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Put Your Company in Control of Home Delivery Operations
The Anatomy of a Relationship: How RouteSmart and ADS Figured it Out!!!
Corporate Details
• Privately wholly owned subsidiary of the Bowne AE&T Group
• Over 25 years of experience• Nearly 300 active clients, 1,500 license
deployments• Over 100 in the home delivery industry
• Vertically focused solution provider
RouteSmart Solves High-Density Routing Problems
Original Cycle Month Balanced Cycle Month
Industry Segments
• Public Works – largest segment in terms of # of clients• Newspaper – home delivery & single copy operations• Utility Meter Reading – walk and drive route planning
for cycle day balancing, metering, and field service• Local Delivery – FedEx, Australia Post, Itella, Swiss
Post, etc.
Business Model
• Focus on solving the specific routing issues found within target segments
• Emphasis on high-density precise side-of-street routing
• Be the best at solving these issues, with a commitment to clients and & the core vertical markets
What do I do for RouteSmart?
Focus mainly on anything OUTSIDE of those core vertical markets!?!
(and play golf )
Lets go back to Q1: 2012
• The “Occupy Wall Street” movement is in full bloom• The World Record for “Most people pulled by a single boat” is shattered
(145, FYI)• Joe Paterno, Penn State’s Head Football Coach, dies of lung cancer• Facebook files for it’s initial IPO offering• The cruise ship Costa Concordia capsizes• Prime Minister Vladimir Putin “wins” Russia’s Presidential Election • Wendy’s overtakes Burger King as the 2nd best selling burger in the US• Jason Fry attends his first AAPS conference!
2012 AAPS Conference
• Held in, reportedly, beautiful Hollywood, FL. Though…
…after a Dade County record 4 day rainfall, we’re not so sure!!!• The Philadelphia Flyers defeat the Pittsburgh Penguins in Round 1 of
the NHL Playoffs • Jason Fry meets Cord Johnson (UHD)
August 2012: Jeff Hoppe (ADS) reaches out to me regarding an upcoming job in Houston, TX
From: Jeff L. Hoppe [mailto:[email protected]] Sent: Tuesday, August 14, 2012 6:38 AMTo: Jason FrySubject: Routing - Pricing/timeframe Jason: Jeff Hoppe here, Director of IT at ADS Direct Media. Cord Johnson at United Home Delivery was kind enough to pass me your contact information. We have a project that we’re working on that may require some walk/drive-sequence routing.
It is approximately 15,000 addresses in about 75 different ZIP codes (each ZIP code contains between 50 and 400 addresses). We’re looking to get these addresses within each ZIP code “routed” in a drive-sequence order, and also get a manifest of the stops (like “Turn LEFT on Elm St, stop at 123 Elm St, 125 Elm St, turn RIGHT on Main St, stop at 123 Main St, etc.”). What kind of pricing and turnaround time are we looking at for something like this? We’re hoping to get this done ASAP, so whatever you need from me to expedite this, I’ll provide. Thanks, and I look forward to hearing from you! Jeff HoppeDirector of ITADS Direct Media(210) 655-6613 [email protected]
Great Idea, Jeff!!! BUT…Do the Economics align?
From: Jason FrySent: Tuesday, August 14, 2012 2:47 PMTo: Jeff L. Hoppe [mailto:[email protected]] . HoppeSubject: Routing - Pricing/timeframe
Hey Jeff, good to hear from you and you bet we’re still in the routing business…the world’s most intelligent routing system isn’t going away!
Regarding the job you’ve described and the pricing you’ve requested…we think this is the area you can help us most! WE DON’T KNOW WHAT TO CHARGE because we don’t understand the economics of your business. For example, within the newspaper sector of our business, we know that the circulation count drives the amount of money a publication can charge to their advertisers i.e. the higher the circulation, the higher the revenue of a newspaper. We don’t have any of that understanding in the “canvasing” market. So, can you help us? If you’re willing to be our guinea pigs, we’d welcome the opportunity to understand the economics of your business. How do you price a job: per piece? per geography? What’s the net revenue per piece? How many address are in a canvasing job? An address specific job? What’s your annual revenue? Until we can understand the economics of your business, we’re simply throwing out pricing numbers to see if they stick—which so far, they have not! We’d love to help you scale your business up…we’d love that scale up to be mutually beneficial. Have a wonderful holiday weekend…J.Fry JASON M. FRY | Business Development ManagerRouteSmart Technologies, Inc.8850 Stanford Blvd., Suite 3250Columbia, MD 21045 T 410.290.0226, ext. 3233T 800.977.7284, ext. 3233C 619.972.9512E [email protected]
October 2012: Jeff Hoppe (ADS) again reaches out to me regarding an upcoming job in Seattle,
WA
From: Jeff L. HoppeSent: Wednesday, October 17, 2012 11:01:15 AMTo: RouteSmart InfoSubject: Routing in SeattleGood morning! My name is Jeff Hoppe, Director of IT at ADS Direct Media in San Antonio, Texas. I had previously worked with Jason Fry there at RouteSmart concerning some turn-by-turn routing manifests/directions for a job we had in Houston, TX. We have another opportunity coming up in the very near future in Seattle, Washington – total quantity of about 17,000 addresses. I’d like to speak with someone concerning the generation of these routing manifests and turn-by-turn directions. Jason and I had previously agreed to speak about turnaround times and cost for this type of routing effort, but I am not able to make contact with Jason to push this effort forward. I can be reached via phone or email, both of which are included in the signature below. Thank you for your time, and I hope to speak with someone soon! Jeff HoppeDirector of IT ADS Direct Media12746 Cimarron Path, Ste. 120San Antonio, TX 78249 (210) 655-6613 [email protected]
May 2013: Jeff Hoppe (ADS) AGAIN reaches out to me regarding an upcoming job in Texas
From: Jeff L. Hoppe [mailto:[email protected]] Sent: Thursday, May 23, 2013 11:12 AMTo: Jason FrySubject: RoutingImportance: High Jeff here from ADS, long time, no talk! I remember in the past that you had done some pro-bono routing for us with the expectation that we would be running through more routing with you. We kind of fell off on our end of the bargain there, simply because our sequencing needs kind of dried up. That’s changed. We are executing several address-specific deliveries and have been using postal carrier route sequencing which is not exactly optimal for our uses. I believe I remember you saying that you had the ability to take a set of addresses and sequence them in a way that was more “logical” than what the post office provides. We are executing at LEAST 4 more address-specific efforts (if not 6 or more) over the next two months that we really need this type of sequencing done for. We’d like the walk sequencing done at the postal carrier route level (which I can provide in the address data file), and each of our efforts is, on average, about 30,000 addresses total (some more, some less, but that’s a good ballpark). I have a few questions for you: Are you still in the business of doing this?If I dropped 30,000 addresses on you, how quickly can that be turned around? We would be under severe time crunches on these.What’s the cost? Can we break it out by cost per address, or cost per 30,000 records, or some such thing? We’d like to have a follow-up call with our client on Wednesday and really give them some good news that we have a routing solution that works better than what the post office provides, and I’d like to be able to hold up our end of the bargain in funneling more work your way. Let me know as quickly as possible, as we really appreciate it… thanks! Jeff HoppeDirector of IT ADS Direct Media12746 Cimarron Path, Ste. 120San Antonio, TX 78249 (210) 655-6613 [email protected]
The Initial Test:
• ADS provided 2,500 addresses
• Each record contained an “Existing Route” and “Existing
Sequence”
Embarrassingly, the results were:
• ~31% savings in time • ~35% savings in mileage
Map Example 1:
Map Examples 2:
Another 15 months pass….
• 84-year old woman in Florida is the sole winner of a record breaking $590M Powerball Lotter Jackpot
• Kinky Boots rules Broadway taking home 6 Tony Awards including Best Musical
• A news study finds that chickens possess numeracy skills and self-control (if this is true, I’m not sure we should be eating them!!!)
• Former New England Patriot star, Aaron Hernandez is formally charged with murder
• Floyd Mayweather runs his record to 47-0 with a unanimous decision over Marcos Maidana
• ADS & RouteSmart are “aware” of one another now, but can’t quite seem to get the economics right!?!
August 2014: Jeff Hoppe (ADS) reaches out to me regarding an upcoming job in TX
From: Jeff L. Hoppe [mailto:[email protected]] Sent: Thursday, August 14, 2014 1:29 PMTo: Jason FrySubject: Address geocoding/routing? Jason: Jeff Hoppe here, you and I spoke some time ago while I worked at ADS about routing and such. We've come across one of the RouteSmart products for newspaper routing and have some questions. We've got several upcoming jobs that require us to CASS-certify some address lists, bounce them against a do-not-deliver list and remove certain addresses, then rooftop-geocode the addresses, and finally group and route them in a walk-sequence for each grouping. Is this something that can be done? We have 4 to 6 upcoming jobs in the next week that would require this, and we'd like to get started pretty quick. Jeff HoppeDirector of ITADS Direct Media(210) 655-6613 [email protected]
Only this time we agree to terms…
This is where it gets complicated…
• All address are to be “Walk Serviced”• Routes are to be Balanced with a goal of 150 stops per route• Whenever possible, routes are not to exceed a maximum of 200 stops
per route*• The Starting and Ending point for each route will be the First Stop and
Last Stop as determined by the algorithm with the goal of minimizing time and mileage
• Each route is attributed with a Priority Zone, so that only addresses with the same Priority Zone can be routed together
…from a routing perspective!!!
The Basic Terms…
• $.04 per address• Minimum of $500 per job• 72 Hour turn-around time• XY’s will be provided by ADS, but only used as a secondary method of
geocoding where RouteSmart cannot assign a geocode to the address
• Required Deliverables:• Original file returned with RS_Route and RS_Sequence appended• Turn-by-turn walking manifests
Original File with RS_Route & RS_Sequence appended…
X Y Address Postal_Code Plus_4 RS_Route RS_Sequence-81.36865884 28.58057014 825 CHICHESTER ST 32803 1005 4119 560-81.36849594 28.58072593 851 CHICHESTER ST 32803 1005 4119 550-81.36844892 28.58054247 836 CHICHESTER ST 32803 1006 4119 370
-81.366495 28.58104508 1009 CHICHESTER ST 32803 1007 4119 530-81.36639191 28.58104338 1021 CHICHESTER ST 32803 1007 4119 510-81.36642979 28.58087951 1016 CHICHESTER ST 32803 1008 4119 400-81.36561874 28.58103066 1111 CHICHESTER ST 32803 1009 4119 490-81.36553634 28.5808648 1120 CHICHESTER ST 32803 1010 4119 410-81.36532531 28.57837732 1101 MUNSTER ST 32803 1015 4119 1150-81.36528319 28.57821352 1106 MUNSTER ST 32803 1016 4119 1830-81.37011821 28.58012735 729 NOTTINGHAM ST 32803 1017 4119 890-81.36996634 28.57993299 712 NOTTINGHAM ST 32803 1018 4119 610-81.36992944 28.58011812 730 NOTTINGHAM ST 32803 1018 4119 620
5 Files received 8/28, results delivered 9/2 (after the holiday weekend)
Turn-by-turn Walking Manifests:
Since the Initial Success…
• RouteSmart has successfully completed the routing of 663,319 addresses
• Projects completed in 12 States• Turnaround time has gone from 72 hours to ~24 hours-ish
and can be less when absolutely necessary
Though it’s still a manual process…
…BUT, Moving Forward:
Groups like ADS can now get access to RouteSmart’s Routing and Sequencing solvers on an as needed basis via Routing as a Service (or RaaS)!
OPERATIONAL BENEFITS:• Solves routing and dispatching problems in seconds• Decreases planning time, total route times, and distance• Saves time and money on distribution through more effective route planning• Automates daily tasks for more dynamic delivery order sequencing• Provides on-demand routing and sequencing• Sequences routes to increase stops/orders per hour• Manages service with critical delivery times• Improves client satisfaction by ensuring deliveries get to recipients on time• Returns detailed turn-by-turn delivery order sequence• Returns routing results to integrate with telematics and navigation systems
RouteSmart Technologies RaaS client (internal):
RouteSmart Technologies, Inc.
THANKS!!!
Jason Fry
RouteSmart Technologies, Inc.
619-972-9512
