integrated transportation - chainalytics...through fact-based transformation using the brightest...

For supply chain modeling

Integrated Transportation

TODAY’S OBJECTIVE

2 CHAINalytics

Learn how to design optimal supply chain networks by

leveraging Chainalytics’ integrated freight market intelligence

from within LLamasoft’s Data Guru data analytics application.

Joint customers can now quickly access, manipulate and

load transportation intelligence through Data Guru to

ready it for sophisticated supply chain modeling at the

click of a button.

© CHAINalytics 2015

Maximizing the value of your supply chain to the enterprise through fact-based transformation using the brightest minds and a combination of innovative and proven methods.

TODAY’S SPEAKERS

Bennett Wilkins Product Manager: Data Guru

Llamasoft

Matthew Harding Principal: Freight Market Intelligence

Chainalytics

CHAINalytics © CHAINalytics 2015

AGENDA

4

Freight Markets + Modeling Innovations

LLamasoft Introduction + Data Guru Overview

Chainalytics Introduction + FMIC Overview

Live Demo

Summary + Q&A

CHAINalytics




Live Demo

Summary + Q&A


WHO IS CHAINALYTICS?

5

11 YEARS

GREAT SUPPLY CHAIN PARTNER SupplyChainBrain

18 TOP 25

supply chains of Gartner’s

ATLANTA BANGALORE MILAN MINNEAPOLIS HELSINKI SINGAPORE STOCKHOLM SYDNEY 8 offices

GLOBAL

8 RETAIL TOP 10

7 FOOD & BEVERAGE TOP 10

6 CPG TOP 10

91 of the

FORTUNE 500

TOP SUPPLY CHAIN SCHOOL

67 %

WITH DEGREE FROM consultants

of

* 25 BILLION

$

FMIC

FREIGHT SPEND CAPTURED IN

25 %

CAGR since 2009

COOL VENDOR in supply chain services

Gartner 2013 10 PROS

Supply & Demand Chain Executive

TO KNOW

© CHAINalytics 2015 CHAINalytics

Strategic Alignment

Performance Improvement

Transformation

Descriptive & Diagnostic Analytics

Predictive & Prescriptive Analytics

Intelligence Networks

Decision Support

Technology

FACT-BASED TRANSFORMATION

6 © CHAINalytics 2015 CHAINalytics

FREIGHT MARKET INTELLIGENCE CONSORTIUM (FMIC)

7

OUR MISSION Elevate the impact of transportation with market-focused competencies

Accelerate Minimize

time-to-insight with ground-breaking tools

and technology

Network Maximize benefit

of consortium-based interactions and

knowledge

Transform Maximize utility of

information impacting material gains

Communicate Provide information

to inform organization and partners of

market dynamics

Launched TL Model

7 Members

USA Only

700MM in Annual Freight Data

OUR HISTORY A decade of growth

2004

Multiple models for Shippers and 3PLs

140+ Members

Global in Scope

Over $20B in Annual Freight Data

2014

MARKET-BASED INSIGHTS


FREIGHT MARKET INTELLIGENCE CONSORTIUM SERVICE FOOTPRINT

8

Consortium

Type Market Service Modes

Year

Launched

Model

Frequency

Current

Annual Spend

Member

Count

Shipper

North

America

Truckload

Annual

Dry, Temp, Flatbed,

Intermodal 2004 6 Months $18.1 B 102

Truckload

Quarterly Dry, Temp, Intermodal 2012 3 Months $6.2B 26

LTL Dry, Temp 2007 12 Months $734MM 26

Ocean Dry, Temp 2008 6 Months $617MM 15

Europe

CIS

Truckload

Annual Dry, Temp 2014 6 Months €1.3B 11

3PL North

America

Truckload Dry, Temp 2011 Monthly $3.8B 19

LTL Dry 2013 3 Months $290MM 3

Data Guru Enabled


FMIC DELIVERABLES DRIVING MARKET COMPETENCY

9

Chainalytics-hosted business intelligence which provides

immediate and intuitive insights on large data sets over time Premium Analytics

Alternative carrier options for capacity by state and mode Carrier Database

Rate and service trends among members, groups, industries

supported through Premium Analytics

Private Trends

Aggregation of key public trends in US economy,

transportation, fuel Public Trends

Long-term network level tracking, performance against

industry peers, similar sized shippers and prior services Multi-Period

Review

Market analysis covering lanes, carriers, trends, fuel designed

to your specific network

Performance Reports

Full service online portal: batch rating tools, training, research Web Portal


Integrated

Freight Market

Intelligence

Rating API for external applications, supports brokerage operations

and analytical services – Now integrated to LLamasoft Data Guru

AGENDA

10




Live Demo

Summary + Q&A

CHAINalytics




Live Demo

Summary + Q&A


TRANSPORTATION RATES ARE ALWAYS CHANGING

11

3-4% 0%

5-6%

2014:

Year of

Catching

Up,

and more…


Dry Van Index

Lo

ng

Ha

ul M

ark

et C

ha

ng

e (

Ja

n. 2

011

)

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Ja

n -

11

Ap

r -1

1

Ju

l -1

1

Oct

-11

Ja

n -

12

Ap

r -1

2

Ju

l -1

2

Oct

-12

Ja

n -

13

Ap

r -1

3

Ju

l -1

3

Oct

-13

Ja

n -

14

Ap

r -1

4

Ju

l -1

4

Oct

-14

FINDING GOOD TRANS DATA IS HARD TO DO

12

To prove this

concept…

we count the

number of

shippers

the results are

surprising if not

shocking to

many…


3DZ

3DZ

How many shippers overlap on all

120,000 3-digit to 3-digit lanes within

largest Chainalytics dataset?

FINDING GOOD TRANS DATA IS HARD TO DO

13

3DZ Lane Level Statistics - Latest Dry Van Release – Our Largest Model

Networks are

Highly

Fragmented

Exact Lane

Comparisons

Usually

Impossible to

Make

Transactional

Approaches

Do not work well

Because of

Significant

Approximations

Significant Gaps

and

Inaccuracy

94% of all 3DZ Lanes

(112K of 120K)

Have 3 or LESS Shippers

Representing $7.5B of $9.8B


ECONOMETRIC MODELING FILLS THE GAP

14

Regression modeling commonly known as “line fitting”

An effective tool to explain dependent variable

Cost = Linehaul + fuel

That are Derived from independent variables

Geography, service, equipment, volume, contract v. spot, asset v. broker, etc

Provides feedback in explanatory power

R^2, Confidence Intervals and other statistical measures

Method captures carrier pricing approach

Where does lane start and end?

What are the service and equipment

expectations?

Spot vs Contract?


HOW MODELS WORK

15

>10 shippers >3,000 loads/year $2.93 median rate

Our market rate estimates are built on qualified input data with the goal of

explaining cost differences that matter when buying transportation services

Origin Destination

Direct Multi-Stop

Regular Expedited

Asset Broker/3PL

Primary vs Backup

Temp Ctrl – H, P, C, F

Hazmat – Y or N

Inbound vs Outbound

Equipment Type

Contract vs Spot

Dry, Temp, IM, FB

Econometric

Models

Point to Point Lane: By Day & Load & Company


HOW MODELS WORK

16






Origin Destination

Direct Multi-Stop

Regular Expedited

Asset Broker/3PL

Primary vs Backup


Hazmat – Y or N

Inbound vs Outbound

Equipment Type

Contract vs Spot

Dry, Temp, IM, FB

Econometric

Models

2.60

HOW MODELS WORK

17






Origin Destination

Direct Multi-Stop

Regular Expedited

Asset Broker/3PL

Primary vs Backup


Hazmat – Y or N

Inbound vs Outbound

Equipment Type

Contract vs Spot

Dry, Temp, IM, FB

Econometric

Models

3.10

Transportation is a critical input to any supply chain

analysis and is now directly integrated to

LLamasoft’s Data Guru Product

FMIC + LLAMASOFT = TRANSPORTATION DATA PROBLEMS SOLVED

18

Chainalytics

FMIC provides

timely insight

to market

changes and

broad market

coverage


Transportation can be in excess of 50% of supply chain cost

AGENDA

19




Live Demo

Summary + Q&A

CHAINalytics




Live Demo

Summary + Q&A


© 2015 LLamasoft, Inc. All Rights Reserved

About LLamasoft


Technology Complete Supply Chain Design Platform

Supply Chain Design

Platform

• Power Modeling & Analytics • Integrated Optimization Solvers • What-if Scenario Management

• Enterprise Data Integration • Data Transformation & Cleansing • Automated Model Building

• Knowledge Management • Processing Power On-Demand • Mobility & Collaboration

• Reference & Benchmark Data • Facility and Transportation Rates • Risk & Sustainability Metrics


Reach beyond your desktop with

A visual data blending tool designed for

business users to easily create transparent workflows with enterprise data

Data Guru


Technology Enabling a Sustainable Business Process

© 2015 LLamasoft, Inc. All Rights Reserved 24

Data is in multiple locations and formats

Identifying and resolving data quality issues

Data size and required functionality exceed

the capabilities of business applications

Integrating business knowledge and data expertise

Creating and updating process documentation

Managing fragile ‘Black Box’ automation techniques

SPOT POLL: What Are Your Data

Challenges?


The Data Guru Answer

Stop Wasting Time

Take advantage of self documenting processes and one-click automation

Unlock Your Data

Connect your business processes to enterprise data sources

Collaborate

Leverage all business knowledge and data expertise to

create self sufficient analytical processes to share with

any analyst

Data Insight

Quickly identify & resolve data quality issues, get

insight in days not weeks!


Data Guru Process

AGENDA

27




Live Demo

Summary + Q&A

CHAINalytics




Live Demo

Summary + Q&A



Data Import & Preparation

iFMI Rate Extraction

Rank Lanes • Distance • Cost

Summary

CZ

DC-1

Current

DC-2

New Inputs • Distance

• Cost

Review customer DC

assignments and identify

cost & service improvement opportunities

Data Guru Demo

AGENDA

29




Live Demo

Summary + Q&A

CHAINalytics




Live Demo

Summary + Q&A


SUMMARY

30

Chainalytics FMIC market results are very robust and

adjust with highly dynamic transportation markets

Our customers manage world-class transportation

networks

Transportation is typically the #1 driver of supply

chain costs

Transaction level data can be of low value

leads to gross assumptions and full of gaps

Mutual customers of LLamasoft and

Chainalytics will have seamless

access to this critical cost

component

January 2011

Now

September 2014 © CHAINalytics 2015 CHAINalytics

THANK YOU FOR ATTENDING FOR MORE INFORMATION, PLEASE CONTACT

powered by

LLamasoft Sales

866-598-9831

[email protected]

Matthew Harding Principal, Chainalytics

Office: 603-347-1250

[email protected]

Bennett Wilkins Product Manager, LLamasoft

Office: 734-649-2147

[email protected]

Zach Schuchart FMIC Account Manager, Chainalytics

Office: 678- 384-3614

[email protected]

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integrated transportation - chainalytics...through fact-based transformation using the brightest...

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