the carrierpoint option? october 19, 2004 scm conference call
TRANSCRIPT
The CarrierPoint Option?
October 19, 2004
SCM Conference Call
Contact
• Meeting at CLM– John C. Huggins
• Norcross, Georgia (770)263-2509
– John Tomson• VP, Enterprise Solutions Group
• John started CarrierPoint
– CarrierPoint is now part of TransCore
This Presentation
• Compiled from handouts provided by CarrierPoint
IF
FGLC shippers provide shipment history for year
by
November 15, 2004
~ 100,000 shipments
• Carrier Point will run data on their system and show FGLC– Basic traffic lanes with directional volumes– Potential for backhauls– How much collaboration would reduce empty miles
if mileage is included– Logical cluster areas for origin and destinations– Logical back haul pairings– Dock scheduling information– How much industry could save– How much capacity could be increased
What will it cost FGLC?
• No up front costs
• Carrierpoint will make presentation at January meeting
What would it cost to implement?
• $15,000 - $25,000 setup cost per computer interface– Much of cost is to learn shippers system and convert
output to XML– Does each company have separate order processing
system at each plant?
• $1 - $2 /truckload depending upon annual volume
Shipper data to be furnished
Each row represents a shipment
ORG3ZIP DEST3ZIP ORIG CITYORIG
STATE
DEST CITYDEST
STATE
SHIPDATEDELIVER
DATEPICKUP
TIMEDELIVER
TIME
38010 21045 MEMPHIS TN ATLANTA GA 4/19/2001 4/19/2001 14:30 14:30
38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 16:00 16:00
38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 18:00 18:00
38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 14:30 14:30
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 16:00 16:00
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 18:00 18:00
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 14:30 14:30
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 16:00 16:00
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 18:00 18:00
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 14:30 14:30
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 16:00 16:00
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 18:00 18:00
38010 21045 MEMPHIS NT TAMPA FL 4/23/2001 4/23/2001 16:00 16:00
Shipper data to be furnished (2)
SCAC AMOUNT MILEAGE EQUIP # Stops Stop off Charge Comments / Instructions
PSQA 224.66 63 Flatbed1 50
PSQA 215.82 57 Flatbed1 50
SUBF 224.88 72 Flatbed1 50
SUBF 222.72 72 Flatbed1 50
PSQA 216.36 63 Flatbed1 50
PSQA 221.72 63 Flatbed1 50
PSQA 217.43 63 Flatbed1 50
PSQA 217.41 63 Flatbed1 50
PSQA 221.83 63 Flatbed1 50
PSQA 218.18 63 Flatbed1 50
PSQA 224.93 57 Flatbed1 50
PSQA 220.84 57 Flatbed1 50
PSQA 224.93 57 Flatbed1 50
Facility
Customer
Backhaul
One segment of a multi-segment
Automated Backhaul MatchingAutomated Backhaul MatchingAutomated Backhaul MatchingAutomated Backhaul Matching
Region
CarrierPoint uses calculated freight savings to suggest the optimal pairs of segments to combine into round trip moves for your fleet or for your core carriers.
Network suggested backhaul load pairings
Other combinations of segments that do not present the optimal cost savings (based on the reference rate) presented on the earlier screen for DSM 8768 but might make a better operational choice
Appointment BookAppointment Book Appointment BookAppointment Book
The Appointment book is location specific
It is driven by a configured template
Appointments are entered by the carrier/vendor or by the customer
Floating appointments Double booking capabilityStanding appointments
One Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock Scheduling
Aug(Pre—CP) Sept(-CP) Improvement
Outside loads per day 53 56 Average Detention for on-time loads 2.7 hours .33 hours 87% reduction
Average On-Site time for on-time loads 2.7 hours 1.7 hours 37% reduction
Percentage of on-time loads held < 1 hr 10% 57% Percentage of on-time loads held 1-2 hrs 26% 28% Percentage of on-time loads held 2-3 hrs 24% 13% Percentage of on-time loads held 3-4 hrs 23% <1% Percentage of on-time loads held 4+ hrs 17% <1%
Percentage of loads subject to demurrage >2 64% 15% 77% Reduction
Detention Time DistributionBefore CarrierPoint
<1 Hr.10%
1-2 Hrs26%
2-3 Hrs24%
3-4 Hrs.23%
4+ hrs.17%
Detention Time DistributionAfter CarrierPoint
<1 Hr.57%
1-2 Hrs28%
2-3 Hrs13%
3-4 Hrs.1%
4+ hrs.1%
One month after implementation results in a 77% reduction in carrier billable demurrage time. Other customers increase facility production where bottlenecks existed at the docks previously
How does the system work?
• Identify Shipment points• Enter rates by shipment point pairs
– Electronic solicitation of rates option available
• Designate carrier priority• Define priority rules• Assign shipments to carriers as orders are received
– Pair backhauls recommendations and candidates• (All shipments for company are on one screen)
– Show options for consolidating LTL to TL loads– Allocate freight by priority rules and rates– Publish spot market loads for carriers to bid on
Region setup via zip ranges
Rate base setup for combined moves – can be uploaded from Excel
Rate base setup for combined moves
eRFQ CalendareRFQ CalendareRFQ CalendareRFQ Calendar
Set RFQ timeline and tracking parameters
Upload lanes to be included in the process or add lanes individually through the user interface if you already have a rate database
Choose and notify carriers to receive the rfq
Monitor responses from carriers and carriers that have not yet responded
Choose carriers you want involved in your business and include them in a modeling tool so that you can determine the best mix of carriers on any given lane
Award the business and notify the carriers then export your results to the rating engine so that you can execute your plan
Settings for selecting loads to consider for combination
Tender StrategiesTender StrategiesTender StrategiesTender Strategies
Private Trading Network
Wider Spot Market
4 Levels of visibility insure maximum visibility & carrier capacity
You control who sees your loads and equipment….and when
Fleet assets act as a 1st Level
Fleet
Contract Carriers
Lane AnalysisLane AnalysisLane AnalysisLane Analysis
View detail of carrier response with provided links for additional detail then model, award and upload directly to the rate base
Model cost combinations of carriers on specific then award and upload directly to the rate base
View shipments for a single location or for the entire company
The Shipper’s Dashboard provides a ready reference of all loads and their real time status
Quick Views allow for easy sorting of the information
View Shipment DashboardView Shipment DashboardView Shipment DashboardView Shipment Dashboard
View Shipment DetailView Shipment DetailView Shipment DetailView Shipment Detail
Detailed single or multi stop shipment information is readily available to, Transportation, Customer Service, Core Carriers, and any other division or business partner that you want to have access.
Bills of Lading as well as other documentation can be printed directly from this screen
Tracking and Tracking and CommunicationCommunication
Tracking and Tracking and CommunicationCommunication
Advance Shipping Notices can delivered to the customer and other business partners
Status updates can be provided at the load or stop level
Carriers that are EDI capable deliver 214 transaction sets through to proof of delivery and smaller carriers without EDI can update statuses and delivery through an efficient user interface so that there are no gap in tracking
Status requests automated in the interface, or shipper initiated
Proof of delivery from carriers with delivery detail also advance the status on the shipper dashboard to “Delivered”
Use Proof of Delivery as a payment trigger for automated freight pay
All new loads interfaced into carrier are reviewed against existing loads in the load pool so that the backhaul matching is continuous and does not have to be performed in batch runs as with older optimization tools.
Other combinations of segments that do not present the optimal cost savings presented on the above screen but might make a better operational choice are available through the view alternatives link
Backhaul Pairing & Alternate PairingsBackhaul Pairing & Alternate PairingsBackhaul Pairing & Alternate PairingsBackhaul Pairing & Alternate Pairings
• With – Receiver Data– Carrier data including rates by lane– Shipment Data
• Automatically consolidates LTL to TL loads
• Combine loads within company to utilize backhauls
• System automatically sees other firms shipments and create collaborative backhauls
– If carriers have GPS or other tracking system you can track shipments and send advance shipment notification with expected arrival time and exact configuration of load
• By capture gate time, dock time, release time and departure time you can – Determine dock utilization– Determine wait time, unload time, tarp time, and email
summaries to each customer every month– Determine distribution of unload time and reality of 6 am-
10am delivery time requests– By capturing glass breakage by load analysis can be made of
breakage by load type, equipment type, customer, highway, etc.
– Proof of deliver• Implement automatic billing for glass• Automatic freight payment
– Allows easy audit of each freight bill– Allows capture of freight cost by category by customer for
involving marketing (in cases where glass is priced delivered)
Appointment BookAppointment Book Appointment BookAppointment Book
The Appointment book is location specific
It is driven by a configured template
Appointments are entered by the carrier/vendor or by the customer
Floating appointments Double booking capabilityStanding appointments
• Carrier can select dock time or be assigned dock times– Reports issued to show conformance to schedule
for both parties– Yard management system for trailers
• Fuel surcharges can be assigned automatically
One Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock Scheduling
Aug(Pre—CP) Sept(-CP) Improvement
Outside loads per day 53 56 Average Detention for on-time loads 2.7 hours .33 hours 87% reduction
Average On-Site time for on-time loads 2.7 hours 1.7 hours 37% reduction
Percentage of on-time loads held < 1 hr 10% 57% Percentage of on-time loads held 1-2 hrs 26% 28% Percentage of on-time loads held 2-3 hrs 24% 13% Percentage of on-time loads held 3-4 hrs 23% <1% Percentage of on-time loads held 4+ hrs 17% <1%
Percentage of loads subject to demurrage >2 64% 15% 77% Reduction
Detention Time DistributionBefore CarrierPoint
<1 Hr.10%
1-2 Hrs26%
2-3 Hrs24%
3-4 Hrs.23%
4+ hrs.17%
Detention Time DistributionAfter CarrierPoint
<1 Hr.57%
1-2 Hrs28%
2-3 Hrs13%
3-4 Hrs.1%
4+ hrs.1%
One month after implementation results in a 77% reduction in carrier billable demurrage time. Other customers increase facility production where bottlenecks existed at the docks previously
Audit allows each line-item on the accessorial to be reviewed and approved.
Carriers can use this screen to claim charges, but only for accessorials that are configured by the shipper to be claimable by the carrier.
The Audit pages only contain accessorials that are available on the schedule used on the load.
Shipper can “Approve” a load from this screen, triggering the send of detailed freight bill info via OMSI.
AudiAudi
ttAudiAudi
tt
Screens can be filtered to show only loads assigned to a specific weight range, origin, and delivery region to aid in the combination of partials. Loads that have matching origins and destination and partial weights are presented to the user on this screen for consolidation by clicking on the matched loads. The combined loads are then released to the carrier base to go thought the cascading tender process
LTL to TL ConsolidationLTL to TL ConsolidationLTL to TL ConsolidationLTL to TL Consolidation
Accessorials, Fuel Surcharges & Accessorials, Fuel Surcharges &
AuditAuditAccessorials, Fuel Surcharges & Accessorials, Fuel Surcharges &
AuditAuditShipper/3PL can assign fuel surcharge schedules to carriers (user-defined or based on DOE Regional Fuel Indices)
Fuel Surcharges automatically calculated based on line-haul and applied to shipment
Shipper/3PL can assign Accessorial schedules to carriers and specify services on load when posted or after-the-fact
Shipper can permit/deny carrier to claim charges on-line
Review and approval done on-line
New OMSI messages created for line-level detail of freight bill including configurable GL codes
Shipper can choose to auto-approve freight bill at time of carrier acceptance, delivery confirmation, or only after submitted for approval by carrier
Can auto-approve based on absolute or percent-of-bill variances
Capacity Driven Dock SchedulingCapacity Driven Dock Scheduling Capacity Driven Dock SchedulingCapacity Driven Dock Scheduling DockMaster – Interactive Scheduling
Provides “self-service” scheduling by carriers
Location specific dock appointment books are created
Accommodates any number of doors
Any number of access level can be granted
Doors/areas are named and grouped by type
Filters drive the correct cargo to the correct doors
The customer assigns carrier’s levels of access
Full self-scheduling, cancellation capabilities, rescheduling capabilities
Request an appointment only
Outside of the core carrier group, but granted direct route scheduling
Appointment data is provided for performance reporting
Dock in and out reporting generate lift driver productivity, load and discharge time actuals and averages,
interfaces new inventory to WMS software on inbound moves, etc.
Gate in delivers the on time arrival of carriers, and generates an exception notification if late
Gate out provides the first indication of on time delivery probability
DataDepot ReportsDataDepot ReportsDataDepot ReportsDataDepot Reports
A selection of performance and benchmarking reports are available (Right)
Reports can also be scheduled for automatic generation and delivery via e-mail for active performance monitoring (Below)
What about CarrierPoint?
• Who are they?
• How big are they?
• What Industries do they serve?
TransCore OverviewTransCore OverviewTransCore OverviewTransCore Overview• 1700 employees focused on transportation
management software and services for 18,000 truckload carrier, intermediary, and shipper customers– Portland, Ore. headquarters with 25-year history making
commercial ground transportation more efficient and profitable
– Broad and flexible product range:• Freight Matching (DAT Partners, etc.) 3,500,000
monthly loads matched• RFID• GPS Tracking• 3PL Management Systems• Regulatory Services• CarrierPoint• Transcore Media Group• Truckstop Services
– CarrierPoint joined TransCore March of 2003
– $380 million in annual revenues
CarrierPoint Customers Are:CarrierPoint Customers Are:CarrierPoint Customers Are:CarrierPoint Customers Are: Purchasing technology to improve core competencies including transportation
Enhancing corporate visibility of their supply chainProviding appropriate information views to the entire corporation
Easily interfacing data from separate systems to one common platform
Differentiating their products through enhanced customer care Tracking to delivery
Providing shipped notification
Streamlining the distribution process
Automating the process so employees can manage the exceptions
Reducing transportation cost Negotiating better freight rates without damaging carrier partners
Using current contracts to their fullest
Choosing the correct carrier for a specific lane or customer
Compressing dock schedules
Transporting additional product
Eliminating demurrage charges and long standing units
Creating more efficient continuous moves for fleet and 3rd party carriers
Applying metrics to their vendors/customers/departments to:Measure compliance
Benchmark
Improve management decisions
ASP OverviewASP OverviewASP OverviewASP Overview
CarrierPoint provides: Hardware (redundant application servers, redundant database
servers, SSL accelerators, tape backup, etc.)
Software (CarrierPoint application and supported 3rd party SW – Web server, database, backup, system monitoring)
Hosting infrastructure (secure facility, redundant links and power, etc.)
24 x 7 system monitoring (heartbeat monitoring, notification, escalation procedures, etc.)
System maintenance (database administration, backup, system upgrades, etc.)
Customer support (for users and business partners at no additional charge)
Upgrades and new features (on a quarterly basis through the existing interface)
System Interface and OMSISystem Interface and OMSISystem Interface and OMSISystem Interface and OMSI
OMSI is a simple, secure integration tool Allows 2-way communication with CarrierPoint
Send loads, changes, cancellations Send messages to carriers/vendors Receive Dispatch/Scheduling results Receive carrier self-scheduling results Receive status updates from carriers.
Through “staging” database: Customer fills CarrierPoint-supplied database tables Customer reads results from tables filled by CarrierPoint CarrierPoint supplies all connection software
Simple No 3rd party software required (such as WebMethods or Crossworlds)
Does not require that the customer know XML, Java, or other internet technologies
No Webserver required
Less than 6 weeks to interface
Secure Uses a secure communications protocol (SSL)
Is “passive” - website never initiates a transfer into the customers’ network (to minimize security/firewall concerns)
Behaves like a browser – HTTP Request/Respond flow
If you decide on this approach?
• 3 to 6 week implementation time
• $1 to $2 per load cost
• Each shipper would contract with them independently
• No firm would ever see competitor’s shipments
• Carriers can see loads tendered to them and loads available on spot market
Supply Chain Contribution
Need occursWhether by
Use, production schedule, sale
Need is recognized
Replenishment InitiatedWait Wait
PO CreatedIf delivery
date required it will be filled
in whether accurate or
not
Wait
P.O. ApprovedWait Wait Order Created Wait Order Sent Wait
Order Received Wait Order Entered
Schedule Production
Schedule Construction
Sales
Normal Usage
Activity
Go to A
Processor Customer
Loading Unloading Process
Manufacturer
Select Carrier
Process Order
Shipping
Stage order
Place order with carrier with defined pick up time
Wait
Dispatcher Dispatch truck with assigned
pickup time
Receive Dispatch
Drive to pick up point
Announce Arrival
Position truck for Loading
Clear Truck for Loading
Load Truck
Tarp Load
Announce Arrival
Clear Truck for Loading
Position truck for
Unloading
Unload Truck
Untarp the load and
secure the tarp
Wait
Position truck for next trip
Wait
Report
Clear
ReportCleared
Wait
Wait
Drive to customer site
A Order Received
Enter OrderWait Wait
Wait
Pick Order
Wait
Wait
Wait Wait
Secure Tarp and Ready
truck
What would such a system do?
• Eliminate and report on most wasted time steps in arrival, loading, unloading steps
• Addresses potential to reduce empty miles and unproductive hours• Addresses the 6 am - 10 am arrival time issue• Monthly reporting on receiver unloading performance• Provides data collection for analyzing glass breakage by type glass,
by carrier, by customer, by route, or mixed loads• Provides data for analyzing load and unload time by mixed load• Allows integration of specialized and non specialized transportation
What it would not do
• Not address wasted time in ordering process.– SCM committee will make separate efforts to address potential of
• Vendor Managed Inventory methods – Widely used• POS methods – Wal*Mart• JIT II methods - Bose• CPFR methods – Retailers with extensive promotions• ECR methods – Grocery Industry• 13 week rolling forecast method - Dell