TRANSPORTATION ACTIVITY PROFILING

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Transportation Activity Profiling

“The beginning of wisdom is this: Get wisdom, and whatever you get, get insight . Prize her highly, and she will exalt you; she will honor you if you embrace her. She will place on your head a graceful garland; she will bestow on you a beautiful crown.” PROVERBS 4:7-9

Dr. Ed Frazelle President and CEO RightChain™ Incorporated

SECTION I The P’s and P’s of Profiling

Course Contents

SECTION II Profiling Constructs

SECTION III Example Profiles and Interpretations

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SECTION I The P&P’s of Profiling

1. The Power of Profiling 2. The Payoff of Profiling 3. The Purpose of Profiling 4. The Principle & Principal of Profiling

5. The Practice of Profiling 6. The Pictures of Profiling 7. The Peril of Profiling

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Cost of Design Changes

1 The Power of Profiling

Power of Profiling Window

Opportunity for Improvement

Greenfield – Planning – Design - Implementation

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• quickly reveals opportunities! • quickly eliminates unattractive alternatives! • provides a basis for evaluating alternatives! • gets key people involved! • motivates and allows objective decision making!

2 Profiling PAYS

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3 The PURPOSE of Profiling

The average is 2, but there aren’t any 2’s!

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4 The PRINCIPAL and PRINCIPLES of Profiling

Applied to making a bed… • 20% of the effort yields 80% of the smooth. Applied to management… • 20% of the people yield 80% of the headaches. Applied to sales… • 20% of the sales people yield 80% of the sales. Applied to SKUs… • 20% of the items yield 80% of the sales. Applied to transportation…

Vilfredo Pareto, 1848-1923

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Wallowing in the data

5 The PRACTICE of Profiling

stimulates

creative thinking

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6 The PICTURES of Profiling

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7 The PERILS of Profiling

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Reverse Engineering Activity Profiling

• What decision am I trying to make? • What questions need to be answered to make that decision? • What information is required to answer those questions? • What data is required to produce that information?

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Dimensions

SECTION II Transportation Activity Profile Constructs

Elimination Minimization Consolidation Simplification Optimization Integration Synchronization

Units of Measure

Objects

Time Periods

Partitions

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Trip/Route

Key Transportation Activity Profile Dimensions

Delivery/Load

Shipment

Order

Order Line

Unit/ Each/ QTY

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Origin (ShipFrom)

Hemisphere, Continent, Region, Country, State, County, City, Postal Code, Neighborhood Hemisphere, Continent, Region, Country, State, County, City, Postal Code, Neighborhood Point to Point, Hemisphere to Hemisphere, Continent to Continent, Country to Country, Port to Port, Region to Region, State to State, City to City, Postal Code to Postal Code)

Destination (ShipTo)

Key Transportation Activity Profile Objects

Lane (origin <> destintation)

Route Trip Vehicle Vehicle Type Container Driver Customer (SoldTo)

Supplier (BoughtFrom) Source (SourcedFrom) Carrier Shipment

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Key Transportation Activity Profile Partitions/Filters

Business Unit Channel Commodity Mode of Transport (e.g., truck, rail) Vehicle Type Temperature Service Level (e.g., same day, next day) Shipping Term (e.g., EXW, DDP) Time Period Geography

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Key Transportation Activity Profile Time Periods

Year Quarter of Year Month of Year Month of Quarter Week of Year Week of Quarter Week of Month Day of Week Hour of Day Minute of Hour Shift

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Weight (e.g., kg, lb) Cube (e.g., CBM, ft3) Quantity (e.g., units, cases) Distance (e.g., km, mi) Weight-Distance (e.g., kg-km, lb-mi) Density (e.g., kg/cbm, lb/ft3) Containers (e.g., FTLs, LTLs) Orders Order Lines Shipments (i.e., manifests, BOLs) Deliveries Trips Loads Routes Freight Paid Invoice Value Retail Value

Key Transportation Activity Profile Units of Measure

On-Time Percent Damage Percent

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MONETARY VALUE

$10 200 pounds 100 cubic feet

$100 20 pounds 10 cubic feet $100/20 =$5/lb $100/10 = $10/cf

$10/200 =$.05/lb $10/100 = $.1/cf

RightChain’s Transportation Triangle

Diamonds

Coal

Kleenex

WEIGHT

CUBE

Container

40 cf, 40,000 lbs: 1,000 lbs/cf

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Customer (SoldTo) Profiles ShipTo Profiles

ShipFrom Profiles Order Line Profiles Order Profiles Manifest Profiles

SECTION III Example

Lane Profiles Route Profiles Trip Profiles Stop Profiles Vehicle Profiles Driver Profiles Modal Profiles Carrier Profiles

Transportation Activity Profiles

Service Level Profiles Geographic Profiles Freight Profiles

Inbound Activity Profiles Outbound Activity Profiles Predictive Profiles

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CUSTOMER PROFILE | Map by Weight

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CUSTOMER PROFILE | Map by Weight with Centroids

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CUSTOMER PROFILE | Map by Weight with Centroids & Radius

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SHIP TO PROFILE | Lines and Weight

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SHIP TO PROFILE | A DAY IN THE LIFE… of a Customer

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ShipTo PROFILE | Quantity Pareto

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SHIP TO PROFILE | Weight Pareto

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SHIP FROM PROFILE | Lines and Truckloads

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ORDER LINE PROFILE | Quantity and Cube

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ORDER PROFILE | Lines and Quantity

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BOL/Manifest Profile | Weight and Cube

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LANE PROFILE | Region to Region Lanes | Lines and Weight

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LANE PROFILE | Origin to ShipTo | Lines and Weight

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LANE PROFILE | Lines and Weight

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ROUTE PROFILE | Cube and Stops by Day of Week

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ROUTE PROFILE | Stops & Distance by Hour of Day

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ROUTE PROFILE | A DAY IN THE LIFE… of routes from a DC

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TRIP PROFILE | Departures by Hour of Day

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VEHICLE PROFILE | A DAY IN THE LIFE… of a Vehicle

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DRIVER PROFILE | A DAY IN THE LIFE… of a Driver

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MODE ACTIVITY PROFILING

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MODE ACTIVITY PROFILING

LTL Shipping Analysis

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CARRIER PROFILE | Lines and Cases

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SERVICE LEVEL PROFILE | Lines and Weight

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COMMODITY ACTIVITY PROFILING

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Revenue $000s 17,680 $ 8,295 $ 1,375 $

Freight $000s

Weight 000lbs.

Freight /Revenue

Cases Shipments

Japan Taiwan

$ $ $ $ $ $ $ $ $ $ $ $ $

413 104

284 232

12,390 9,210 1,670 1,335

15 17

2.33% 1.25% 1.17% 4.12% 2.81% 56.25% 2.03% 3.61% 3.65% 2.67% 2.74%

Hong Kong

16 36 11

42 30 11

9 9 6 1

Australia

$ $ $

883 395

GEOGRAPHIC ACTIVITY PROFILING

New Zealand

511

Malaysia

Asia-Pacific 28,630 $

581 $

599

25,118

Canada Mexico

1,234 $

49 10 59 13 13

2,756

8 3

226

344

U.S.

16,705 $

446

NAFTA 18,164 $

499 $

3,100

Netherlands

$ $ $ $

1 1 2 2

4 4 2 2

366 366 105 105

2 387.50% 2 387.50% 1 108.33% 1 108.33%

Europe

Guatemala

3 3

Latin America

2.32%

OVERALL

46,796 $

1,085 $

673

28,690

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GEOGRAPHIC ACTIVITY PROFILING

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PREDICTIVE PROFILING

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• Develop as many as ten criteria for determining the headache factor of a lane. Put weights on the ten such that they add to 100. • What three pieces of information about your transportation operations would you like to have that you don’t currently have? • What are the obstacles to obtaining the information? • Name and rank seven transportation activity profiles and/or pieces of information based on value. Assign a value (1 = lowest value, 10=highest value) to each profile or piece of information. Assign a cost to obtain (1 = lowest cost, 10 = highest cost) to each profile or piece of information. Calculate the return on information (ROI = value of information/cost to obtain information) for each profile or piece of information.

EXERCISES

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