RightChain Routing Transcript

8

that. Now what should I do? I only got two hours left in the day. Maybe I can't do anything or I don't know what's near Waco, Texas. It may find the closest thing to you within two hours or the furthest [00:29:00] thing from you. That is exactly two hours. Those are the types of algorithms that you put in there so you find the next best, the next best. And usually this will work, I would say between 10 and 20% better than just fixed routing. What's the problem with this? Dr. Frazelle (29:21): I don't know many people who want to deliver something in Waco and just say, okay, let's call the big [00:29:30] router in the sky and say, what's the next thing for me to do? Now you need to go to Secaucus, New Jersey. It's a lifestyle issue really, but honestly, there's some people who really that I wouldn't be one of them, but there are people who like that. Oh, I love the Oto SEC caucus. Let's see where the system tells me to go now, their husband and wife teams who travel all over the country doing this and it works great for them. Anytime you got a situation where congestion [00:30:00] is a big potential problem, you might want to simulate that activity at least once just to make sure the bottlenecks in the system based on the variability of what your activity is, are not going to put the system into gridlock. And so you can see where those bottlenecks are. That's the value of simulation. This is routing and continuous moves on steroids. Dr. Frazelle (30:28): This is called collaborative logistics [00:30:30] and it goes like this. Suppose there's this company called Georgia Pacific and they have a route that runs from Bangor to Buffalo and they have a route that runs Chicago to Green Bay to Chicago and out to Cedar Rapids. I don't want to drive that. That's cold. What is the utilization of the assets in that set of routes? We know it's 50% there. Here, it's 50% out there. You're just leaving the truck out there [00:31:00] and here it's a hundred percent. Now, unbeknownst to them, general Mills is running a route from Mechanicsburg, Pennsylvania up to Wells, Maine, then they're left. They run from Buffalo to Chicago and they're left and they run from Cedar Rapids to Mechanicsburg. What's the utilization there? Dr. Frazelle (31:26): It's not too good. Is it 50%? [00:31:30] If those two folks knew about one another, could they come together and make a better system? Absolutely. And it would look like this. So now we're from Chicago to Green Bay, back out to Cedar Rapids. We're full going this way. We're full going this way, we're empty. Right there we're okay. There we're okay there. What's the utilization of the assets [00:32:00] in that system? 90%, something like that. If you run the numbers on that for them, that was worth almost a million dollars. Is that a good idea? That's a good idea. How do you find out about those opportunities? You go network with the industry. You basically get out there and get involved in the industry to find out what these opportunities are and you think about it, who would be in that location that would need a load coming back the other way? You just sit down and if [00:32:30] you take a little while to brainstorm it, you'll identify the people pretty quickly if you just sit down and take the time.

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