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The Logistics of Logistics

Using Artificial Intelligence to Improve the Shipper / Carrier Experience with Erik Malin

18:24

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  • [00:21] Opening / Introduction
  • [01:04] Erik, please tell us about your background? Where did you grow up? Where did you go to college?
    • Joined Loadsmart in April 2018.
    • Previously, Erik was the Director of Strategy at AFN, a Chicago-based truckload brokerage.
    • Prior to his time at AFN, Erik was the Executive Vice President of CarrierDirect, a boutique strategy consulting firm and advised companies such as Werner Enterprises, Worldwide Express, and BlueGrace Logistics.
    • While he was leading CarrierDirect, the company was ranked #261 on the INC5000 for the fastest growing companies in America, with a 3-year growth rate of 1,729%.
    • Erik has been a guest speaker for multiple companies and conferences, including the Denver Transportation Club, Landstar and most recently the 3PL & Supply Chain Summit: Atlanta.
    • BA, Finance, Michigan State University.
  • [02:06] You went to MSU for finance. What made you pursue a career in logistics?
    • I have a deep appreciation for the impact that logistics has on the economy and people’s lives.
    • I enjoyed the level of transformation that the industry was going through when he first became interested.
  • [03:17] I have seen Loadsmart in the news a lot lately – clearly bringing some innovation to the freight brokerage space. Tell us about it.
    • Loadsmart is a digital freight brokerage that is more “nerd” than “freight broker.”
    • Starts with customer experience. We make promises to their customers and build the technology to deliver on them.
    • Technology enabled through artificial intelligence (AI).
    • Loadsmart complements their services with strategic partnerships.
  • [04:57] What exactly is artificial intelligence and how does it work? How does it add value to the process?
    • AI is the practice of using machines to make decisions that usually require human intelligence.
    • Things that were once considered AI can be so common that they are hardly considered AI anymore.
    • Loadsmart leverages data from public and private sources.
    • AI adds value by providing a greater degree of optionality to Loadsmart’s customers and allowing us to guarantee capacity.
  • [08:12] Does AI enable your people to predict service failure?
    • Yes, our AI technology understands patterns and uses those to make predictions.
    • We can be proactive instead of reactive by using AI.
    • It helps us make decisions to ensure capacity for our customers.
  • [10:40] Using AI, are you replacing headcount or are you still having people on board to help your customers out?
    • We understand the difference between automation and empowering people.
    • There are areas where it makes sense to automate, but other areas where humans should be making the decisions.
  • [12:42] How does Loadsmart using AI create a better experience for carrier networks?
    • The best logistics networks are backed by a strong carrier portfolio, and a healthy carrier is also the backbone of any logistics platform.
    • Focusing people to where people should be used, we’re able to work with our carriers to ensure that they stay healthy.
    • By forming these relationships, we enable carriers to fill out their networks and improve their revenue per truck.
  • [14:31] So you guys are trying to track revenue per truck?
    • It’s not necessarily as simple as tracking revenue per truck, but you can pretty easily tell if you’re paying a healthy rate.
    • There are other things that may be pricing mechanisms but are more like a language.
  • [16:12] I like that it’s a better experience for the carrier and the shipper, which is something that freight brokerage didn’t always pursue. It sounds like the AI tools help you deliver that experience.
    • We are very focused on adding value to both sides.