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Re:Convoy raises $62M from Bill Gates and other luminaries t... by pg_bot on Tuesday July 25, 2017 @04:44PM (#14851690)
Speaking as the son of a trucker who spent a summer helping my dad negotiate and optimize his freight rates and schedules, the freight brokerage business is not one I would consider getting into. There is also a ton of competition in the freight brokerage space and the problems associated with shipping are due to poor warehouse management and unreliable truck drivers.

Unlike hailing rides in a taxi, manufacturing and shipping generally holds a regular schedule. If you build a reputation as someone who always shows up on time, you can make a lot of money as a truck driver (more than most programmers). After building a good reputation you cut out the broker and work with the manufacturers directly. All you need to do is find two manufacturers in a high paying industry, (pharmaceuticals, chemicals, specialized plastics) whose pickup and dropoff points are near one another and you can be set for years.

Most poorly run warehouses can be backed up for 4-6 hours before you can begin unloading. Most standard contracts allow 2 hours from the point of arrival to fully unload your truck. We would negotiate our billing like a lawyer. For any additional time after that grace period we would charge in hourly blocks at over $100 per hour. Companies try to abuse their power by wasting the time of drivers by not paying them to sit idle at their warehouses. Amazon and Walmart are notorious for these practices.

I think there is a lot more money to be made using technology to run a high tech fleet of trucks than there is a freight brokerage company. Trucking is an information game for sure but there is too much competition in the freight brokerage space and you can be easily side stepped by savvy truckers.

Re:Convoy raises $62M from Bill Gates and other luminaries t... by michaelbuckbee on Tuesday July 25, 2017 @09:26PM (#14853147)
One interesting thing that Uber/Lyft/similar did in terms of markets was make it much simpler for people to track and view the reputation of a particular driver - which shapes behavior.

I wonder if something like Convoy would do similar -> rapidly highlight the unreliable truck drivers. Allow a good truck driver to carry their reputation from manufacturer to manufacturer, etc.

Re:Convoy raises $62M from Bill Gates and other luminaries t... by baillon on Tuesday July 25, 2017 @09:32PM (#14853163)
There's another side to that, too: Highlighting shippers that are unreliable or hostile to drivers. E.g. shippers or facilities that have disorganized staff, incur egregious waits, etc.
Re:Convoy raises $62M from Bill Gates and other luminaries t... by TeMPOraL on Wednesday July 26, 2017 @07:42AM (#14855326)
Is there something that incentivizes the facilities to stay unorganized? If no, then maybe there is a way to help them get better (and make money on that helping)?
Re:Convoy raises $62M from Bill Gates and other luminaries t... by FussyZeus on Wednesday July 26, 2017 @08:11AM (#14855471)
As someone who worked in a will-not-be-named supply chain, the incentives are a combination of the silo-ing that occurs in any sufficiently large corporate structure, and the simple fact that if a corporation can not spend money, they will not spend money.

Case in point: In our (relatively small) facility we had two different switcher trucks (the really tiny semi trucks with hydraulics in the backs so they could jack up trailers without assistance, and without the driver leaving the vehicle). Over the course of one Christmas, both broke down because the company was always cheap about maintaining the things, which is especially bad because in our climate not maintaining trucks is a terrible, terrible idea. For about a week near end of December, route drivers were having to dock their own trailers on the building and according to them, were not being paid for that time, so they either had to hand the keys to their $90k-ish trucks over to complete strangers to let them do it, or do it themselves without pay after having driven usually 3-4 hours before.

Most of the disorganization in places like this is simple shit, but the corporates constantly decline to spend literally ANY money on maintaining literally ANYTHING, plus as a corporate entity we're incentivized to be as quiet as possible, i.e. not submitting things up the chain that need doing or buying, and even better to cut costs continuously, usually by sidestepping maintenance or janitorial work.

Mind you: this business was not even remotely in trouble, it's one of the largest shipping companies on the fucking PLANET, it's just in a corporation's DNA to be stupid and cheap.

Re:Convoy raises $62M from Bill Gates and other luminaries t... by rubidium on Wednesday July 26, 2017 @08:10AM (#14855464)
Yes there is. It costs money to train and retain good workers. Cut costs, increase revenue, decrease service. As long as it's not too terrible you still have a business.

There are a lot of people running businesses poorly (from and efficency standpoint) and still making a buck.

Re:Convoy raises $62M from Bill Gates and other luminaries t... by mv4 on Tuesday July 25, 2017 @04:50PM (#14851731)
I feel that for most companies playing in this space, freight brokering is just a transitional step. It can't work long-term, just like Uber can't be viable without self-driving cars.

However, it's the best way to understand how the industry operates - if you're serious about disrupting it.

Re:Convoy raises $62M from Bill Gates and other luminaries t... by irishasaurus on Tuesday July 25, 2017 @11:29PM (#14853488)
This really is the other side of the automated trucking coin. This way they can build enough of a network to start brokering freight for autonomous trucking companies and hiring short distance truck drivers, much like pilot/captains in shippng.
Re:Convoy raises $62M from Bill Gates and other luminaries t... by mv4 on Wednesday July 26, 2017 @05:38PM (#14860610)
Exactly. The ultimate goal isn't incremental improvement of the current way for doing things, it's fundamental change.
Re:Convoy raises $62M from Bill Gates and other luminaries t... by Waterluvian on Tuesday July 25, 2017 @09:35PM (#14853179)
What's the cause of "unreliable truckers"? Is it that their ability to be on time is unreliable because of uncertainty in the travel time and traffic, or that the humans themselves do their job unreliably?
Re:Convoy raises $62M from Bill Gates and other luminaries t... by pg_bot on Tuesday July 25, 2017 @11:32PM (#14853500)
Both of those cause truckers to be unreliable. You can also include accidents, and delays at other facilities.
Re:Convoy raises $62M from Bill Gates and other luminaries t... by mcguire on Tuesday July 25, 2017 @05:05PM (#14851845)
I was left asking, what is the real difference between Convoy and any other freight broker? The collect more data? I thought IBM was already in that business.
Re:Convoy raises $62M from Bill Gates and other luminaries t... by mv4 on Tuesday July 25, 2017 @06:13PM (#14852347)
How's IBM in that business?

IBM has a few initiatives in transportation + blockchain (Maersk, also trucking in Brazil).

Anything else?

Re:Convoy raises $62M from Bill Gates and other luminaries t... by mcguire on Tuesday July 25, 2017 @06:49PM (#14852528)
I have a vague recollection of IBM working with trucking companies to collect routing and shipper's source and destination information to optimize routing.

Possibly part of their "smart shipping containers" thing that has apparently evolved into the blockchain Maersk deal.

https://www.forbes.com/2006/08/06/smart-shipping-containers-...

Re:Convoy raises $62M from Bill Gates and other luminaries t... by IgorPartola on Wednesday July 26, 2017 @10:26AM (#14856399)
Why is it advantageous to a warehouse to have the trucker sit idly by for long periods of time?
Re:Convoy raises $62M from Bill Gates and other luminaries t... by Angostura on Wednesday July 26, 2017 @10:46AM (#14856595)
I guess, it gives you extra free storage and workflow contingency. You tell the trucker you need them early. If they turn up early and you happen to have the stuff ready early great - you have some warehouse space freed up. If you're late however - no biggy - the transport is available to take it, immediately, effectively in demand when it is effectively ready. Maximum flexibility, zero additional cost.
Re:Convoy raises $62M from Bill Gates and other luminaries t... by flamedoge on Wednesday July 26, 2017 @10:48AM (#14856616)
it's not? it may be a case of incompetence instead of malice.