RightChain Routing Transcript

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[00:24:00] Is there anything else that driver, vehicle and container could have done? Yes. Suppose there's a vendor that's going to ship something to the warehouse anyway on the way back, we might as well send the truck there and get, I'm just making the numbers easy here. 67% utilization of those assets instead of 50%. Is Backhauling always a good idea? [00:24:30] No. When would it be a bad idea? That leg right there is not free. This leg over here is not free, so you have to compare the incremental cost of this trip back with what the savings would be associated with 17% better utilization and that's a cost benefit analysis [00:25:00] that you have to do. The other thing that could happen is this takes time to make this stop and that trip you're going to have to go off the main route. If you need the asset back, it's not a good idea. Dr. Frazelle (25:13): So you have to understand the opportunity cost of a driver day, vehicle day and a container day [00:25:30] to know whether or not that's a good deal or not. Any of you have backhaul programs? Alright, at Johnsonville, what do you use for back haul? Anything you can get? Correct? Anybody else have a back haul program? David, great example. So at Honda you're going out full to the dealership and coming back with returns and cores, et cetera. Excellent example. [00:26:00] Anybody else? Yes. So Norfolk Southern, you're going out full with paper products and coming back with scrap paper basically Anybody else at Wawa? Frozen, grilled onions for cheese steaks only in Philadelphia. Louise Coca-Cola. So you go out full and then you [00:26:30] come back with containers. Cool. Anybody else? Yeah, Oris better not get that one on the tape Dr. Frazelle (26:46): Or as I do not know how the Iraqi army works. You know how the Iraqi army works? I don't know how they work. It's like a bus system for the troops. [00:27:00] That's really cool. 67% for whatever reason seems to be a rule of thumb out there for good utilization of these types of assets. I don't know why it worked out that way, but if you're there or better, you're usually doing pretty good. How do you find a backhaul? Opportunity Brokers. There's some websites that help. A lady in Atlanta runs a business. Her name's Ann Elliot and she helped people find backhauls. [00:27:30] I guess you could say she's a broker. I said, Anne, how do you do? She says, I just drive around the city and I see trucks that are empty and I think I wonder if there's something else they could be doing. Where are they coming from? And she just follows empty trucks around and keeps logs of backhaul opportunities and then calls people a couple of other routing and scheduling tricks of the trade and then we're going to put you to work. One is a practice called So far [00:28:00] what we have been talking about your fixed route, we set these things up at the beginning of the day and you pretty much know that's what you're going to be doing under continuous moves. You start with that, but then you get out here to a certain location and when you're done, you log into the system or you call somebody and you basically ask the system, what's the next best thing for me to do given [00:28:30] what I just did, how many hours I've been on the road and what else is happening in the network? And it runs those calculations along these same lines and it says, okay, what you need to do now is to go to Waco, Texas. You finished continuous moves. Dr. Frazelle (27:59):

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