Load Rank Audit and Analysis Part 1

Good evening and welcome to the load rank audit and

analysis, ford paris foods.

I'm excited to introduce you to the team.

Jump into our award.

Jump into some data that we have that we pulled

internally from the start of the bid this year, up

until our current date.

First off, let's introduce you to the T myself Alex

johnson and the manager of customer operations, Trevor Rizzo, who

has done phenomenal things for the account and building great

relationships with jean Heller over there.

He is our customer operations representative, he handles the day

to day and we have Jared Klyuka who is our

customer account manager who manages the relationship in which we

get our committed and spot great.

I'm excited to join you guys tonight.

We're gonna go over our mission what we want to

accomplish. Jump into some data and then also be able

to speak to some of our department heads that have

a very, very keen eye for what load ranked beans.

So what is our mission?

We want to audit low drink entry.

We want to analyze lowering country and at the end

we want to provide a solution jumping into the data.

If we look at our awards, We rewarded 98 Lanes

Of those, 98 most of our freight comes out of

the trap, Maryland, Lexington, north Carolina walkersville michigan and Madison

Wisconsin. Those are tough areas to secure trucks right now

and they will as we head into the fall, why

not hunting season, a ton of different factors but those

all play into load ranks and how we communicate them

internally Out of those 98 awarded Lanes, What else does

the freight look like?

Total lanes that we have moved four pairs rate since

the bit started?

As 344.

There is a lot of committed in a lot of

spot. Normally we want to end up on the top

side of the spot versus committed.

We will be able to see that as we move

forward. Next up we have leggings that are marked both

spot and committed.

146 of the 344 lanes marked this both spot and

committed totals 57%.

There are two things I think about when I look

at this, have we met our weekly commitments for our

customer and are we able to spot what those on

top. Do we utilize price here and quote type accordingly

as we enter the data.

Those are the things that we want to look at

as we go through this analysis and we will be

able to speak to that through the next couple of

slides as we look through those, how they are marked

we can see 148 lanes were marked s spot.

Do they have a lot of money in them or

do they not?

Those are some things that will be able to see

is Jared doing the right thing.

Is he communicating with the operations team to make sure

that we are entering that data correctly so that we

can utilize it in return as we move forward lanes

of art spot with positive margins, 101 lanes marks spot.

We made money on with an average of 15.5% margin

I'd say Jared is doing his job that is for

sure. However, what goes up must come down as we

move forward.

We'll be able to see lanes marked spot with negative

margin Again 101 were marked spot that we made money

on. However, 44 lanes marked spot we lost money on

with an average of negative 26.3% margin.

Those are tough.

Is it because we don't have the right data in

front of us as far as how we price things

or are we marking loads incorrectly Out of those?

44 lanes, are any of them actually committed?

That is why when we input that data it means

a ton to how we evaluate what we are doing

as a company as a team.

And also with a certain count, lanes marked, committed, We

had 196 lanes Martin as committed.

Same thing goes for committed.

Are we marking those correctly?

Because some we make money on and some we don't

how do we determine that those who are inputting the

data are in the driver's seat that will be mentioned

a couple of times throughout this presentation as we can

see lanes Mark committed with positive margin, 90 lanes marked

as committed.

We made money on with an average of 9% margin.

We would love to be at the 10% margin mark

for those that we make money on and above.

However, the same thing what goes up must come down

our line is being marked correctly.

We hope so because we definitely do not want to

lose money on spot free.

But as we take a deep dive in, we can

see lanes Mark committed with negative margin.

There are 105 lanes marked as committed that we lost

money on An average of negative 17.9 however, Are negative

margin here.

Uncommitted is actually better than the 26.3 I believe that

we had for spot.

So we want to make sure that we are offsetting

those. The information that we put in the loads makes

a huge difference.

So that we can see the value of what we're

quoting what we are putting in the system and how

we are evaluating that data to again initiate conversations with

our customers.

Now, as we move away from lanes, we're gonna move

into loads.

How many loads have we moved since the start of

the bid?

Total loads moved is 6754 I'd say Trevor is quite

the busy operator.

That is for sure of those lanes.

What do we have here Of those loads marked as

committed? We had 3,156 lows marked as committed 47% of

our freight is marked as committed.

What do we normally want to look at?

We'd love to be at the 60 40 mark 50

50 you'll see a couple of people who have processed

through what do we want to look like as far

as our committed business versus our spot.

So 47% tells me again that Jared is doing a

good job at getting us in front of our committed

business. As you can see 53 of our loads that

we have moved since the start of the bed.

3598 remarked a spot.

We are on the winning side.

We want to be above again committed versus spot.

Is that true?

That all comes down to the integrity of the data

that we put it, does it come down to the

sales rep?

Does it come down to the operator?

Does it come down to the account manager?

Whoever is in putting that data is going to drive

those numbers in one direction or the other?

We want to make sure that were consistent with that.

We wanna make sure that we have constantly communicating on

if a loaded spot.

If it's committed, we do it daily via email via

slack channel, whatever it might be because those are huge,

huge parts of again, how we drive internal communication and

also external communication with our customers as you can tell

again, we were on the positive side as we look

through this lane data as we look through the accuracy

of how we are in putting things to again provide

the power bi report on that.

Make sure that we're having the right communication with each

other to ensure that we are putting ourselves in the

best possible spot to make sure that we are having

the right conversations with our customers throughout this process.

As we look through the load langdale analysis and the

audit. I asked myself who would be the best people

to talk to about what low drink means to them.

They have industry knowledge.

They've been a huge players in the game.

So I was able to actually sit down with a

few of those people, one of them being derek settling.

I was able to ask Derek what does low drink

mean to you?

So that's about understanding our business as we make commitments

for each customer.

Each customer has.

It's only that we accept freight.

What do we need to accept versus what we can

reject? How are we making those decisions, Who are we

talking to?

What is the data that we're looking at?

We wouldn't contracted business by being competitive at that given

time markets go up markets go down.

If we're having conversations with the customer, we want to

make sure that we're having the correct ones.

We accept business based on our obligations.

KPI S are huge and every customer is different.

Is that except 95% of our primary do we have

backup freight?

What's our acceptance percentage for that?

Understanding those things and understanding our awards are a key

part and how again we drive communication internally and externally.

This is one of my favorites.

As I was talking to Derek, he told me about

the primary protection plan.

As mentioned, this is probably one of the best visuals

I have seen be it stock market, the internal freight

market, whatever it is.

As you can tell at the inflection point above the

molo symbol in the middle of the graph we bought

a contract At $687 just under what the spot market

was paying at that given time.

We uphold that commitment for a set amount of time.

The quarterly, annually, monthly bi weekly.

But with this visual we are able to show a

customer what we protect them from the market, the volatility.

We buy the contract at the inflection point and protect

them from that market fluctuation.

If you are able to present this information in front

of a customer.

It is a game changer.

I commend Derrick on this and I think it's phenomenal.

I think it's such a good visual for us to

see as operators.

Why? Because we're not involved in the pricing piece of

it. However, we can look at what drives spot versus

contract and low rank.

So when we can see that we are protecting the

customer in that dark purple middle.

It's wild to look at if you're moving 10 loads

a day.

687 is the rate that we got locked in and

it's moving at 866.

It's a lot of money that we are protecting the

customer from being able to see that being able to

look at our load rank.

We hope that drives conversations with the customer for us

to have primary access to spot free.

We want to make sure that we are their number

one broker.

How we communicate how we execute and how we present

that data is huge as we continue with Derek data

integrity. I cannot express how important this is whoever is

responsible for entering the data.

They are in the driver's seat.

If we don't know what spot versus contracted, how can

we tell who's doing good or not.

Accountability is a major factor.

It's something that we drive home on our team every

single day being from communication, good, bad or ugly.

But also what we are doing internally being in a

facility file in our appointments, being in transit time, accountability

is key.

One of the key accountability that we have to make

sure that we are doing on a daily basis is

putting the correct low rank and loads because it does

so much for what we do internally and externally another

key point that me and Derek were able to talk

about, does load rank affect how we view the market

internally internally.

We can tell how the market is acting based on

spot and contracted percentages fluctuated.

If spot market margin starts to decrease, we can see

that there's less freight moving within our network.

If contractor margin starts to increase, we can see that

okay now, all of a sudden supply and demand switches,

drivers need freight.

They look at the contract, the lanes that we have.

We negotiate a price sometimes were even able to lock

them in and dedicate them.

However, making sure that we are putting the correct load

Rankin really tells us what we are looking at internally

as the market fluctuates next time I list.

Load Rank Audit and Analysis Part 1

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