From Purses to Trailers — the Complex Challenge of Loading

February 2nd, 2010 Sean Devine No comments

Today, the True LTL blog presents its first guest blogger. Olga Raskina (see bio below) works in Operations Research at Con-way Freight, so creating models that represent various elements of our freight network is nothing new to her. Here, she compares the fine art of packing a woman’s purse to that of loading freight on a truck. Enjoy! — Sean Devine

Have you ever looked inside a woman’s purse? It’s amazing the variety of things even the tiniest of them contains. Every time I pack a different purse to go somewhere, I face the same vexing problem — how do I efficiently put everything into it so that my pile of necessary items fits, nothing breaks and the smallest items are easy to get to when I need them? My goal is to avoid that horrifying moment when I have to shake everything out on the floor trying to find my car keys.

As I was packing my purse to go to a show last night, I couldn’t help but think that this is the problem we solve every day when we load our trucks for deliveries. The problem is hard to solve quickly and optimally in both worlds. A simple approach would be to put heavy or less-used things at the bottom, put what I need often — like a cell phone — where it’s easy to reach, and always put car keys where I can see them. This is very similar to how an LTL carrier would load freight on a truck.

At first glance, it seems like this approach should work well. Which it does — except when the purse is too small to hold everything or too large to allow you to find anything quickly. Determining the best trade-off between space and ease-of-use makes the problem very complicated.

The purse-size analogy is an easy way to relate to freight operations. For example, do I load two pups or a van? If all of the freight can be loaded directly on a single-lane van, that’s the best option. If the freight will require extensive re-handling or is out for final delivery, it’s more efficient to load pups and maybe even send them on two different routes. While this small example might seem obvious, making these decisions for the entire nationwide network simultaneously can quickly become complex.

Back to the purse model — assuming I do need that box of Band-Aids at the show tonight along with everything else I usually pack in my purse, how do I decide how large my purse should be? How do I know if everything will fit? With my purse, I can take everything out and repack, which is annoying but possible. With freight on a truck, it’s not that easy.

Here are charts of my potential time to pack and find an item, and the chances of everything fitting into a sample small, medium and large purse.


You can see that as the size of the purse decreases, the difficulty to pack it grows accordingly — but so does the probability that something won’t fit. Then, once packed, the time it takes to find things actually decreases. Concurrently, the time to find something rises if the purse is packed too tightly. Which suggests two natural conclusions — it’s best to be conscious about what you really need and also determine the adequate purse size (not too small, but not too large, either) to carry it.

These, in fact, are some of the keys to efficient LTL operations as, well.

Olga Raskina is an Operations Research principal at Con-way Freight. She has been with the company since August 2009, working on analytical models to support its strategic directions. Prior to Con-way Freight she worked at the software company Emptoris, where she held the lead scientist position, leading research efforts for all the company’s products.

Olga received her Ph.D. in Operations Research from Columbia University.

From Days to Hours

January 29th, 2010 Sean Devine No comments

In an interview for an article that appeared in the Jan. 25 issue of the Journal of Commerce , Greg Lehmkuhl, EVP of Operations at Con-way Freight, provided great insight into our definition of “fast.”

“For the first time, we’re actually measuring our transit time in hours instead of days … We’ve made a concerted effort over the past year to accommodate our customers’ late shipping needs and to deliver earlier in the day.”

We’re excited that we’re still finding ways to reduce costs while improving the service that we provide. This article, “Carriers Tighten Transit Times,” provides more details about the thinking behind our most recent network optimizations and can be found at www.joc.com/trucking/carriers-tighten-transit-times.

Solving the Vehicle Routing Problem

January 21st, 2010 Sean Devine No comments

Half of my job is focused on building and maintaining our engineering infrastructure – Strategy Management, Business Intelligence, Lean Six Sigma and Operations Research. These are the shared services that we use to improve our strategy and execution through the application of science.

For that reason, it makes me happy to see transportation covered in this month’s math feature column at the American Mathematical Societies website (http://www.ams.org/featurecolumn/archive/trucking.html). The article discusses the famous vehicle routing problem that we are so familiar with in LTL. It’s a glimpse into a bit of the complexity involved in providing exception-free, on-time and fast service at a competitive price.

Balancing Network Circuity and Density

January 20th, 2010 Sean Devine No comments

We’re pleased to finally be operational with the latest optimizations to our freight flow.  We implemented this latest round of network adjustments on Monday, January 11th. They are the latest in a series of high-impact changes that we’ve made to our network during the last two years. The changes adjusted the flow of freight in a few key corridors to run more direct paths where we have the density required to do so efficiently.

To make it easy to understand what we changed, we (thanks Olga) graphed the freight flows on Thursday, January 7th and Thursday, January 14th for the load plan legs that connect Houston, Texas and Burlington, Vermont.

The orange line shows the old flow. The size of the line is the total volume of freight travelling on that linehaul leg. We used to travel way out of the way and risked getting caught in the snow in the Midwest while moving freight from Texas to New England. Through analysis by our linehaul team, we were able to find the more direct blue route with high enough density to reduce the total number of miles that we drive. This path also helps avoid some of the winter weather that can threaten on-time service performance.

Hundreds of adjustments like this were made to our network last week. We’re excited by the positive impact that these changes will make to our service levels and cost structure. Enjoy!

True LTL Santa and the Night Before Shipments

December 17th, 2009 Sean Devine No comments

Happy Holidays! Honk! Honk!

To celebrate the holidays, Con-way Freight created a special online card to share with customers which features our own unique version of Jingle Bells. Take a listen or play your own holiday tune at www.con-way.com/holiday. Meanwhile, here’s our take on another holiday classic…

‘Twas a Con-way Freight night shift, when through the warehouse
Not a pallet was sitting, alone and without.
The shipments were placed in the trailers with care
And Con-way Freight drivers would soon get them there.

Large shipments with small, all snug in the back
With True LTL PricingSM to keep costs on track.
A capped pricing model, refreshingly clear
To keep billing from ruining holiday cheer.

Then out on the dock there arose such commotion
I ran from my office, seemingly in slow motion.
Arriving at dock doors with shock and some awe
I could hardly believe what my wide eyes soon saw.

The parking lot lights shone on hustle and bustle
We all froze and listened … and then heard a rustle.
And what to our highly trained eyes should appear
But True LTL Santa and six tiny reindeer.

A smiling Freight driver who none of us knew
Arrived out of nowhere and into our view.
At Con-way-Freight speed his helpers assembled
And he called out their names as we stood there and trembled.

“Now Faster, now On-Time! Now True LTL!
On Innovative, Simple, Capped Pricing!” he yelled.
To the edge of the lot, and then right through the door
They flew into the warehouse, barely touching the floor.

He didn’t speak much but got right into packing,
Arranging the shipments with care and then stacking.
For near and for far, the large and the tall
True LTL Pricing would cover them all.

Then True LTL Santa ran off to his sleigh
With his six tiny helpers to fly him away.
But we all heard him say as his vessel was rising
Happy shipping to all with True LTL PricingSM!

All year long Con-way Freight is committed to providing you the improved exception-free delivery, better on-time service performance and faster transit times you expect from the industry leader. Click the link below to enjoy some additional holiday cheer.

www.con-way.com/holiday

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The “T” in LTL Stands for Triple Option

December 15th, 2009 Sean Devine No comments

This past Saturday marked the 118th annual Army-Navy game played in Philadelphia. The game was a close one at halftime, but Navy began to pull away in the second half and won the game 17-3.

John Feinstein wrote on his blog Friday that this contest “is not just a game — it’s an experience.” In fact, it’s one of the purest in the sport. No national titles or prestigious bowl bids are on the line — only pride. Both teams train all year with this one game in mind.

I have a tremendous amount of respect for the men who play in this game, and I’m proud to work for a company that makes a conscious effort to support veterans of our armed forces with job opportunities. Though none of the players will go on to the NFL, all of them will go on to serve on a much more important team.

I love watching the enthusiasm shown by both the Black Knights and the Midshipmen. Being a football fan, I also find the offensive system run by the Naval Academy fascinating.

Known as the “flexbone” offense, it’s a flashback to the days of leather helmets and the single-wing. I first learned this offense as a tailback for my Pop Warner team, and we ran a variant of it in high school as well. In today’s pass-happy football world, this offense shouldn’t work. But Navy has used this system to literally run over teams with faster, stronger and more talented players every season. The Midshipmen beat Notre Dame on the road this year, and they almost beat Ohio State in Columbus as well — an event that would have made all of our Michigan fans here in Ann Arbor very happy.

 The staple play of the flexbone is the triple option, illustrated below. 

Triple Option

(Graphic courtesy ESPN.com)

To the untrained eye, it looks like another one of my True LTL lane maps, but in reality, it’s a very simple and powerful offense.

On running plays, the quarterback always has three choices:

1) Hand off the ball to the fullback for a run up the middle

2) Sprint to the end of the line and keep running into open space

3) Pitch to the streaking tailback, coming around the end behind him

The quarterback uses a “zone-read” scheme to determine which option to choose. Based on the actions of the defensive linemen and safeties, he has to make split-second decisions as to whether to keep, hand off or pitch the ball. Quarterbacks need both intelligence and decisiveness to run this offense — qualities a Naval officer-to-be has in abundance. 

A strong triple option offense has many of the same qualities as a great LTL carrier. 

1) Adaptability. You have to know what your opponents in the industry are doing at all times and react quickly. Can your LTL carrier adapt to your evolving needs?

2) Speaking of fast, the triple option needs a fast tailback in order to outrun lightning-quick linebackers. Carriers need to have similar speed in order to excel with their customers.

3) The quarterback running the triple option needs to be exception-free. He can’t make any mistakes. In football, mistakes lead to turnovers. In business, LTL carrier mistakes could lead to turnovers of a different sort (e.g., loss of income or loss of business).

4) Every element in the triple option has to be delivered on time. If the quarterback hesitates or waits a half-second too long to pitch the ball, disaster can occur. How is your carrier’s on-time service record? 

When an LTL shipper has these triple option characteristics, it ensures a clean handoff of your freight every time. To see that in action, choose Con-way Freight.

The Five People You Meet in Trucking – Introducing: An LTL Freight Biller

November 13th, 2009 Sean Devine No comments
Barbara Agnello

Barbara Agnello

It takes a lot of behind-the-scenes work to provide seamless less-than-truckload (LTL) shipping. One of the critical processes that isn’t well understood is billing — entering and matching details from the bill of lading into a billing system to ensure safe movement and accurate invoices.

To learn more about billing, I e-mailed with Barbara Agnello, a biller for Con-way Freight who works out of our Akron/Canton, Ohio, service center. In 1999, while out for a drive, Barbara passed by the center and stopped in to ask about a job. Little did she know that the visit would lead to a successful career in billing with Con-way Freight that would last for the next 10 years … and counting.

During our e-mail exchange, she told me about achieving invoice accuracy, challenges and tips for success, and even the role of the customer in the billing process.

Maybe we can all learn a little something new when it comes to the business of LTL freight billing. I know I did! Here’s what I found out:

How and when did you start your career in freight billing?

In 1975, I began my first job as a billing clerk at Pilot Freight Carriers in Ohio. After pursuing jobs in other fields, I returned to trucking in 1986, working for a trucking company in Florida. There, I spent the first five years doing billing and other administrative work, before spending the next five in charge of the 28-door outbound operation after 6:00 each night.

I loved the challenge and learned so much about dock operations during that time. So when I moved back to Ohio to be with my father, I found Con-way Freight. The rest is history.

Since you started your career, what’s the biggest change in the billing process?

The biggest difference in the billing process today, as opposed to the mid-‘70s, is the technology. Back then, I actually billed on a machine that fed the bill sets up through the machine from a box under my desk. The advances in technology between then and now are mind-boggling, and they’ve really allowed us to improve everything we do.

What are the most important characteristics of a good biller?

Successful billers stay focused. They also enjoy what they do and can prioritize their work based on levels of difficulty or time of day. Knowing when you’re most efficient is helpful for me and I think it’s important to recognize that, especially in an industry with multiple shifts. I like second shift, but everyone’s different. I’ve been lucky to work at a time that works for me.

Other qualities that separate good billers from the best, in my opinion, are attention to detail and strong spelling skills. While most of the billing process is automated, we still have to enter information manually. It’s important to enter new accounts into the system carefully so that information is accurate moving forward. Also, paying attention to spelling is a must. It conveys a message of quality and professionalism to our customers.

Any tips on how to ensure invoice accuracy and efficiency?

Everyone has their own unique way of approaching their work to avoid errors and maintain efficiency. I’ve created check systems for myself that help me catch the most common error — the proper use of freight terms. For instance, I keep the bill on my screen and, before I hit enter, I cross-check it with the bill of lading to make sure the freight terms match. The way I look at it, I’m probably saving anywhere from an extra 100-150 corrections a year just by that one simple split-second glance at my screen on every single bill entry. I also group my bills so that I get all of the most difficult ones billed first, while saving the easier ones for the end of the day when I’m tired.

Another very useful tool is Wikipedia, which can be used to look up a class or NMFC number for a shipper’s freight if it’s not apparent. Whitepages.com is similarly helpful, particularly when you can’t read the handwriting of a consignee name or street address, or need to contact them and can’t quickly find their contact information.

What are the biggest opportunities to improve Con-way Freight’s billing effectiveness that you can’t directly implement?

I see errors in the spelling of company names and street addresses that print out on the customer’s invoices. Those types of errors don’t look good.

The other problem I encounter on a daily basis is in the way e-bills are entered by shippers, consignees and third parties. While many of our customers are very computer-savvy and enter their e-bills perfectly, there are still many e-bills that require creative techniques on the part of the billers. There’s a lot of time involved in reviewing and correcting the errors that appear on e-bills because of the way they were submitted.

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Honoring a two-time winner

October 29th, 2009 Sean Devine No comments

This has been a year of wins for us, and one of the best took place at the National Truck Driving Championships in August. Dale Duncan, a Con-way Freight driver sales representative based in San Diego, was named National Grand Champion — for the second time in four years. He came out on top of 415 other drivers in the annual test of driving skills and knowledge, and also won first place in the individual 5-Axle division.

Clearly Dale is a great driver, and a fantastic example of the caliber of professionals who take the wheel for Con-way Freight every day. In his nearly 20 years with us, he’s logged more than 1.25 million miles behind the wheel, accident-free. He is, quite simply, the best of the best — and that’s what you get when you call Con-way Freight.

Below, Bob Petrancosta, vice president of safety, and Neil Smith, Western Region area vice president, present Dale with a check from Con-way Freight for his achievement. Later, the company will give him a new truck displaying his name and championship title to drive for the next year. Congratulations, Dale!

Dale Duncan, 2009 National Truck Driving Grand Champion

 

Con-way Freight’s Global LTL service – today’s answer to the clipper ships?

October 27th, 2009 Sean Devine No comments

More than 150 years ago, the Gold Rush in California and an increasing market for Asian goods drove demand for just about every commodity. For the merchants of the day, success was a matter of transporting freight from source to market as quickly and reliably as possible. Transit times had to improve, since popular products like tea from China often took so long to arrive on cargo ships that they were stale or damaged by the time they reached customers.

Enter the clipper ships: long, sleek tall ships with billowing sails, loaded to the brim with freight and crashing through waves at previously unimaginable speeds. In fact, China clippers — noted as the fastest merchant vessel — could reach average speeds of more than 16 knots (18 mph). These ships could travel 400 miles per day, compared to the standard cargo ship, which could only travel 150 miles per day. Fast and reliable, they became a truly innovative solution to the long and complex supply chains of the day.

As a result, the tea could get to market before it went bad. And products could get into shops in San Francisco during the Gold Rush heyday with record lead times and within narrower delivery windows. Markets throughout the new American West were created and nurtured, because transit times got faster and reliability got better.

Sound familiar? Clipper ships delivered the way Con-way Freight’s Global LTL service does today — from our OceanGuaranteed® solution out of Asia to our alliance with TNT for expedited service from Europe. Consider this: Typical LCL shipments can take 28 to 32 days to reach the United States from Asia. With OceanGuaranteed, the same LCL shipments take only 17 to 20 days. The clipper ship? Nearly three months!

While our solutions might lack some of the majesty of the historic clipper ships, Con-way Freight is on a mission. To deliver in a changing world where only the best survive.

The_Cutty_Sark

What are you shipping?

October 15th, 2009 Sean Devine No comments

Tag clouds like the one on this blog are visual depictions of the content of websites, with the most important words set off by font size and sometimes color. Generally, the most-used words are the largest. Our tag cloud at right is a great example of that. One look and you’ll notice that “True LTL Pricing” is largest, followed by terms like “no waste” and “sustainability.” For those familiar with our True LTL Pricing, that’s probably no surprise.

As an experiment, I decided to create a commodity cloud: a tag cloud showing the content of shipments that have most benefited from True LTL Pricing. The result was pretty interesting. It gives you a sense of the wide variety of commodities that move through the Con-way Freight network every night — like plastic, rubber and machinery. Less common? Ink, cigars and toilets. Check it out below.

Want to create a tag cloud of your site or data set? Sites like TagCrowd.com, ToCloud.com and MakeCloud.com make it easy.

Image below created using Wordle.net. Special thanks to Con-way Freight employee Matt Wildrick for the commodity cloud concept.

True LTL Commodity Cloud

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