Rachel Premack and C.H. Robinson’s $1 Billion Tech Investment

Rachel Premack: Recently, your company announced a significant $1 billion investment into freight technology. How is that progressing?

Bob Biesterfeld: It’s going exceptionally well. It’s worth noting that our investment in technology has been ongoing for some time. We’ve focused on people, profits, and tech as key pillars for C.H. Robinson, which has shaped how we engage with our market and serve our customers. Last year, we invested around $170 million, and we’re set to spend even more this year, continuing a pattern rather than making a drastic change. We view this as essential to maintaining our leadership in the sector.

Focus of Technology Investments

Biesterfeld: Our technology investments are prioritized with customers and carriers in mind. We aim to help carriers improve their business efficiency, which includes small businesses and large fleets. There’s considerable scope to minimize waste in freight transport, a goal we’ve pursued for quite a while. Additionally, our employees are at the center of this effort, benefiting from improved workflows and access to vital information, ultimately aiding both customers and carriers.

Investment Breakdown and Future Hiring

Approximately 80% of our technology fund is dedicated to innovation and new product development, particularly in freight quoting. The remaining 20% is directed toward vital infrastructure and system upgrades. This foundation ensures that our technology, which many of our customers rely on daily, remains stable and scalable.

Hiring Trends and Geographic Focus

Premack: What kinds of roles are you planning to hire for with this investment?

Biesterfeld: We’re expanding our recruitment to include roles such as UX designers, software engineers, and data scientists. Our focus is less on the exact location of talent and more on the skills we need. We’ve attracted individuals from various regions, including the East and West Coasts, who are drawn to the opportunities we’re creating at C.H. Robinson. The quality of life and cost of living in locations like Minnesota can also be appealing to tech talent.

C.H. Robinson’s Competitive Landscape

Premack: Given the competitive landscape with startups like Uber Freight, how do you view your competition?

Biesterfeld: There are around 18,000 3PLs in the U.S., but very few can match our scale. I focus on solving customer problems rather than fixating on competitors’ strategies. By executing our own strategy—providing a robust suite of services backed by strong technology—we can continue to lead in this fragmented industry.

Addressing Industry Challenges

Premack: Concerns surrounding the truck driver shortage vary widely. What are your thoughts?

Biesterfeld: The truck driver shortage has existed for my entire career in this industry. However, improving efficiency can decrease the perceived shortage. There’s also a pressing need for better treatment of drivers in the industry, as much depends on wages, working conditions, and respect for their role in the supply chain.

This interview has been condensed and lightly edited for clarity.