Good afternoon, ladies and gentlemen, welcome to the C.H. Robinson second quarter 2023 conference call. At this time, all participants are on a listen-only mode. Following the company's prepared remarks, we will open the line for a live question-and-answer session. To ask a question, please press star one on your telephone keypad. If anyone requires assistance at any time during the conference, please press star zero. As a reminder, this conference is being recorded Wednesday, August 2nd, 2023. I would now like to turn the conference over to Chuck Ives, Director of Investor Relations. Thank you, Donna. Good afternoon, everyone. On the call with me today is Dave Bozeman, our President and Chief Executive Officer, Mike Zechmeister, our Chief Financial Officer, and Arun Rajan, our Chief Operating Officer. Dave will provide some introductory comments. Mike will provide a summary of our 2023 second quarter results and our outlook for 2023. Arun will provide an update on our efforts to improve our customer and carrier experience and our operating leverage. Then we will open the call up for questions. Our earnings presentation slides are supplemental to our earnings release and can be found in the investor section of our website at investor.chrobinson.com. Our prepared comments are not intended to follow the slides. If we do refer to specific information on the slides, we will let you know which slide we're referencing. I'd also like to remind you that our remarks today may contain forward-looking statements. Slide two in today's presentation lists factors that could cause our actual results to differ from management's expectations. With that, I'll turn the call over to Dave. Thank you, Chuck. Good afternoon, everyone, and thank you for joining us today. Let me start by saying it is an absolute privilege to be leading C.H. Robinson, a market leader with enormous scale, a strong base of loyal customers, and a resilient business model that generates profits and free cash flow through the entirety of the freight cycle. I know from my time in the transportation market that other freight providers and new entrants look to Robinson as an example of a commercial engine with the breadth, scale, expertise, and financial strength that they aspire to achieve. However, there's always room for improvement, and I recognize the tremendous opportunity in front of us to accelerate growth in a very fragmented market. In my first month, I've been spending time meeting with and talking to customers, employees, and shareholders as I analyze the business. A customer-centric focus is in my DNA, and I have successfully implemented customer-focused strategies over my 30-year career at leading brands such as Harley-Davidson, Caterpillar, Amazon, and Ford Motor Company. I look forward to applying that experience towards our goal of providing such a compelling offering that customers feel like C.H. Robinson is essential to the success of their supply chain. As a lean practitioner, I'm in a discovery and diagnosis phase, and I've been learning more and shaping my vision for the company each day. I'm digging in quickly with the leadership team. I'm looking at the portfolio of businesses with an open mind, and my intentions are to drive focus so that we position ourselves for growth in our core business. As I aim to reinvigorate the winning culture, my focus will be on people, products, processes, technology, collaboration, and excellence. My style is to, one, be accountable for driving improvement and be passionate about making people better. Two, look around corners and anticipate in order to minimize surprises. Three, wake up every day like you're working for a startup by being gritty, scrappy, innovative, and change-oriented, with a focus on improving clock speed and acknowledging every day that you can be better. These practices have enabled success for the companies I've worked at and the people I've worked with. People are at the heart of Robinson, and I'm confident that together, we will win for our customers, carriers, and shareholders. I'm passionate about continuously improving how organizations operate. Lean principles work and are applicable at Robinson to further improve efficiency. Robinson is a strong company, all companies have waste that can be removed to make a company quicker, more flexible, and more agile in solving problems for their customers, improving workflows, and providing better customer service and experiences. I have helped build out and scale transportation businesses, most notably at Amazon, where technology is the starting point. I am certain we can leverage technology as a force multiplier here at Robinson, and I've been discussing it with Arun Rajan and the team. As an example, when I look at C.H. Robinson, I'm excited about the potential benefits from Generative AI in conjunction with the machine learning and artificial intelligence that the company has already been utilizing. With more data and history to leverage than any other 3PL, we have opportunities to harness the power that these advanced technologies now offer to further capitalize on our information advantage, and we'll continue to look for and pursue those opportunities. Arun will touch more on this in his prepared comments. In summary, I look forward to leading this great company to new heights and sharing our progress with all of you along our journey. With that, I'll turn it over to Mike for a review of our second quarter results. Thanks, Dave. Good afternoon, everyone. Global freight markets in Q2 continued to be impacted by weak demand, high inventories, and excess capacity, which resulted in a more competitive marketplace with suppressed transportation rates. North American freight volumes and load-to-truck ratios remain near the low levels of 2019. In the freight forwarding market, ocean vessel and air freight capacity continues to exceed demand, which has kept ocean and air freight rates low during the period of significant declines that extends back to the second half of 2022. Despite the weak demand, new vessel deliveries are expected to continue to add capacity to the ocean market. This suggests that the influence of excess capacity may persist for several periods, despite the steamship lines' efforts to manage capacity through blank sailings, slow steaming, and redeploying capacity to other lanes. We are staying focused on what we can control, providing superior service to our customers and carriers, and streamlining our processes by removing waste and manual touches. The result has been meaningful cost reduction and productivity gains across our business. With our record quarterly financial results in Q2 of last year as a comparable and the macro forces that I outlined as the backdrop, our second quarter total revenues of $4.4 billion declined 35% compared to Q2 last year. Our second quarter adjusted gross profit, or AGP, was also down 35% year-over-year, or $366 million, driven by a 45% decline in our Global Forwarding and a 36% decline in NAST. On a sequential basis, total company AGP was down 3%, driven by a 6% decline in NAST that was partially offset by a 1% increase in Global Forwarding and a 6% increase in the total of our other segments. On a monthly basis, compared to Q2 of last year, our total company AGP per business day was down 30% in April, down 39% in May, and down 37% in June. In our NAST truckload business, our Q2 volume declined by approximately 6.5% on a year-over-year basis. Within Q2, average daily volume in April was stronger than March, weakened in May and held in June, which resulted in a 0.5% sequential decline in Q2. During Q2, we had an approximate mix of 70% contractual volume and 30% transactional volume in our truckload business. Routing guide depth of tender in our managed services business, which is a proxy for the overall market, declined from 1.4 in Q2 of last year to 1.1 in the second quarter of this year, which is the lowest level we've seen for a full quarter since the recession of 2009. The sequential declines in our truckload linehaul cost per mile since Q2 of last year began to level off and increase sequentially in May and June, causing the June cost per mile to be only $ 0.2 below the March cost per mile. On a year-over-year basis, we saw a decline of approximately 19% in our average truckload linehaul cost per mile paid to carriers, excluding fuel surcharges. Due to the time lag for contract pricing to follow spot market costs, Q2 truckload linehaul pricing continued to decline on a sequential basis, resulting in a 23% year-over-year decline in our average linehaul rate for price build to our customers, excluding fuel surcharges. These changes resulted in a 41.5% year-over-year decrease in our truckload AGP per mile and AGP per shipment, with declines in both contractual and transactional AGP per shipment. This is the largest year-over-year decline in AGP per mile that we've experienced in the last 10 years and is in contrast to the 46.5% increase in Q2 last year. In our LTL business, shipments were flat on a year-over-year basis and up 5% sequentially. By leveraging our broad access to capacity in all modes of LTL and our high level of service, our LTL team continues to onboard a pipeline of new business that is offsetting the softness in the LTL market. AGP per order, however, declined 19% compared to Q2 last year, driven primarily by the market conditions and lower fuel prices. As I mentioned, market conditions in our Global Forwarding business were also soft behind weak demand and plenty of capacity. Despite that, our ocean and air volume each grew sequentially, exhibiting the progress our Global Forwarding team has made through adding new customers, diversifying trade lanes and verticals, and leveraging investments in technology and talent over the past several years. In Q2, Global Forwarding generated revenue of $780 million and AGP of approximately $179 million, which declined 45% year-over-year compared to the record high from Q2 last year. Within these results, our ocean forwarding AGP declined by 53% year-over-year, compared to 51% growth in Q2 of 2022. The Q2 results were driven by a 49.5% decrease in AGP per shipment and a 7% decrease in shipments. Turning to expenses. We delivered on our expense reduction and productivity expectations for the quarter. Q2 personnel expenses were $377.3 million, including $13.1 million of restructuring charges, down 15.2% compared to Q2 of last year. Excluding the restructuring charges, our Q2 personnel expenses were down 18.1% year-over-year, primarily due to the cost optimization efforts and lower variable compensation. Our headcount was also down significantly in Q2, with ending headcount at 15,763, down 13.1% year-over-year. In Q2, we elevated our cost optimization efforts, which began in Q4 of last year, as we streamlined our workflows and removed waste to help ensure a more competitive and sustainable long-term cost structure. As a result, our shipments per person per day in NAST has increased by 12% year to date through Q2, and we remain on track to deliver on our target of 15% year-over-year improvement by Q4 of this year. I'd also note that we were able to achieve the productivity gains in a soft volume market, which sets us up well for when the market demand returns. Going forward, we expect continued improvements in shipments per person per day and the associated cost benefits through the remainder of 2023, as we streamline processes and improve customer outcomes with technology that supports our people and processes. As a result of the progress on our cost optimization efforts, we now expect 2023 personnel expenses to be toward the lower end of the $1.45 billion-$1.55 billion range that we previously provided. As a reminder, our expense guidance excludes restructuring expenses. Moving to SG&A, Q2 expenses were $155.6 million and included $1 million of restructuring charges. Excluding the Q2 restructuring charges and last year's $25.3 million gain on the sale leaseback of our Kansas City Regional Center in Q2, SG&A expenses were up approximately 8.5% compared to Q2 of last year, primarily due to increases in claims and warehouse expenses. We continue to expect our 2023 SG&A expenses to be $575 million-$625 million, including $90 million-$100 million of depreciation and amortization expense. As you may recall from our Q1 earnings call, we raised our cost savings commitment to $300 million of net annualized cost savings by Q4 of this year, compared to the annualized run rate of the Q3 expenses from last year. We continue to be on track to deliver those expense reductions, and the majority are expected to be longer term structural changes to our cost base that will help us improve operating margins once demand returns. Q2 interest and other expense totaled $18.3 million, down $9.1 million versus Q2 last year. Q2 included $23.2 million of interest expense, up $6.3 million versus Q2 of last year, due to higher variable interest rates against a reduced debt load. Q2 also included a $3.5 million gain on foreign currency revaluation and realized foreign currency gains and losses, compared to a $10.3 million loss in Q2 last year, with both driven by various foreign currency impacts on intercompany assets and liabilities. As a reminder, our FX impacts are predominantly non-cash gains and losses. Our Q2 tax rate came in at 14.9%, compared to 21.3% in Q2 of 2022. The lower tax rate was driven by lower pre-tax income and incremental benefits from tax credits and incentives. We now expect our 2023 full year effective tax rate to be in the range of 16%-18%, assuming no meaningful changes to federal, state, or international tax policy. Adjusted or non-GAAP earnings per share, excluding the $14.1 million of restructuring charges, was $0.90. Excluding the $25.3 million gain from Q2 last year, non-GAAP earnings per share was down 64%, compared to the 75% increase in Q2 last year. Turning to cash flow, Q2 cash flow generated by operations was approximately $225 million, compared to the $265 million in Q2 of 2022, demonstrating our ability to generate cash and make investments in the business through the freight cycle. The year-over-year decline in our cash flow was driven by a $251 million decrease in net income, partially offset by a $144 million sequential decrease in net operating working capital in Q2, resulting from the declining cost and price of ocean and truckload transportation. Over the last four quarters, as the cost and price of purchased transportation have come down, we have realized a benefit to working capital and operating cash flow of more than $1.4 billion. In Q2, our capital expenditures were $24.4 million, compared to $43.2 million in Q2 of last year, and we continue to expect our 2023 capital expenditures to be in the range of $90 million-$100 million. We returned $106 million of cash to shareholders in Q2, through $73 million of cash dividends and $33 million of share repurchases. The cash returned to shareholders exceeded net income, but was down 74% versus Q2 last year, driven by the $137 million of cash used to reduce debt. On to the balance sheet highlights. We ended Q2 with approximately $1.1 billion of liquidity, comprised of $859 million of committed funding under our credit facilities, and a cash balance of $210 million. Our debt balance at the end of Q2 was $1.74 billion, which includes debt paydown of $532 million versus Q2 last year. Our net debt to EBITDA leverage at the end of Q2 was 1.81 times, up from 1.39 times at the end of Q1. Our capital allocation strategy is grounded in maintaining an investment-grade credit rating, which allows us to optimize our weighted average cost of capital. With the year-over-year earnings reduction and the $500 million of debt paydown, we'll continue to manage our capital structure to maintain our investment-grade credit rating. As you would expect, the cash that we use to reduce debt generally reduces the amount of cash available for share repurchases. Over the long term, we remain committed to growing our quarterly cash dividend in alignment with long-term EBITDA growth. Our dividends and share repurchase program are important levers to enhance shareholder value, as we are delivering quality customer service more efficiently than anyone in the marketplace. As we have demonstrated through the ups and downs of our highly cyclical freight market, the strength of our business model makes us a reliable partner for our customers and allows us to invest through the cycle. Our customers value the stability and reliability that we provide as we work to optimize their transportation needs. I'd like to close by adding that I am incredibly excited about the direction we are headed and our ability to build on the productivity and cost control progress that we've made. By leveraging lean principles to reduce waste and the emerging benefits of our combination of machine learning and Generative AI across our scaled model, we are positioned well to deliver greater efficiency and improved competitiveness in the marketplace to generate greater value for Robinson shareholders. With that, I'll turn the call over to Arun to provide more details on our efforts to strengthen our customer and carrier experience and improve our efficiency and operating leverage. Thanks, Mike. Good afternoon, everyone. In the second quarter, our single-threaded cross-functional teams made great progress on improving customer outcomes with technology that supports our people and processes. Our enhanced Carrier Advantage Program has significantly improved our automated tracking and advanced visibility capabilities, and those efforts are being recognized by our customers and multiple third parties. In our LTL business, our team is leading the way as an early adopter of electronic bill of lading, which has enhanced our digital connectivity with our LTL carriers and enabled us to eliminate unnecessary work and achieve gains in efficiency and accuracy. All the initiatives and work streams of our teams are targeted at improving productivity and accelerating growth with disciplined product and change management. Over the last six months, we've increased our focus on opportunities to streamline processes that are core to improving the customer and carrier experience, and enabling us to decouple volume and headcount growth, and drive increased productivity. Shipments per person per day is a key metric that we use to measure our productivity improvements, and as Mike mentioned earlier, we've achieved a 12% year-to-date improvement through Q2 as we progress towards our goal of 15% year-over-year improvement by Q4 of this year. In order to reach our 2023 goal, we have accelerated the digital execution of critical touch points in the life cycle of a load, thereby reducing the number of manual tasks per shipment and the time per task. A few areas where we have seen this progress include increasing the automation of in-transit tracking, case management tasks, and appointment-related tasks. As Dave mentioned earlier, we've also been using machine learning, artificial intelligence, and our large data estate to improve outcomes for our customers and carriers. Machine learning alone has limitations due to a need for standardization. Generative AI and large language models have the ability to work with unstructured and incomplete data and unstructured task flows to create an automation unlock. One example of where this can be used is in order management. Over the years, manual processes or workarounds have been put in place to serve our customers and carriers in customized, and therefore unstructured ways, such as receiving orders and providing quotes through email. As you can imagine, these have highly variable levels of information completeness and a fragmented mix of formats. Generative AI can be used to fill in the blanks where there's incomplete and unstructured information in a highly automated and efficient process. Our early testing and results from Generative AI are promising. We're excited about the potential for this technology to be an accelerant to automation and productivity improvements, and to magnify our information advantage. With that, I'll turn the call back over to Dave for his final comments. Thanks, Arun. C.H. Robinson is a great company with the largest market share, the most developed freight brokers network, long-standing relationships with global blue-chip customers, deep carrier relations, strong technology, and a larger data set than any other market participant. While the near-term freight environment presents some challenges, the strength of our people, scaled network, financial model, and investments in improving efficiency position us well for the eventual rebound. I see an opportunity for the company to reach its full potential and create more shareholder value by improving our value proposition, increasing our market share, accelerating growth, improving our efficiency and operating margins, and increasing overall profitability. Robinson has great people with a passion for winning and the grit, grind, and hustle needed to innovate and solve challenges for our customers and carriers. To enable greater agility and flexibility and to accelerate our clock speed, I'm empowering our people to uncover new ways to challenge the status quo, move faster, and act boldly to better anticipate our customers' needs, exceed their expectations, and make us indispensable. Shippers are looking for stable and innovative logistics partners. Robinson has shown the strength of its model through cycles. Our balance sheet continues to be strong, and we plan to invest in initiatives that we expect to amplify the expertise of our people and generate high returns on investment. I'm excited about our opportunities and our future. This concludes our prepared remarks. I'll turn it back to Donna now for the Q&A portion of the call. Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Once again, that is star one to register a question at this time. Today's first question is coming from Jack Atkins of Stephens. Please go ahead. Okay, great. Good evening, Dave, congratulations on your new role at C.H. Robinson. Thanks, Jack. I guess I'd love to start going back to something that you mentioned in both your prepared remarks and also in the press release. It's making C.H. Robinson essential. I guess my first question is, or just broadly, like, what is, you know, what about C.H. Robinson right now isn't essential? Because I look at a company with unparalleled scale in the marketplace, a leading technology platform. What do you think you need to do differently as a company to really, you know, make yourself essential in what is ultimately a highly commoditized part of the transportation supply chain, which is brokerage? Yeah, thanks, Jack, pleasure to virtually meet you. I, I look forward to meeting you in person here over the, the, the coming weeks. When, when I think about that question, Jack, it's a couple things. You're, you're right, and I agree with you, C.H. Robinson is essential, and it's going to continue, as I look at it, it's going to continue to have a situation where we can pick up customers organically, so everyone sees the value and the advantage of doing business with Robinson. Some of the ways of doing that is I consider myself a lean practitioner, as I said in my comments. Driving the company to think faster, act faster, reduce waste. These are things that are going to take a strong company and make it stronger, right? We're going to be laser-focused on that. Speed is, is imperative, but speed is, is powerful, Jack, as you know, and in this market, with this scale, as this company continues to increase its clock speed, as it continues to use technology as an enabler with its people, I think that is going to just enhance us to allow us to drive profitable growth and continue to along with our strong balance sheet. It just makes me excited and validates why I chose to come here. That's what I would-- that's what I'd say to that. Okay. Thank you. Thank you. The next question is coming from Scott Group of Wolfe Research. Please go ahead. Hey, thanks, and congrats, Dave. Look forward to meeting you next week. You got it, Scott. I guess a, a near-term, near-term question and a longer-term question. Just, you know, help us think about the puts and takes on, you know, sequential net revenue and earnings trends from second quarter to third quarter. Do you think we should be higher or lower? Just, Dave, maybe too early to ask, but just as I think about the margin opportunity longer term that, that you talked about, right? This used to be a 40% net operating margin business. This year, probably closer to 20%. What, what do you think is the right margin range to think about for CH over time? Can we get back to, to where we were? Yeah. Thanks a lot, Scott. Hey, I look forward to meeting you as well. Mike, why don't you jump in? It's a good, good question, and I'll let you jump in on that. Yeah, Scott, first of all, on the first part of your question, just thinking about the outlook on, as you said, net revenue margin or AGP, Q2 to Q3, you know, I'd point to a few things. First of all, obviously, we're in a market that has been weak, and, you know, no matter how you look at it, we've come a long way since Q2 of last year, when we were sitting on record highs across the board, you know, particularly in our biggest service lines, truckload and ocean. As we sit here today, you know, you've got the demand factor, and you got the capacity factor, and on the demand side, you know, that's a macroeconomics trends thing. You know, as we look at our shippers and the way they've been seeing the market and acting, they've been working on inventories here for, Jesus, seems like almost a year now, they've been trying to work them down and optimize them. You know, have they got there? Are they there yet? You know, can we expect demand to come back there? You know, we'll, we'll see where that heads. On the capacity side, you know, we've been bouncing on the bottom in terms of the cost per mile for carriers, in terms of where their break-even is, is at. You know, qualitatively, I think capacity is probably coming out of the market. I think it's tough for some of the carriers. They're probably more likely now to be parking the truck and finding employment elsewhere, given the good economy. I think on the capacity side, you know, we probably are, are, are close to the bottom. You know, as you, as you go forward, you know, one of the things that we provide for you in terms of forecasting is on our website, chrobinson.com, under Resources, we've got a section called North American Freight Market Insights, and we provide a forecast of DAT linehaul cost per mile for van, for not only the remainder of 2023, but also we've, we've added another year to it now, and we're, we're giving you 2024. If you look at that, I think it's really important. The reason we, we give you cost is because, as you know, in this market, in truckload, price follows cost. You know, that gets right to the root of the issue for us here in Q2 and probably in Q3, which is because we have a significant portion of our business that is contract, where the prices are established and set for most frequently one year, when the cost side of the equation has been coming down like it has, and it takes a while. There's a lag there between, you know, when we're renegotiating those contracts with shippers. So if there's a lag on pricing, and that's been coming down. You know, one of the key things from a margin standpoint for us in the quarter was the fact that price came down 23%, but cost came down 19%, and that's that price catching up with cost. That's margin compression for us. It's, it's not what we would expect going forward. It's, you know, you, you see that through the cycle. That's the point in the cycle that we're at right now. There's a little bit of extra margin compression there that'll work itself out over time as cost leads price. When you're back on that website looking at our forecast, you'll see that we've got costs going up for the remainder of this year. We're kind of, you know, at the bottom in terms of our forecast now. Then, you know, as, as you get to the, you know, the holidays, you see a little spike up, and then, you know, it comes down a little bit, and then we see it really getting back to normal as you get through 2024. A pretty dramatic increase in cost there, and of course, price will follow as we get into new contracts with our shippers. 40%, 40% operating margin? I mean- Yeah. On the 40% operating margin, you know, that's the target that we've got out there for NAST. It's been out there for quite a while. There are different dynamics going on there that impact that. I'll tell you what, we feel really good about the progress that we've made on productivity. We reported, you know, the shipments per person per day on NAST. You know, we put a target out there to improve that by 15% on the year. You know, we're six months into the year, and we're at 12% already, and that's on the back of some really quality work from the teams, looking at where we're spending our dollars, where we're spending our time, and taking that waste out of our system and translating that into productivity. You saw that on those numbers. You know, those efforts will continue. You know, we've got plenty to do there on that front. We're really excited about Dave's leadership and lean, as a lean practitioner. I believe in those Lean principles and worked in that environment in the past. It's a really methodical way to find waste, to eliminate waste, in, you know, an analytical, data-driven kind of way. So we'll continue to be able to take costs out there. We talked about machine learning and Generative AI, and I, I really believe that Robinson is in a unique position in that regard. Unique because we have a scaled business with an enormous amount of data, and because of our history, it's to some extent unstructured. From a machine learning standpoint, the key for us has been to, you know, standardize and automate. One of the great compliments from Generative AI is the ability to go in and find inconsistencies, missing data, and actually take it through to getting that data and reinserting it and plugging it back into our machine learning. So there's really some great complementary things there that can help us with our productivity and allow our folks really to focus on quality and more strategic work with our customers. I think that inside of that, you get growth, inside of that, you get efficiency, and the growth and efficiency continue to keep us on our 40% operating income margin for NAST. I don't know, Arun, if you've got. No. All right. Covered it. Yeah. Thank you, guys. Thank you. The next question is coming from David Vernon of Bernstein. Please go ahead. Hey, good afternoon, guys. Thanks for taking the question. So Dave, first question for you is, is really kind of your background in, in some of the other, maybe more disruptive parts of the brokerage industry that have shown an ability to take quite a bit of share in very short periods of time. You know, what's different about them versus what Robinson's been doing recently? Then how do you think about, you know, the moat of C.H. Robinson, having been kind of on the other side of the barricades, you know, throwing barrels of burning oil at the company? How do you think about the moat of C.H. Robinson? Yeah, good question, pleasure to virtually meet you as well. You're right, I have been on a couple of sides of this, and number one, I'd say with the, the, the players coming in, I, I feel good about that because of the work we did at Amazon when I was there and, and, and building some of this new entrant work here. I understand it. I understand the importance of technology and the power that it can play in the digital transformation here. The key here, from a Robinson perspective is I think you have both, and I know the importance of that, of that scale. I know, having scale plus the technology will drive that competitive advantage. As we continue to- you know, someone asked me, said, "Hey, Dave, what's something that surprised you, right, as you came to Robinson?" I'll tell you, one of the things that surprised me is you come in and people will say, "Hey, that's a, that's a fax machine company, right? They're older." When actually, coming in, some of the technology and state-of-the-art things that Arun has put in and continues to grow, was surprising because this is a company that is really on the leading edge with technology, and then adding scale to it, it just says, and I know this from being on both sides, that this is a competitive advantage and really allows this company to set the tone in the marketplace. That's how I'm answering that from both sides of it. You know, when you talk about the moat, it's about just making sure we stay focused, driving waste out. I just spent a lot of time over the last several weeks, doing what I call a gemba. That's a go see. You actually go see the work. It taught me a couple things. One, the strength of our employees that are out there, but two, it allowed me to see the waste and the potential error states in the work so that you can fix them and fix them fast. As we take this waste out, you'll clearly see the speed of improvement on an already scaled, strong business. That's why I feel so, so happy about where we are and eventually, when this, this upturn comes, where we will be from a, from a positioning perspective. All right. Thanks for that. Maybe just as a, as a quick follow-up, you know, we're talking a lot about lean, we're talking a lot about process improvement. You know, from a mand- can you talk to the mandate you have from the board? Are we really just kind of focused on improving what Robinson does, the how of what it does, or are we still also looking at the what of it, the what of it, in terms of maybe some structural change to the business? I think there was some discussion with the, with one of the activist shareholders a while back about a strategic committee. Can you give us a sense for kind of what the marching orders are from the board, from your perspective? Yeah, I will tell you, from the, from the board, I, I am, locked in with the, with the board. I have a, a, a clear connection, with the board, and, and that is, driving profitable growth, for, for our shareholders and, and for this company. It's pretty clear on, on where we're gonna do that. I'm taking my time to, to diagnose, analyze. I will, I will speak to the board on, when I get through my diagnosis, phase. The true north is, is continuing to improve, this company with, with profitable growth, and, I'm locked in on that. The principles that I have found successful in other companies, I'm just gonna bring those forward, in Robinson, and, I know those are, are successful to do that. All right. Thanks very much for the time. I look forward to meeting you. You got it. I look forward as well. Thank you. The next question is coming from Christopher Kuhn of The Benchmark Company. Please go ahead. Yeah, hi, good afternoon, and good to meet you virtually, Dave. I wanted to just go back to your comments when you first started your conversation about taking a look at the portfolio and, and your, on your thoughts there, and what you're gonna be looking for going forward. Yeah, nice to meet you, as well. From a portfolio perspective, same thing. It's early days, right, on this, and, and I'm, and I'm driving in, but my, my point is clear, is I'm looking at the entire business, and as I said, with an open mind on the portfolio. Make no doubt about it, right? There's a, there's a clear focus on driving focus within the organization on some of these, the, the core business, and we all know, you know, truckload, and making sure we drive truckload, LTL, ocean, air, really driving that kind of focus on those portfolios. With all the other businesses, you know, continuing to evaluate, you know, how we best unlock that additional value, for our shareholders. It's an open mind approach. It's early days. I'm diagnosing, I'm diagnosing hard, certainly we'll come back to that, but just wanted to give a little bit of color to that. Okay. Okay, great. Thanks. Thank you. The next question is coming from Jason Seidl of TD Cowen. Please go ahead. Yeah, thank you, operator. Dave, good to, good to meet you, and welcome aboard. You know, it, it sounds like everything's still on the table as you're in your diagnosis mode. I'm going to, I'm going to sort of laser in on a few things. You talked a lot about some exciting opportunities in Generative AI, and, and, you know, when, when I look at the electronic opportunities in brokerage, I think sort of the one sticking point has always been sort of getting the drivers, over to sort of embrace technology. What are some things that you think CH can do better to sort of grow that presence on the driver side? Yeah, pleasure to meet you, and great question, 'cause there's a lot of ways to, to go into this. I mean, Arun, why don't you start off? Yeah. I'll finish on a couple of things here. Yeah, I think, you know, for those of you who've been, who've been listening in for a while, you know this, when I came on board, you know, we made a, we made a sustained investment in our carrier-facing app and website. You know, we've seen huge, huge uptake in usage in terms of digital bookings. From a, from a carrier-facing technology perspective, there's two things that carriers care about, right? They care about sort of access to volume and loads, which we have, and they care about a better experience. So things like load recommendations, you know, getting paid fast if they choose to. So, so a better experience, and we've invested a lot in the, in those, in those areas. Like I said, digital bookings are up significantly, and more recently, you probably saw us release or go live with our, with our refreshed Carrier Advantage Program, which is our loyalty program. With that program, you know, we had sort of new requirements of our carriers in terms of providing track and trace, automated track and trace through the app and through ELD. What I can say is, you know, carriers ask us- when we ask them for things, they say, "Well, okay, well, tell us what you need." And when we make that easy to use in the app, they do it. Likewise, we listen to them about what they want, and we invest in the carrier experience. I would say, compared to some of our competition, I'd say, you know, we have all the features that our carriers have asked for, and we have the volume of loads, that no one, that no one can bring to the table. Yeah, I'd just plus one on that. I agree with Arun there. In previous experience in seeing the teams build these things that it's about ease of use. It's really about allowing those those carriers to get the things that they want, such as such as pay and access to to loads. I think he hit on all the key points, that when you do that. That spreads, right? When you hear about the ease of use. It's a good question. I'm glad you said it because it highlights kind of where we're where we are in this space and where we're going to continue to go. Thanks for asking that. Oh, sure, and I appreciate the color. As a quick follow-up, when I look at Forwarding on the EBIT margins, if I sort of throw away the inflated numbers on the pandemic side, it looks like you guys have been in the sort of 15%-20% range. We're sort of probably going to be at the lower end this year at that. You know, what's it going to take to sort of get us towards the higher end and out of the way from the lower end? Is it just going to be an improvement in the overall macro, or are there other things that you think are going to be low-hanging fruit that can get you there? Yeah, thanks for the question, Jason. You're right. You have to look through the markets that we've experienced here over the past couple of years. Obviously, the comp this quarter is against all-time record highs on record highs from Q2 last year. Our long-term operating income margin goal for Global Forwarding is 30%. We feel like that's achievable. The playbook there is in a lot of respects, similar to the playbook that we've got on the Nav side. In other words, you know, the team has done a really nice job developing their capability from a technology standpoint. There's plenty of excitement out there around Navisphere 2.0, and that was launched, and, you know, the customers are having a better experience there. We're seeing monthly average users go up, track and trace better, data quality better, feature usage by customers better. On the tech side, that's great. Operational uniformity is an important element for them there. The standardization in a very complex business, to create efficiency, Generative AI can help as well there. You know, scale is something that the team's been working on. They've done a really nice job here through the ups and downs of the market to gain market share and increase the scale in that business, which will be important to getting the returns where we need them to be going forward. They, you know, probably the biggest highlight over the past year has been their expense management. They've taken headcount down by about 12% year-over-year, and at the same time, they've been able to handle the loads and handle the volume that, that they've been working on. You know, that's been a really nice enhancement that should really serve them well once we get back to some more normalization there. The last thing I'd say is the development of their business. You know, they've done a nice job of bringing some, some talent in, and some new geographies. They're looking at new verticals, and they've had a fair amount of success in new trade lanes and opening up to, to some places that they haven't had a developed business in the past. They're, they're getting excellent results. They're number three in the Trans- Pacific to U.S., number two in India to U.S., and number one in U.S.- Oceania. A lot of great progress from the team there, and I think all those factors are important in coming together to get back to a more normalized 30% operating income margin. Well, we're looking forward to seeing more progress. I appreciate the thoughts, and Dave, looking forward to seeing you in Boston next month. Absolutely, Jason, I'm looking forward to it. Thank you. The next question is coming from Matthew Spahn of TCW. Please go ahead. Thank you, operator. Congratulations, Dave, and welcome to C.H. Robinson. I have a question about engagement. When a company has highly engaged employees, quality and delivery improve. In drawing on your prior experiences leading lean transformations, can you share one or two learnings that you can apply to foster a culture of deeper employee engagement at C.H. Robinson? Yeah, great question. Matthew, and pleasure to meet you. This is the cold face for me, right? I'm meeting everyone for the first time here in, in some cases. The good question. Let me, let me break that down for me, and I'll be pretty pointed here. The, the one engagement that I, I see is number one, you, you really do need to be vocally self-critical about where you are on the things you do well and the things you don't. Having the ability to see employees actually see waste in their processes, and be able to understand that, understand what their process flow should be versus what it is, they actually get engaged on that improvement. Trying to improve when you're blind is one thing, but, improving when it's clear to you, makes for engagement. So that's, that's one thing as I've, as I've gone through various companies, it's, it's the enlightenment and the education around where you are, and then the humbleness to show how you can be better. Once that's laid out, employees, latch on to that, and I've seen it over four different companies. Thank you. I really appreciate that. I mean, it's, I, I appreciate that. I mean, the culture matters most right now. I mean, you're being, I feel like, the champion of Lean. You know, it's a powerful cultural enabler, so welcome and good luck. Thank you, sir. Thank you. The next question is coming from Stephanie Moore of Jefferies. Please go ahead. Hi, good afternoon, and Dave, congrats on your first earnings call. Thanks, Stephanie. Appreciate it. I think, you know, a lot was called out in your prepared remarks, you know, I think a number of exciting opportunities going forward. You know, what do you think is probably the single one most important area you'll place your focus on over the next 12 months? You know, what is your early read on, on how to achieve it? Thanks. Yeah, you know, that's a good question, Stephanie. It's one that can, can take us well past the call, so I won't do that. But I will, I will give you some, some color on it. The, the focus is around driving waste out with the end game of profitable growth and, and really getting the organization to latch on to faster speed of decisions, speed of innovation, and ultimately looking around corners to set itself up for what is gonna be an eventual turnaround. And that'll put us in a very strong position with our scale and our balance sheet. And so, you know, just focusing on that and then also technology. We talked a bit about it, Arun's talked a bit about it, these large language models. Again, don't underestimate just the scale of Robinson, and then attaching that level of technology on top of that, I think can be a strong competitive advantage for us. You know, me focusing on driving that adoption of that type of technology, driving waste out of the system, this all adds up to a profitable growth setup for this company and really puts it in a strong position. I feel, I feel really, really strong around where we are, and that's why I decided to take this move. Great. Appreciate the color. Thanks. Thank you. The next question is coming from Bruce Chan of Stifel. Please go ahead. Good afternoon, everyone. Dave, you know, congrats. It's good to have you with us. I know it's still pretty early in your tenure here, but I know you've hit the ground running. You know, maybe I could just coagulate some of the responses and, and get your perspective on, you know, where you see the biggest incremental cost buckets over the intermediate term. We talked a lot about, you know, Lean and, and waste, but where specifically do you see, you know, the biggest addressable opportunities there? Yeah, Bruce, I'm gonna, I'm gonna double team you here a bit because, you know, I'm 4.5, five weeks here on my, my diagnosis. I, I am gonna call a comma, not a period, on this question, because I do wanna continue to diagnose. I will tell you this, as I'm talking with Arun and team, it's breaking down this kind of life of an order, and, and really going through the origination of this order all the way through the end, and then, and then understanding those error states and pinch points along the way. That's gonna generate kind of where the, the cost opportunities are along that, along that line, along that cycle. I'm in the middle of doing that. I have some, some points that I see, but it's not complete. I think Arun sees some of that as well. I will come back to you on that, because it's a fair question, but I'm in the middle of it. Arun, would you add any other color to it? Yeah. I think, you know, the color I would add is similar things that we've been saying over the past, you know, call it 12-18 months. When asked about, sort of our, our path to operating leverage and, you know, our, our focus on digital, our focus has been looking at the end-to-end order life cycle, from quoting, to order tender, to order entry, to booking, then to appointments, track and trace, invoicing, the whole life cycle, right? The focus of our digital efforts has been looking at those points in the life cycle that are disproportionately manually intensive, and going after either automation or making self-serve to our customers or our carriers. In some cases, the processes don't even make sense. They're, they're legacy processes, and we, and we eliminate them. That's been the focus. Now you come in and, you know, kind of layer. In a way, it's about taking out waste. I think it's just that we've come at it more from a technology perspective. I think Dave's gonna come in here, and I think he's gonna inject Lean principles, and as we get the tailwind of GenAI, I believe the things we've been talking about for the past, you know, 12 or 18 months, just will accelerate. Okay, that's super helpful. Dave, you know, fair point about the, the brevity of your tenure. You know, maybe just to follow up a little bit on that and direct the question, you know, more again at you, Arun. You know, we've had some nice reductions here in personnel cost. Is the tech and the platform at a place now where we can grow in the next cycle without adding additional resources, or do we have a little bit more work to do? That's a great question. We obviously have more work to do, you know, we've talked, we've talked about 15% productivity improvements this year. The work that we've done to enable that productivity is structural. We can actually measure fewer touches in our system as a result of that work because we've got more automated track and trace information from our carriers, right? Which means we don't have to call carriers for status. Similarly, we've reduced the number of appointment tasks by automating a greater proportion of them. We actually see touches go down, touches per load go down, in a way that we know it's structural, as we go into the cycle, a positive cycle here. Great. Very helpful. Thank you, all. Yeah, thank you. Thank you. We're showing time for one final questioner today. Our final question will be coming from Chris Wetherbee of Citi. Please go ahead. Hey, thanks. Good afternoon, and thanks for squeezing me in. Congrats, Dave. I guess, one of the things I, I guess I've been sitting, listening to the call and, there's been discussion, sort of big picture and, the Generative AI opportunity, those kinds of things. Maybe a two-parter here. Short term, what do we think headcount looks like through the rest of the year? Are there further opportunities as we move through the rest of the year on the cost? It sounds like you guys are making maybe better progress towards those full-year goals, so that would be interesting. The second one kind of comes, we've talked about the segment-level operating margin targets, relatively similar to what they've been historically, but then big picture opportunities that maybe would generate greater productivity, potentially cost savings down the road. Just trying to square those two, the NAST and the Global Forwarding margin targets relative to the opportunity you guys are talking about with some of these productivity tools. Should there be upside or is it the same? I just want to make sure I understand that. Yeah, let me take that. First of all, you're right, we've had great progress on our headcount, down 13% year-over-year. You know, because of the efforts and initiatives that we have ongoing in place that will continue, and really, I think we've got a great pipeline of things to work on, we'll continue to draw that headcount down as we go forward and get to some of these things. Although, I would say the back half of 2023 won't be nearly as dramatic reductions as we saw in the first half. When you talk about those operating targets and the macro things, you know, we're trying to help you understand that we feel like we've got some accelerants here in terms of our ability to improve our performance, our efficiency, and get us to growth. The, you know, the, the headlines on those are lean principles, the, you know, diagnosing of our issues, finding waste, eliminating the waste, whether that's with technology, with process, with adoption, with, you know, giving self-serve to, to customers or carriers, these kinds of things. So, you know, that's one accelerant. The other accelerant, as we talked about, is really the combination of the machine learning work that we've been doing, but then enabled by Generative AI, where it can go in and it can find the exceptions and the work that really our people have been handling here historically. Where, you know, you build a model that handles things if everything's been input properly, and then our, in many cases, our staff was going after the exceptions. Now, with Generative AI, we've got the ability to do that in a more automated way and really enable our folks in ways that we haven't before. Those are the key headlines. Okay, but they don't necessarily change the curve of those targets. They're just sort of additive to the improvement off of the sort of where we are in the macro, is the right way to think about them? Yeah, the progress we've made so far. Yep. Okay. Thanks again, and congrats, Dave. Thank you, sir. Appreciate it. Thank you. At this time, I'd like to turn the floor back over to Mr. Ives for closing comments. That concludes today's earnings call. Thank you everyone for joining us today, and we look forward to talking to you again. Have a great evening. Ladies and gentlemen, thank you for your participation and interest in C.H. Robinson. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.