact on supply chain operations in recent years.
Jerry D’Addesi, CRO at Konexial, sat down with FreightWaves’ Timothy Dooner on the May 30th episode of What the Truck?!? to discuss what Konexial is doing to cut down on issues like freight fraud and double brokering.
Konexial is rolling out a solution that will cut down, if not eliminate, some of the common weak points in load transactions.
“We’re taking shippers and brokers and matching them up with carriers in a sort of Uber or Priceline environment,” D’Addesi said. “We allow people to bid per mile on the shipper side, and on the carrier side we match them up through proprietary algorithms that take the friction out of the process of negotiating loads.”
One key part of Konexial’s solution involves assigning a unique transportation identifier to each load, which will then be attached to every party associated with that load throughout its lifespan.
“We’re really focused on proper identifiers and following ISO certification standards, which will minimize the double brokering and other freight fraud we’re seeing out there,” D’Addesi said. “We’re hoping that this spreads through the education we’re trying to provide to stakeholders, and that we can help heal the industry from some of the persistent problems we’ve been seeing.”
Konexial provides asset protection through what the company calls VIN + TUID verification, as well as GPS tracking and geofence-based alerts. If a vehicle moves without authorization or skips a required checkpoint, Konexial flags the event and alerts the proper team for resolution. This minimizes the risk of loss, theft, or double brokering, while offering a full digital chain of custody for every vehicle.
“We place unique identifiers, basically a watermark, onto every load,” D’Addesi explained. “We require everyone associated with that load, including shippers, carriers, brokers, and so on, to use that identifier, which prevents the load from being reposted.”
D’Addesi hopes that this methodology is adopted by shippers, carriers, and loadboards around the country. If widely practiced, this level of security would change how freight is handled and greatly reduce fraud.
“When you care about it, you can start to eliminate some of the common weak points that bad actors target,” said D’Addesi. “Through our TMS, we flag when information doesn’t line up or when things don’t seem right, because we work hard to do what’s right for our clients and partners from an ethical standpoint.”
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