Celadon Trucking is a transportation company established in 1985 that operates over 3,800 tractors and 9,200 trailers across various transportation services. The presentation discusses Celadon's proactive approach to profitability through data-driven methods and systematic cost-effective planning. This includes analyzing lane-level profitability and identifying opportunities, as well as maintaining network stability through commitments to customers. Celadon aims to balance operational costs, driver satisfaction, and customer service through an automated planning system that dispatches loads.

1. Technology and
Transportation—Creating,
Deploying, and Benefiting
from Innovation
Matt Douglass
Director of Planning & Optimization
Celadon Trucking

2. Overview
• Market Analysis – Carrier Perspective
• Proactive Approach to Profitability
• Systematic Approach to Cost Effective Planning
• Commitments – Maintaining Network Stability

3. Celadon Trucking
Background Services
• Established in 1985
• Public: NYSE (CGI)
• HQ = Indianapolis, IN
• Approx. $800M Revenue
• Equipment:
– 3,800 tractors
– 9,200 trailers
– 300 temp-control trailers
• OTR (600+ mile LOH)
• Specialized Services:
• Expedited
• Local
• Dedicated
• Intermodal
• Brokerage Division
• Temperature Control
• Mexico/Canada

4. Market Analysis – Carrier
Perspective

5. Customer Questionnaire
0% 50% 100%
Have you noticed a shortage within
the last 6 months?
Do you think there is value in a
Core Carrier program?
Do you discuss the relationship
with your shipping partners?
Yes
No

6. Current State of the Industry
• Average Driver Age = 55
• Estimated Driver Shortage in
2014 = 125,000-250,000
• Driver Shortage by 2020 =
330,000
• Stagnant Fleet Growth
• Increased Equipment Costs
• ~ 3-7% Decrease in Utilization

7. Proactive Approach to
Profitability

8. Proactive Approach to Profitability
• Traditional Methods – Rate and Volume
• Non-traditional Methods – Multiple Solutions
– Rail and brokerage
• Data Driven Methods – Profit Analyzer
– Identifying lanes that are profitable not only for the current move but
where will you go in the future

9. Proactive Approach to Profitability
• Historical Analysis – Profit Analyzer
– Identifying lane level Operating ratio
– Identifying lane level Opportunity cost

10. Celadon’s Customer Scorecard
Metrics
1. Profitability
2. Fuel Surcharge
3. Accounts Receivable
4. EDI Capability
5. Transit
6. Empty Miles
7. Drop & Hook
8. 24/7 Access
Uses
• Feeds Freight Selection Tool
• Drives Pricing Decisions
• Identifies Growth/Partner
Accounts

11. Systematic Approach to
Cost Effective Planning

12. Systematic Approach to Cost
Effective Planning
• Weighted calculation to cover all freight in the network
every couple of minutes
– Over 150 tables are hit with every potential combination
• Balancing operational costs, driver happiness and service
• Ability to Autoplan trucks on loads based on “Home Run”
Scenario – Currently around 10% of dispatches
• Model accounts for 70% of all plans

13. Systematic Approach to Cost
Effective Planning
• Universal program for customer service, driver
management, planning and tracking
– Allows for a collaborative effort to service the customer and the
driver

14. Commitments –
Maintaining Network
Stability

15. Commitments – Maintaining
Network Stability
• Commitments are king
– Annual, monthly, weekly, daily, project based
– Point to point, zip to zip, region to region or any combination
• Balanced total network allows for proper flow of capacity
and utilization of resources

16. Commitments – Maintaining
Network Stability
• Network Balance
– Clear view of what is being recommended to balance each individual
region as they interact with each other
– The map constantly updates with new data (~1-2 minute cycle times)
– LA takes into
consideration the
most profitable
decisions that can be
made with
commitments and
historical volume

17. Commitments – Maintaining
Network Stability
• Load Solicitation • Chosen based on need –
What will balance the
network while generating
the most profit?
• Need also determined by:
– Existing Commitments
– Profitability
– Tractor capacity
– Weekly historical volumes
– Regional values

18. Commitments – Maintaining
Network Stability
• Capacity shifts
– Excess tractor capacity in a region that is near an overbooked
market will lead to shift recommendations
– Pre-emptive recommendations to communicate network balance
needs
– Assists with planning when determining what to do with additional
capacity or when trying to plan for a region that will be overbooked
the next day

19. Matt Douglass
Director of Planning & Optimization
Celadon Trucking
MDouglass@celadontrucking.com
9503 E 33rd Street
Indianapolis, IN 46235
317.972.7000 x22047

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