RightChain Routing Transcript

6

Dr. Frazelle (19:57): You start interchanging, that's it. You start different seed points, [00:20:00] you try different clusters and you iterate that little heuristic. It's called cluster first, route second and interchange. And if you ever wondered what in the world's going on in the software, that's what's going on right there. The way the time windows work is you would have, let's say on here, you would have 3:00 PM to 5:00 PM 1:00 PM to 6:00 PM and that's just the next level of complication on here, so [00:20:30] the more advanced routing packages will have that included. There's some other tricks of the trade with routing and scheduling. These are routing principles and best practices. One is called pooling and consolidation. This is Polo Ralph. Lauren, what commodities of product does Ralph Lauren work with? Sweaters, shirts, pants, swimwear, [00:21:00] bedding. From a manufacturing standpoint, there are pockets of places that really get good at making a certain type of commodity like furniture. Dr. Frazelle (21:11): In High Point now it's actually in Indonesia carpet in Dalton, Georgia. The sourcing folks of the world have gone out and helped build up these bases of supply. Let's suppose sweaters are made in Sri Long Church from Korea pants in Malaysia, and these are all [00:21:30] in quantities that are less than a full container load. This is the ocean shipping and in the end, they all need to wind up in Long Beach. So would it be better to ship a portion of a full container load straight from Sri Lanka to Long Beach and one from Malaysia to Long Beach and one from Korea to Long Beach and one from the Philippines to Long Beach? [00:22:00] Or is it better to consolidate all of that merchandise into a full container load for the trip to Long Beach? Dr. Frazelle (22:14): Which is better? You got to run the numbers on it in general, depending on, lemme ask you, what does it depend on? It depends on the LCL rate from each of those ports [00:22:30] to Long Beach. It depends on how full the containers are. It depends on available capacity and the schedules out of those ports. In general. If you run those numbers, you'll find out it's a good idea. That's a consolidation program we're consolidating for the long trip across the ocean. So in general, if you've got small quantities produced near one another and they're going to make a long trip, you're better [00:23:00] off pulling those together for that distance. We did a program at Disney where they have lots of suppliers, small suppliers up in the northeast part of the United States shipping to Orlando. So instead of having each one ship LTL, we had a full truckload consolidation point and got a much better deal in the end. That's the idea of pooling and consolidation along those lines is another good practice in routing and [00:23:30] scheduling and that's the idea of backhauling. Backhauling goes like this. The idea of the principle is in the work you haul something on your way back. Let's suppose there's a load going full from the warehouse to a retail store door and it comes back empty. That last leg back is called deadheading. What is the utilization on that trip of the driver, the vehicle and the container? It's 50%.

Dr. Frazelle (24:00):

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