How Data Drove Roadrunner's Big Comeback - Fleet Management

How Knowledge Drove Roadrunner’s Huge Comeback – Fleet Administration



With a less-than-truckload operation that makes use of owner-operators and small carriers, managing the community and the freight turns into a posh query. Roadrunner turned to machine studying to assist.

Photograph: Roadrunner


Roadrunner Transportation was close to loss of life’s door in 2017. After going public in 2010, in 5 years Roadrunner had made greater than 20 acquisitions. Nonetheless, these principally truckload acquisitions affected the corporate’s service and status in its conventional less-than-truckload market. The corporate was bleeding cash, dropping hundreds of thousands of {dollars} — however hiding these losses from shareholders, regulators, and clients by manipulating its monetary stories.

All of it got here crashing down in 2017, when Roadrunner introduced that it could restate its beforehand reported monetary outcomes as a consequence of accounting irregularities. Shareholders misplaced hundreds of thousands when the inventory worth plummeted. Former Chief Monetary Officer Peter Armbruster would ultimately be sentenced to jail for securities fraud and ordered to pay $1.14 million in restitution. The corporate itself ended up settling with the Securities and Change Fee earlier this yr.

New management was introduced in to show the corporate round. By August 2020, Roadrunner had divested its truckload enterprise, turning the corporate again right into a standalone less-than-truckload service — and was again within the black financially.

At present, Roadrunner payments itself as “transportation’s biggest comeback story..” It says the service has been acknowledged by Newsweek as considered one of America’s most reliable corporations and awarded Most Improved LTL Service by Mastio. And it continues to win service high quality awards from a number of shippers.

“Now we have been working with Roadrunner for the final 12 years,” says James Vickery, head of logistics at Roadrunner buyer Customized Service {Hardware}. “Roadrunner has not at all times been probably the most reliable LTL service, however they’ve modified loads within the final couple of years. They actually concentrate on getting issues when and the place anticipated and enhancing their lane occasions and repair ranges.”

Roadrunner this yr is increasing its community for the primary time in years with new inbound service to Denver. The service to Denver marks step one of recent market expansions, with openings of Kansas Metropolis and Portland deliberate for 2023.


Roadrunner's investments in technology, increased lane density, dock automation, and training and service center improvements allowed the carrier to improve transit times in 130 major lanes.  -  Photo: Roadrunner

Roadrunner’s investments in know-how, elevated lane density, dock automation, and coaching and repair heart enhancements allowed the service to enhance transit occasions in 130 main lanes.

Photograph: Roadrunner


“At a really excessive stage, our technique is to develop into the perfect LTL supplier within the U.S.,” explains Tomasz Jamroz, head of operations linehaul and know-how. “Our objective is to not be every little thing to everyone. Our objective is to supply a specific area of interest available in the market. We’re not competing with the XPOs and Saias of the world.”

That area of interest is specializing in metro-to-metro transportation, with quick, direct service, no relays, and minimal dealing with.

“Our technique is to actually provide our clients what they really want. We’re not attempting to be the most cost effective however attempting to be the perfect worth suppliers available in the market.”

Knowledge-Pushed Choices

To perform this, the Downers Grove, Illinois-based firm turned to information evaluation and machine-learning know-how. As an alternative of doing issues the way in which it used to, Jamroz says, management determined to make selections based mostly on information.

Roadrunner made the enterprise resolution to deal with the event of its next-generation logistics know-how as a start-up enterprise. It recruited from exterior the logistics business and launched an incubator to help the event and deployment of a state-of-the-art know-how platform.

All this meant a tradition shift.

Prior to now, Jamroz says, there have been lots of “silos” within the enterprise, with executives in every silo making their very own resolution, combating with different silos, everybody embroiled in company politics.

At present, departments are extra built-in.


"The point of data is not to make you look good. It’s actually the opposite," says Tomasz Jamroz, Roadrunner head of operations linehaul and technology.  -  Photo: Roadrunner

“The purpose of knowledge is to not make you look good. It’s really the other,” says Tomasz Jamroz, Roadrunner head of operations linehaul and know-how.

Photograph: Roadrunner


“Certainly one of my direct stories was telling me it’s so wonderful she will be able to go and speak to anybody within the group to unravel issues,” he says. “As a result of we created that tradition of enabling everyone to drive the change. Shifting from that tradition of 1 particular person taking all of the glory versus the entire workforce working and folks being empowered to make selections.” As a result of these selections, he says, are based mostly on information.

Jamroz, who’s enthusiastic about information, calling himself “a knowledge cookie monster,” obtained his begin at Roadrunner working to make the required information obtainable.

“As we have been enabling it from a technical perspective, we stood up a knowledge governance course of,” he says, to verify everyone seems to be utilizing the identical information, that uncooked information shouldn’t be being manipulated to make some extent. You possibly can’t have the gross sales workforce excluding a sure bit of knowledge and operations excluding a special bit of knowledge.

“We have been completely different stories, and a few individuals eliminated some codes as a result of they make us look unhealthy. That’s not the purpose of getting information. The purpose of knowledge is to not make you look good. It’s really the other. The information wants to have the ability to inform you the place you’ve gotten an issue…. [and] easy methods to develop into higher.”

As the corporate moved to a extra data-driven group, administration was in a position to determine inefficiencies and tackle them.

“We checked out our community and recognized sure terminals and areas [brought in through acquisitions] that made zero sense from our perspective,” he says. “So we went by means of a little bit of community reorganization and found out we don’t really want to serve that space. We have been simply creating complications for ourselves.”

A kind of data-driven selections was divesting its intermodal enterprise.

“Rail was not good for our clients,” Jamroz says. In 2020, Roadrunner was transferring 30% of consumers’ freight on the rails. At present it’s zero.

“We run 0% of our miles on rail, and we stopped counting on low-quality third-party agent companions in distant areas,” says Shari Leon, Roadrunner vice chairman of linehaul operations. “Now we have best-in-class custodial management and supply full monitoring visibility to our clients. We concentrate on the place we’re finest, a Sensible Community connecting extra metro-to-metro lanes instantly and quicker than ever.”

Roadrunner makes use of workforce drivers the place wanted, a number of day by day departures and customised dock automation, and offers shippers entry to its community on weekends with what it calls “Weekend Plus.”

Making a Sensible Community

With a less-than-truckload operation that makes use of owner-operators and small carriers, managing the community and the freight turns into a posh query.

“Take into consideration what number of enter parameters should be considered whenever you transfer the freight,” Jamroz explains. “I’ve about 30 terminals. The permutations that may exist between these terminals are within the 1000’s. Take into consideration what number of zip codes in these terminals. Then I’ve the motive force transferring from level A to level B. The terminal must be open on the origin and vacation spot for it to work. Then I’ve the motive force, he can drive a variety of miles, however we have to take into accounts the hours of service. And that is only the start.

“There must be a cargo stepping into that course that must be picked up or delivered domestically that can be utilized for aggregation of freight, as a result of I don’t need to ship a half empty trailer throughout the nation.

“Then we have to look into the fee, which is one other enter that your fashions or algorithm must take into accounts. Then I must optimize the place the motive force goes subsequent. Is he coming again to Chicago or going someplace else? And the drivers usually are not my staff. I can’t inform them they should do it, so I must take that into consideration in my mannequin.

“It’s all too advanced for a human to know.”

So Roadrunner developed its personal machine-learning algorithm that enables it to optimize the community. And over the previous 18 months, the less-than-truckload service has introduced improved transit occasions 4 occasions.

The Roadrunner workforce makes use of proprietary optimization know-how to construct direct hundreds and eradicate rehandling. The corporate focuses on assuring the integrity of custodial management of buyer freight by means of using driver groups that execute over-the-road strikes (with no buyer freight ever transferring on rail) by way of probably the most direct route doable, eliminating the necessity to re-handle and thereby decreasing the danger of loss or harm.

As well as, Roadrunner’s new app, Haul Now, permits its owner-operator drivers to run their companies and interface with the corporate.

“You could have a capability to run your individual enterprise from the palm of your hand,” Jamroz says of how owner-operators use the app. They’ll choose their subsequent load, observe their hours of service, verify their settlements, and so forth.


Roadrunner Haul Now app allows its owner-operator drivers to run their businesses and interface with the company, while providing data Roadrunner and its customers need.  -  Photo: Roadrunner

Roadrunner Haul Now app permits its owner-operator drivers to run their companies and interface with the corporate, whereas offering information Roadrunner and its clients want.

Photograph: Roadrunner


And that information feeds into Roadrunner’s system so it is aware of which driver is taking which load, the place the motive force is, what number of hours of service they’ve, trailer data, and so forth.

Plus the real-time information about cargo location is one thing wanted by Roadrunner clients.

This new app launch follows know-how enhancements in dock automation, inner information evaluation, and buyer reporting.

Giving Clients What They Need

The corporate targeted on giving clients what they actually need, Jamroz says.

“We determined to go away from how the business is measuring this service,” which includes lots of codes. “From a buyer perspective, they don’t care if someplace in the course of Texas there was an enormous storm or one thing occurred,” he says. For them, the query is at its most elementary, “Did you obtain your toothbrush or not? (Or regardless of the freight could also be.) So we’re introducing our personal metrics the place we’re issues otherwise — is it success or fail?”


With a new start came a new logo for Roadrunner last year.  -  Image; Roadrunner

With a brand new begin got here a brand new emblem for Roadrunner final yr.

Picture; Roadrunner


Exceptions, he says, are one metric for measuring that success, and an vital one for patrons. Roadrunner has reduce these exceptions from 3% to 0.7%.

“We measure ourselves by the metrics that matter most to our clients,” Jamroz says.

To realize that, the place wanted, Roadrunner makes use of driver groups. He presents the transit time from Chicago to Los Angeles for instance; the corporate makes use of groups solely on that lane.

Roadrunner’s drivers are all owner-operators, which Jamroz calls companions. “Like several sort of entrepreneur, they don’t work simply Monday by means of Friday.” That results in what Roadrunner calls its Weekend Benefit. The Chicago-LA route takes three days. A load might head out on a Friday and the shopper will get it Monday – which for a corporation that works Monday by means of Friday is just one enterprise day.

“Our Chicago-to-SoCal and SoCal-to-Chicago lanes symbolize the quickest transit occasions within the business, providing expedited service at LTL charges,” says Phillip Thalheim, director of community analytics.

Steady Community Optimization

In January, Roadrunner carried out its up to date proprietary Load Plan 2.0, additional rushing up its community throughout 130 main lanes.

“Our investments in know-how, elevated lane density, dock automation, and coaching and repair heart enhancements enabled us to enhance transit occasions in these 130 main lanes whereas sustaining service ranges above 90%,” Jamroz explains. “Our steady community optimization is predicted to lead to extra transit time enhancements in 2023.

“That is model 2, however I can guarantee you we’re going to have extra nice information in 2023, as a result of we expect that we cracked the code. We now actually obtained to the purpose the place we actually perceive and concentrate on optimization. It’s type of wonderful tuning every little thing we do to develop into the perfect model of ourselves.”



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