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trucking/freight optimization

Suggested by Tim Connors almost 3 years ago

trucking/freight optimization

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groups Can you Help?

Are you interested in addressing this Unmet Need?

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Simon Okeke 💡 Saurabh Jaiswal 💡
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Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

We concluded our Stage 1 review last week and agreed to move this one forward to Stage 2!

over 2 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

Great! What is needed in stage 2? Would love to be help out in anyway needed to move keep propelling this forward. @Jeremy Burton

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

over 2 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

Hey Team! Sorry I missed the last meeting there was a conflict in timing with a presentation I was making for my current work. I am still very interested in helping out and Kudos to you Gage on making an exchange happen. @Jeremy Burton &@Tim Connors I got feedback from Alex about highlights of the meeting including you all going back to do research to see when would be best to release this technology. I am open to help out with any research necessary with your team. Also I think a great way this technology can start being used is for companies like Jb Hunt, Xtra trailer lease etc that usually have empty trailers that need to be moved around, we could look into finding more companies that always need trailers moved around and our platform could help any one with a semi truck that needs to use a trailer from third party companies that let people utilize their trailer for a bit, and we could match them to routes that let them use the trailer deliver a load and they can hand it off to another person that is going a route that the trailer needs to be dropped off, while the current driver can pick a trailer from the other party as long as it is going on a route the driver needs to go. I can explain it better if you are open to another meeting. Thanks Team also applied for the Founder In Residence If needed for this project.

GL
over 2 years ago

CEO @ EsoTrans

@Jeremy Burton In a stroke of random circumstance, we're actually doing a trailer exchange today. It's not how we envisioned it, and may not prove exactly the efficiency gain in the way we wanted to, but here are the circumstances:

  1. We have a container load that needs to be delivered from SAV port to Rockford, TN today (hot load)
  2. Driver (A)originally dispatched on the load doesn't have enough hours (HOS) to make it there in one day to deliver
  3. He'll pull the box out of the port and meet at a location between Charleston and SAV on I-95
  4. A driver (B) coming from Charleston will bring an empty chassis that needs to be returned to SAV that they will exchange
  5. Driver A will return empty chassis to port to reload for delivery to same TN location tomorrow.


I can discuss today the challenges I've seen in our original model and what elements need to be in-place to execute.


I think the biggest questions to solve for is: what is the profile of company, driver, customer with which the original model works best, what specific problems are we solving for - how acute are those problems (WTP for solution), and what are the best incentives to motivate participation...aside from solving the problem for the paying customer.


The practical exchanges of the trailers themselves do not seem to be as big of a hurdle.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Great - good to know.

GL
over 2 years ago

CEO @ EsoTrans

@Jeremy Burton unfortunately, our customer reached out that they would not be running the route (that we planned to split) as planned this week because of a supply issue. they expect it to start back sometime next week but they're not sure when. we'll see if we can cobble together another lane in the meantime, but wanted to keep everyone abreast of the status of the test.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

That's a shame but such is life for early-stage ideas. Thanks for the update and I hope we find an alternative.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

@Gage Lewis should we schedule another call for next week to share results?

GL
over 2 years ago

CEO @ EsoTrans

@Jeremy Burton I am traveling on Thursday & Friday next week, so if we can talk sometime early the following week that might be best for me. We're aiming to have our first handoff completed next week, so I plan to share the results to review prior to our call, including Hour of Service (HOS) efficiency (drive, break, on/off-duty time) of the drivers/trucks, which we're able to capture with our electronic logging device (ELD).


I am currently working with my dispatcher to coordinate these runs into our dispatch schedule so it doesn't interrupt the flow of our existing operations, so it's taking a little time. This will be MUCH easier after the first or second time. Keep in mind, we're attempting to do this coordinating 2 different customers 2 drivers, 4 legs and not including the connecting dispatches leading up and following these two specific pickups and deliveries.


Lot of moving parts, but excited to make it happen!

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Sounds great, Gage. We'll get scheduling for the week after next.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

@Gage Lewis - are you feeling good about the first test?

over 2 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

Hi @Gage Lewis I am open to helping out to support in anyway you need. Even if it means helping out with supplementing the pay out of pocket to help with the driver situation. We should probably schedule a call to touch base on how things are going. I also have 2 truck drivers available in case we need extra contractors to support this effort & they are flexible about locations. Look forward to reconnecting everyone @Jeremy Burton @Tim Connors @Alex Smith

GL
over 2 years ago

CEO @ EsoTrans

@Simon Okeke , thanks - may take you up on that if needed. Are these drivers O/O w/ their own authority? Do they have their own trailers? Just trying to get sense of their profile.

over 2 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

Hey @Gage Lewis currently these drivers are looking for company driver positions, although I should have more owner operator type profiles coming in closer to end of the month. But if you just need support on the driver recruitment side. Always willing to help out on that, once I get some owner operators which I do think work better for these trials if they have they own equipment and are open to participating. Will send some your way.

GL
over 2 years ago

CEO @ EsoTrans

@Jeremy Burton Yes (for now!), but it will take until next week most likely before test is performed...driver(s) won't be officially onboarded until tomorrow or Friday (hiring is a lengthy process). Hardest part of this test is finding suitable route/ rate to make this work, not the actual exchange. It creates a break in our typical dispatch process since this is a one-off situation. Also, pay/rate on the split route will be a typical per mile rate, not the increased rate that would reflect say a team driven load where you gain a time efficiency. May have to supplement the pay out of pocket to accommodate the drivers. I'll update specific details on the matched driver/load as soon as possible.

over 2 years ago

Scientist- Process development

@Gage Lewis On the route, if you can give me a starting place or ending place. I can get you good handoff locations

GL
over 2 years ago

CEO @ EsoTrans

@Alex Smith Will do, thanks!

GL
over 2 years ago

CEO @ EsoTrans

@Alex Smith What's the ideal location b/t Spartanburg, SC & Cleburne, TX...and if you can coordinate two routes, La Porte, TX and Summerville, SC. We're planning Spartanburg and La Porte being the two origination points and Cleburne and Summerville being the two destinations.


over 2 years ago

Scientist- Process development

@Gage Lewis

403 SW Frontage Rd, Winona, MS 38967 looks like the best spot. It's about a 16 hr roundtrip for the Texas side and an 18hr round trip for the SC side

GL
over 2 years ago

CEO @ EsoTrans

Thanks. This would be a longer distance model (we had discussed 8-10 hr r/t) but the principles of time saving should be relative, even additional home-time for traditional over-the-road drivers.

over 2 years ago

Scientist- Process development

Definitely makes sense, especially in the context of longer routes

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Good call today. Pushing ahead with first test by end of next week (Sep 9)!

GL
over 2 years ago

CEO @ EsoTrans

We've recruited two drivers out of the Houston, TX area that will be a good match for splitting routes with our SC based drivers. While we work on onboarding them next week, we are prospecting customers with lanes/routes/rates where this test will lineup best.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Amazing!

GL
over 2 years ago

CEO @ EsoTrans

Transposing some thoughts from a previous email exchange:


Visualizing a radius (maximum range) centered on a driver's domicile and then seeing where there is overlap (guess that's a venn diagram) will be important to understand the relationship/ proximity between drivers, trailer exchange points, and freight orig/dest locations.


Drivers and freight are the chicken/ egg problem to solve. You may be able to cheat a bit and find freight, like Alexander has done, in locations where there is the largest recurring volume, so recruiting a driver in those locations (orig/dest) will be the safest bet to start. Reliability of the freight (contract would be much better than spot) will provide "dedicated" lanes, which is usually ideal for a driver because of the reliability of income, familiarity with route and customer (requirements, load times, etc).


I still think there is a problem to solve around how freight is acquired. There are 3 options I can see at the moment:

1. Be a brokerage - acquire customers directly and post loads onto the platform to broker to carriers & owner operators

2. Be a carrier - pull freight down from brokerages (on load boards) and haul with your own drivers (1099 or W-2) you've matched to the freight. You can also be an agency of a larger carrier (like I am), thereby reducing liability and overhead for a 10-15% gross rev fee.

3. Be a pure platform/ marketplace - acquire carrier & owner operators to be on one side of the marketplace and acquire customers (shippers, 3PL's etc) to be on the other side posting loads


#3 is the most scalable but the most complex and probably the most expensive to achieve - typical of many marketplaces. Or, you become an integrative tool within an existing marketplace(s) (DAT, Truckstop, etc) that optimizes the function of splitting routes and matching drivers.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Super helpful - thanks.


My gut tells me there will be an evolution through different models as this develops.


To your last point, I don't think merely being a tool is interesting from a venture perspective - we need to be in the flow of funds, and able to make money on arbitrage, to make it big enough for venture $.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

@Gage Lewis - wondering if you managed to get any info on the insurance aspects?

GL
over 2 years ago

CEO @ EsoTrans

When trailer "pooling" a 53' standard van (either owning or leasing) for example, you can add multiple drivers to the roster on the policy. Controls like load/unload (self) inspections need to be in place to ensure proper responsibility for safety and damage. There's some good fleet management products out there like a feature from Fleetio that assists with inspections from a smart phone.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Got it. So, if we have one chassis being moved rig to rig, with changeovers between legs, we can insure the chassis and load under one umbrella, end-to-end?

GL
over 2 years ago

CEO @ EsoTrans

Correct. Works a little different between dry van trailer and container chassis depending on who owns the container chassis...but both essentially the same.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Great conversation just now with @Gage Lewis - a lot of learnings from his experience with DriveMatch to help leapfrog some challenges. He'll be on next week's call too!

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Looking forward to seeing how we can do an initial validation of the concept in a semi-automated way.


I'd like to validate that:

  • we can bid on a route and divide it into 2 legs
  • we can get 2 drivers to pick up each leg
  • the drivers can successfully handover between legs


Ideally, we'd also validate that the time taken is shorter and the drivers are happier.


If we can do this 10 times successfully, I think we'll feel great about making the investment to build a fuller solution.

GL
over 2 years ago

CEO @ EsoTrans

Thought I'd add a few thoughts to the conversation. Companies like TCW do this manually in two different ways b/c there is certainly efficiency in the model. They are an asset based carrier (own a fleet of trucks) and have a combination of independent contractors or owner/ops (1099 w/ own trucks) and company drivers (W-9 driving fleet trucks)

  1. Slip-seat (company drivers) - TCW keeps their own trucks running continuously by exchanging (company) drivers at certain terminal locations. These drivers are usually on a night or a day shift. Runs are usually 4-5 hours per leg to stay in the 11 hours of drive time/ 14hrs of service.
  2. Hub & Spoke (company & independent) - trailer/ chassis exchanges at locations like their terminals or truckstops

Few things to consider:

  1. Typically longer hauls (mileage) = lower rate per mile. However, if delivery times can be sped up, rates could increase depending on time demand (hot load). So, would need to ensure that the pay is proportional to driver sentiment.
  2. Winning loads off a board is only good when spot market is strong. Contracted freight should be considered as well. Eliminate the middle man and be the broker. And remember, you can't double broker...so taking a load from a broker (off a load board) and then giving it to an owner/op with their own authority is double brokering if you're not the carrier. Develop business directly with shipper to avoid this, but you'll need to be the carrier or the broker, which are both regulated and come with their own levels of scalability, liability, cost and margin.
  3. Trailers are typically owned by the carrier or the owner/op...if exchanging a trailer between two owner/ops, who owns the trailer? Some large carriers like JB Hunt and Schneider run power only (you only need a truck) where they own the trailer and I/C's deliver.
  4. Validating insurance, safety, etc with Owner/Ops will be an important factor, but nothing a typical brokerage doesn't already do.



Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

The trailer question is interesting. Do the carriers and owner/ops typically own them outright, or are their loan or lease providers of trailers?

GL
over 2 years ago

CEO @ EsoTrans

Not sure the % but a combination of owned & leased.

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Very useful - thanks.


When you say "TCW", I'm assuming this is who you are referring to:


https://www.tcwonline.com/

GL
over 2 years ago

CEO @ EsoTrans

Correct. Have a former ops guy from there on my team at Congaree Logistics.

Tim Connors core team
almost 3 years ago

Founder, MD @ PivotNorth Capital

fun chat with @Alex Smith yesterday on this! progress!

Tim Connors core team
over 2 years ago

Founder, MD @ PivotNorth Capital

@Jeremy Burton had a great chat with @Simon Okeke today. would be interesting if you two and alex had a zoom.

over 2 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

It was a pleasure to connect with @Jeremy Burton & @Alex Smith Yesterday, really enjoyed our conversation and look forward to reconnecting.


over 2 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

It was a pleasure talking with you @Tim Connors I look forward to future discussions with @Jeremy Burton & Alex. Thanks!

Jeremy Burton core team
over 2 years ago

CEO | Founder | Managing Partner @ Platform Venture Studio

Sounds good. I’m traveling currently but I’ll get the wheels moving to schedule.

almost 3 years ago

Founder & CEO of https://loadzpro.ai On Demand Shipping & Trucking App utilizing AI & Machine Learning to keep trucking business more profitable @ https://Loadzpro.Ai

Hi @Tim Connors I am the Founder and CEO of a 6 figure generating Digital Freight Brokerage still early stage and seeing some great traction. Building an AI powered Logistics Management solution that will distrupt the Trucking industry called Loadzpro and would love to learn how I could work with Platform studio on this project. My beta testing bootstrapping with my website on Jetstarlogisticz.com is doing well and we are seeing customer growth month over month. Look forward to connecting and hearing from you.

Tim Connors core team
almost 3 years ago

Founder, MD @ PivotNorth Capital

email me at tim@pivotnorth.com

AK
almost 3 years ago

Account Manager

Hi Tim, I love this idea. I know JB Hunt does this now but I'm not sure if only company drivers can access or Owner Operators, its called JB Hunt Load Board.


I'm also answering Saurabh comments below in red:

  • Is the handover idea to decouple the "tractor unit" and hitch a new one instead of unload truck 1 -> load truck 2? I am assuming this is where a lot of the downtime for said drivers would also come in. A lot of drivers like to spend their time at stops like flying J to take a shower, eat even get their truck cleaned. So this would be a great place for this handoff.
  • Related: one critique of this would be that since you're asking for a lot more handoffs, in the worst case, a nice middle-ground solution would need to be found for a driver between "travelling super long hauls" (very little benefit from using this) and "trivially short trips" (too many handoffs, eats into actual time on the road the cargo experiences). I understand this is the kind of problem one would try to solve way past the writeup stage. them. Owner Operators would be a great fit for this type of business. You also have to think about whom ever books the load and is responsible for its safe delivery would have to be okay/approve the trucker who is now hauling it bc they would essentially be working for the original booker and assume their DOT #.

There is a large trucking company doing this now for their company drivers and approved Owner Operators, its called Load Board, and for the shipper side its called Carrier 360.


almost 3 years ago

Catching bad guys with network science! @ Google

Thanks @Amberlee Keister - this is super helpful! It does fill in a lot of gaps I had in my understanding of the problem space.

FK
almost 3 years ago

Advisor, Product Strategy @ Various Startups

Ran into these guys at Techcrunch Mobility:


https://soloavt.com/

https://freightsafe.co/


Might be of interest to you.

TM
almost 3 years ago

Managing Director @ Pioneer Square Labs

Convoy is working part of this. Outgo (https://www.outgo.co/) (PSL Fund company) is working on another, but it's a very big industry so likely many more solutions will emerge.

Tim Connors core team
almost 3 years ago

Founder, MD @ PivotNorth Capital

almost 3 years ago

Catching bad guys with network science! @ Google

Hi Tim, thanks for the idea and writeup on this. Sounds fascinating! I love the Pony Express analogy here - it's powerful enough in getting ahead of most questions. I read the writeup numerous times and have a couple of questions:

  • How is the CAC not needed? Are we assuming the large buy-in from PFJ upfront is the CAC, after which the per-new-driver CAC is moot? If so, I understand, if not, I'm unclear on this.
  • Is the handover idea to decouple the "tractor unit" and hitch a new one instead of unload truck 1 -> load truck 2? I am assuming this is where a lot of the downtime for said drivers would also come in.
  • Related: one critique of this would be that since you're asking for a lot more handoffs, in the worst case, a nice middle-ground solution would need to be found for a driver between "travelling super long hauls" (very little benefit from using this) and "trivially short trips" (too many handoffs, eats into actual time on the road the cargo experiences). I understand this is the kind of problem one would try to solve way past the writeup stage.

(I know very little about big rigs and am coming at this from a networked view of supply chains)

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