Recently, our co-founder and head of product, Felipe Capella spoke with Kevin Horek, host of Building the Future, who interviews founders at startups, entrepreneurs, investors and others helping to make the world a better place. During their conversation, Felipe discusses the evolution of Loadsmart, how an awesome team is revolutionizing the logistics industry as well as life leading up to Loadsmart. To listen to the podcast, click here.
Loadsmart has teamed up with Daimler Truck North America (DTNA) to improve its carrier customers experience by digitizing and redesigning the distribution, notification and acceptance of targeted loads. This includes an entire new experience for DTNA carrier customers to get notified and accept loads online, via Loadsmart’s web and mobile applications. The partnership also involves Loadsmart managing Daimler’s loads in the spot market as a freight broker.
A VIP experience
Rising costs, increased time pressure, the best possible utilization of capacity, and compliance with the law remain of concern to motor carriers. To help DTNA’s customers succeed commercially, the partnership enables carriers to permanently reduce operating costs as Loadsmart technology sends the most relevant business to each carrier based on advanced matching algorithms. A new, reimagined and redesigned user experience for Daimler partner carriers facilitates the interaction with the system and load-acceptance flow, with a one-click load-acceptance experience.
Loadsmart is also managing a substantial part of Daimler’s spot shipment needs. By leveraging Loadsmart’s instant pricing/booking capabilities, Daimler itself has improved its productivity, efficiency and security across the spot load value chain from start to finish.
Entering a digital era…
The Loadsmart platform leverages data and machine learning technology to provide shippers an instant pricing/ instant booking experience in which truckload shipments can be booked in a few seconds. It also analyzes thousands of data points to identify which carriers are best positioned to move each load, allowing them to accept targeted loads with one-click.
“To manufacture trucks, we need carriers to deliver components and parts to our plants,” said Lori Heino-Royer, director of business innovation at Daimler Trucks North America. “Offering a customized app to our contracted carriers gives them first access to our spot business and improves critical points in our supply chain.”
In addition, Felipe Capella, Co-founder, Loadsmart, explained, “Carriers and shippers are equally vital to our success. This partnership enables Daimler to support is customers post-truck sale by providing targeted business in a digitalized, easy-to-use platform. And as a shipper itself, Daimler takes advantage of our instant pricing/booking capabilities to move spot loads with ease and efficiency.”
… for dramatic improvements
DTNA reports that the beta test of the Loadsmart app resulted in dramatic improvements in the time to execute a spot shipment – going from five hours to just 18 minutes on average – and in load acceptance rates which increased over 50 percent. In addition, the beta period demonstrated that carriers received payments in two days instead of 30 days.
Loadsmart CEO Ricardo Salgado summarized the project results, “We saw Daimler Trucks North America’s participating fleet customers increased their average number of spot loads moved by more than 50 percent and improved their average time to accept, process and deliver a spot shipment by over 90 percent. Partnering with the largest truck OEM is core to Loadsmart’s vision on building the future of logistics by interconnecting all players in a powerful platform.”
The DTNA pilot program began in October 2017 and is currently available to the company’s select customers in the United States with plans for the company to expand it to Canada and Mexico later this year.
New York, NY, January 16, 2018 – Loadsmart, the logistics technology company specializing in full-truckload shipping, today announced that Joao Bosco is joining the company as chief technology officer. Bosco’s primary focus will be to further the platform’s AI capability.
Loadsmart relies on machine learning processes to enable shippers to instantly book a truck nationwide, and complex algorithms to, after shipper booking, identify the best truck positioned to move each load. As more data becomes available and volume increases, deep neural networks will positively impact the success of the right pricing and sourcing computational processes. They will also enhance Loadsmart’s internal computer generated tasks without the need for task-specific programming. Identifying potential issues before they actually happen, or are known, will be of great value in the logistics industry.
“The opportunity is enormous,” said Joao Bosco, chief technology officer, Loadsmart. “The size of the transportation and logistics industry, and fragmentation on both sides – shippers and carriers – create a huge potential for disruption with neural networks and other machine learning technologies. I am proud of joining the dream team.”
Felipe Capella, co-founder and chief product officer, Loadsmart, said, “Bosco is one of a kind. He is a successful entrepreneur, having built his company from scratch to a successful exit, and a talented manager, growing a tech team with the right culture. His many years of experience in big data and predictive AI attest to his tech capability. While his know-how will help Loadsmart improve its software development processes, he will also contribute significantly to our artificial intelligence and predictive models such as our Instant Pricing and Automated Sourcing features.”
Prior to Loadsmart, Bosco co-founded Chaordic Systems, a company focused on big data and predictive analytics counting some of Latin America’s biggest e-commerce companies as its customers. Acting as the company’s CTO, he grew the company’s tech team from zero to more than 100 developers and data scientists, earning Chaordic Systems the Best Place to Work award several times. He eventually sold the company to Linx, a public software management company out of Sao Paulo.
Bosco has a bachelor and Masters in Computer Science. He was featured in several articles, including the cover of the leading Brazilian business magazine Revista Exame.
Following on from an amazing 2017, Felipe Capella, Chief Product Officer and Loadsmart’s Co-founder, mentions the top 4 technology trends that will be the kings of 2018 in the brokerage of truckload shipping:
Data Sharing and Open Access Logistics industry players have traditionally been very protective of their data. Freight brokers are the epitome of this trend, siloing all information and creating close environments for software use. In 2018 we will see more openness, with many companies in different businesses sharing data for mutual benefit. While initially this initiative will be to better understand market dynamics, it will provide a more efficient service to end clients in the long run. Software will also become more open to utilization across different platforms and fear of IP replication will give space to the distribution benefits of openness.
APIs replace EDIs EDIs have to die. Information is exchanged between computers like a fax machine: as a specific event, not on an ongoing basis. This delay causes multiple operational challenges, increasing the chance of missed status changes and precluding the automation of manual-intense processes such as calls and emails. Companies that want to embrace automation and integration with tech partners have to build proper APIs that are easy to use and easy to maintain.
Instant Pricing/Booking Instant and on-demand features will start claiming a bigger portion of the industry. Traditional shippers are starting to move towards a more connected and immediate electronic and digitized response to their spot and contracted business needs. Speed, reliability and just-in-time are needs that modern shippers have, which will make instant truck booking an essential technology.
Deep Neural Networks: beyond pricing and sourcing Loadsmart relies on machine learning processes and complex algorithms to allow instantly booking of a truck and to identify the best truck positioned to move each load after the booking the shipment. As more data becomes available and volume increases, deep neural networks will claim a bigger part of the success on the right pricing and sourcing computational-processes. But more importantly, these neuron-mimicking flows will also change repetitive human responsibilities to computer generated tasks (without the need for task-specific programming). Identifying potential issues before they actually happen – or are known – will be of great value in the logistics industry.
On November 15, the Loadsmart team, together with Eggs Design, attended the DOGA Award for Design and Architecture ceremony in Oslo following our win for interaction design. The celebration was a culmination of a close collaboration between technology and design from day one.
The Jury’s verdict: This solution has many positive aspects, not least in terms of the environment. By optimizing truck logistics, it becomes possible to distribute freight more efficiently, while at the same time minimizing the problem of empty trucks that pollute unnecessarily. This is a good example of how good interaction design can renew and streamline previously inefficient processes and act as a positive force for change. The interface is simple and intuitive, thorough, and solid and can also point to very good results in terms of both economy and efficiency.
We couldn’t be prouder. Creating a user experience from scratch, including brand and interface development, required excellence across many design disciplines. The award underscores our belief that great unity of design and technology is the path to introduce technology in well established industries. It enabled us to innovate and spearhead a logistics revolution. Optimizing for design improved product adoption, more efficient workflows and created user loyalty.
Today, Loadsmart offers instant rates for around 900,000 lanes and operates in the entire U.S. and is moving thousands of loads for companies like Anheuser-Busch, Safeway and Albertson’s.
From all of us at Loadsmart, we’re excited about the future!
Loadsmart is advancing its technology platform to automate how companies move shipments across the country by leveraging artificial intelligence. To move a full trailer of commodity across the country, instead of contacting traditional freight brokers via email or phone calls to arrange for trucking services, companies like Safeway can rely on an automated platform that provides the service with a one-click experience. Integrations may allow this one-click experience from customer’s own internal system.
Loadsmart is building an AI-powered system that automatically prices every shipment based on multiple sources of information (real time supply and demand of trucks and loads, weather, seasonality, warehouse hours, etc), so clients have on-demand access to trucking service with real time pricing. Loadsmart’s system then identifies the right transportation company – among a couple hundred thousands – to fulfill that service. In the future, with the adoption of autonomous trucks, every step of the chain will be connected, intelligent and automated.
Loadsmart is now looking into blockchain technology and how that fits the Loadsmart’s automated shipment cycle. Blockchain technology could bring more transparency to the over-the-road logistics ownership chain (producer – truck – warehouse), and introduce smart contracts to the freight brokerage industry. The first will allow anyone that is part of a product supply chain to trace a specific product source, when it exchanged hands and who was part of that exchange. The second leverages the reliability of blockchain technology to conduct automated payments between the parties, eliminating time-consuming document checks and manual information exchange.
We believe that most of the operational tasks of current freight brokers can be automated via AI engineering (pricing, carrier sourcing, truck geolocation), and the ones that rely on middlemen transaction balances and checks (ie payment to carriers contingent on a physical proof of delivery) could potentially be solved by blockchain.
Felipe Capella is co-founder and Chief Product Officer.