00:01Welcome to Deploying the New ArcLogistics for Your Fleet Operation.

00:04I'm Rich Pearlman; I'm the business development manager for logistics for Esri...

00:09...and presenting with me today is Greg Wietholter from Route Solutions.

00:16Today, we're going to cover a variety of topics.

00:18I do want to note that this is the first of two consecutive sessions on ArcLogistics, both very informative.

00:25Encourage you to please participate in both sessions.

00:30Today I'm going to give you a brief introduction to ArcLogistics with ArcGIS Online services.

00:37We'll talk about fleet deployments for the new ArcGIS and talk about the kinds of fleets and sizes of fleets it's very suitable for.

00:46I'll give you a demo of the new ArcLogistics solution at somewhat of a higher level.

00:53We'll talk about some of the navigation options that are usable with ArcLogistics.

00:58From the deployments we've been going through with the new ArcLogistics over the last few months...

01:03...some common questions come up. I'll talk about that.

01:06We'll talk about ArcLogistics business partners/resellers, what they do.

01:11And if you're a business partner and interested in reselling ArcLogistics, what that program would look like for you.

01:20Greg will talk about his company, which is a business partner and a very active ArcLogistics reseller...

01:26...Route Solutions, what they do and a very interesting case study.

01:30We'll end up with some Q&A, give you a preview of the next session and what we're going to cover there, and go from there.

01:39First off, let's talk about ArcLogistics. I'm going to get a...ask a couple of questions and get a show of hands.

01:47How many are familiar with ArcLogistics either in the new form or in the desktop form? Great.

01:55Who's an ArcLogistics user? Okay.

02:00Have any questions, the gentleman in the back will answer the questions; please don't come to me. Great.

02:05So then most of us know what ArcLogistics is, but it's an Esri solution...

02:12...and it's a little unusual for Esri in that it's a solution targeted at the end user.

02:18It's not a building block, it's not a piece of technology; it's an end-user focused application.

02:25And it's all about getting the right products, the right services, or the right people...

02:30...to the right place at the right time while minimizing your costs in doing that.

02:35There are a variety of other solutions out there that will help you optimize your deliveries and optimize the assignment of your vehicles...

02:44...excuse me, the assignment of your stops to vehicles, ordering the stops, generating routes.

02:49ArcLogistics is very powerful in that it allows you to incorporate your rules of operating your business...

02:57...and your requirements for operating your business and even your basic knowledge.

03:01So when you get an end result out of ArcLogistics, if you need to tune that and optimize that a little more...

03:04What I am going to talk about, a default route, 'cause a default route is a combination of the driver...

03:06...knowing what you know, it allows you to do that.

03:10That's great. Thank you very much.

03:14So what problems are we solving with ArcLogistics?

03:16And it's really up there in the pictures on the left-hand side of the screen.

03:22When fleet managers and dispatchers take a large pool of stops, a pool of vehicles...

03:27...and have to decide what stops would go to what vehicles...

03:28We've assigned the day of the week for each vehicle; it's very easy to go ahead and change that.

03:31...how do they route those vehicles, it can be a very frustrating and labor- and man-intensive process.

03:39It's frequently multiple people sitting around a map on a bulletin board pushing in pins...

03:44...taking string and yarn and trying to join things together.

03:49It's not easy; it consumes a lot of time, and the results are generally...

03:54...even though you may know a lot about your business, fairly inefficient.

03:58As I mentioned before, there are existing automated solutions (in quotes), for helping you optimize your fleet.

04:07For the most part, they're very expensive, especially compared to the new ArcLogistics delivered online...

04:13...and they're not easy to use. They're very complicated to use.

04:19So what are the benefits of using ArcLogistics? It's very straightforward.

04:23First and foremost, the significant reduction in your fleet-related expenses.

04:28If you're optimizing how you implement your routes and how you develop your routes, you're going to drive less miles.

04:37If you're driving less miles, you're potentially using fewer vehicles.

04:41It's less manpower, so it's less salary, it's less overtime, it's less overtime pay, it's reduced fuel costs.

04:49It can be lower capital expense; if you don't need as many vehicles, you don't need to buy or maintain as many vehicles.

04:56And you can certainly spend a lot less time in front of that map with the pushpins.

05:02Very efficient solution in terms of using the time of your route planners or your dispatchers.

05:08It helps you improve productivity. Productivity is very important.

05:12In a down economy such as we've witnessed around most of the world over the last few years...

05:19...people are faced with doing the same amount of work, or even more work, with fewer resources.

05:25Optimizing your route using a tool like ArcLogistics goes a long way in helping increase your productivity.

05:31You can go green.

05:33Many entities, especially in the state and local government market, are concerned about reducing their carbon footprint.

05:40With ArcLogistics, again, fewer miles driven, less fuel burned, less carbon emitted into the atmosphere.

05:47I know that's something that's important to many people.

05:51There's even in ArcLogistics, the new ArcLogistics comes with a CO2, carbon emissions, calculator to help you quantify that.

06:00ArcLogistics is a good tool for modeling your operation as well.

06:03Not only are the results very effective for optimizing how you do things...

06:07...it's a great tool for running different scenarios on how to allocate your vehicles, how to allocate your resources.

06:15With improvements in productivity also come improvements in customer service. You can run tighter time windows.

06:22You can do a better job of telling your customers...

06:25...when you will be at their stop in order to meet their time requirements as well as yours.

06:32If you can be on time more often, you can certainly enhance the reputation of your company.

06:39Increased customer satisfaction is good for business.

06:44So let's talk a little about ArcLogistics using ArcGIS Online.

06:49So far, and I talk about this a little at the Logistics SIG at lunchtime...

06:54...the most common question about the new ArcLogistics is What do I call it?

07:00So is it ArcLogistics? Is it ArcLogistics Using ArcGIS Online Services? Is it ArcLogistics Online?

07:09And the answer to that question is yes. It's all of those, and it's frequently referred to as any one of those names.

07:18What it's not, in terms of a name, it's not ArcLogistics 9.4. It's not ArcLogistics 9.3.3. It's not ArcLogistics 10.

07:29It's simply ArcLogistics or ArcLogistics with some association of online or with ArcGIS Online services.

07:38Our first deployment of the new online delivery of ArcLogistics today is available in the USA, in the USA only.

07:47We rely on several services from ArcGIS Online, which is currently available only in the U.S.

07:57We are looking at expanding internationally, and it's based on two different main factors that will drive that.

08:05First off is the availability of more international coverage in ArcGIS Online, which is in process...

08:11...and then also putting the business models in place to support the international deployments...

08:16...in terms of handling subscription payments, tax issues, revenue shares, those kinds of things.

08:24The cloud implementation of ArcGIS does support the traditional ArcLogistics workflows.

08:31So if you're familiar with the vehicle routing problem, or VRP, workflows that have come out of the desktop ArcLogistics...

08:41...out of [ArcGIS] Network Analyst, fully supported, but supported in a Software plus Services application.

08:48And I have a diagram on the next slide I'll talk to about that.

08:52But essentially what it means is that Esri is managing the data and the software and the services.

09:00You don't need to worry about that. The heavy lifting, the intensive processing is also supported by Esri.

09:08Finally, in terms of the business model, the new ArcLogistics Online uses a very new business model.

09:14Traditionally, ArcLogistics on the desktop had been licensed in a traditional software model.

09:20You pay an initial license fee for the application and the data, and then you have optional annual maintenance.

09:27If you don't subscribe to the maintenance, you still have the software, but as the software and the data go further out of date...

09:34...that can be an issue, especially for someone doing routing.

09:37The new online application is offered as an annual subscription. And there's a big advantage to that.

09:46As there's new updates to the map data and there's updates to the software, you receive those automatically.

09:53You do not have to worry about managing any of that.

09:56And I will talk about the pricing model in a few slides.

10:00So what does it look like? What does a Software plus Services in the cloud implementation of ArcLogistics look like?

10:07So over here on the left-hand side of the screen is the user desktop...

10:12...and on the user desktop there is a small 11-megabyte download for the ArcLogistics client, and what that...

10:21And I'll show you this in detail.

10:22What that client allows you to do, it's the user interface; it allows you as the user to manage your data.

10:31With the new online implementation of ArcLogistics, the data, the customer data, sits on the customer desktop.

10:38Esri does not host that data.

10:42It goes out through the cloud, communicates with ArcGIS Online using online services hosted by Esri...

10:50Pardon me. A little tight up here for my... There we go.

10:54...to support routing, the geocoding, and mapping. And all that is handled by Esri.

11:03And then you have the option for communicating your routes that are generated by ArcLogistics...

11:08...out to mobile users using navigation devices, primarily the ArcLogistics Navigator.

11:16The new features, obviously it's an online, hosted service.

11:21There's a much more straightforward-to-use, workflow-based user interface, and I'll show you that.

11:30As I mentioned before, automated software updates, automated database updates.

11:35As a user of the new ArcLogistics, the only thing you have to worry about is loading it on your desktop...

11:41...managing your own user data.

11:44All the heavy-duty lifting for processing, managing the map data, upgrading the application...

11:48...everything's done out in the cloud and managed by Esri.

11:53There are multiple options for interchanging data with other systems, whether it's out of spreadsheet files...

12:01...a variety of file formats, a plug-in for Microsoft QuickBooks, or a direct OLE database connection.

12:09And I'll show you a little about using an Excel spreadsheet in a bit.

12:15As I mentioned, it has an inexpensive annual subscription; we have a monthly payment option, which I'll show you.

12:22And again, our big selling point with ArcLogistics is save money now.

12:27With a desktop implementation, our target for an ROI for our users, their return on investment...

12:34...meaning when they get their investment in ArcLogistics back in terms of cost savings, was around a hundred days.

12:41Our target with the new desktop...excuse me, with the new online version of ArcLogistics is 10 days.

12:47And it's so much shorter because it's driven by, one, a lower annual cost for the solution...

12:52...and, two, you should have to invest much less time in terms of getting it set up, in getting it configured.

13:01In terms of the pricing, you can see right now we're offering four subscription ranges.

13:08Up to 5 vehicles, up to 10 vehicles, up to 20 vehicles, and up to 50 vehicles.

13:14And there's an annual subscription payment of a thousand, 2,000, 35 hundred, or 45 hundred dollars.

13:22There's also an option for a monthly payment. The monthly payment's there 'cause experiences have shown us...

13:30...out in the fleet management and the fleet telematics market, many fleet users...

13:34...whether it's a small private fleet or large enterprise fleets, are used to licensing some of these services on a monthly basis.

13:42So those are the pricing options there. You will notice on the monthly payment...

13:45...there is a little bit of an increase for the monthly charge, but it's only about a 20 percent on an annual basis.

13:54[Inaudible audience question]

13:56Yes?

13:57[Audience question] If you work over 200 or something like that, is there a [inaudible] discount on an annual basis?

14:02If you go over...200 subscriptions or 200 vehicles?

14:05[Audience question] 200 vehicles.

14:08Right now, the way it's set up, and I was going to talk about this a little later. That's up to 50 vehicles per solution.

14:16If you have 200 vehicles, and you want to route all 200 at once using one...

14:22...solving one problem, the online solution won't support that right now.

14:26You use the desktop solution.

14:28If you have 200 vehicles spread over four or five or six locations, you could license multiple subscriptions...

14:36...multiple subscriptions, one for each facility.

14:40And in terms of volume pricing, we haven't crossed that bridge yet.

14:44It really would depend how many subscriptions you're going to buy.

14:49[Audience question] Okay, thank you.

14:53Let's talk about some of the fleets and the deployment models that are very suitable and that we're seeing...

15:01...going into place for the new ArcLogistics delivered online. First off, local governments.

15:07And local governments historically have made up the largest single component of ArcLogistics sales...

15:13...whether online or the desktop over the last 10 years.

15:17And we see it frequently for inspectors, whether it's a variety of inspectors, building inspectors...

15:25...air quality, wastewater, et cetera. Public works maintenance and repair.

15:31We see ArcLogistics used for the routing of repair and maintenance crews for local governments all over the United States.

15:40And finally, waste collection.

15:42When I talk about waste collection, I'm not talking about door-to-door, high-density routing for trash collection.

15:51I'm talking about doing things like bulk pickup, container pickup, roll-on/roll-off, that type of thing.

15:57Ian?

15:58[Audience question] What about medium and large utilities [inaudible]?

16:01Medium and large utilities. So for the main initial focus for ArcLogistics Online...

16:08...because of the limit of 50 vehicles per solve, we're really initially targeting it at small utilities.

16:16For a medium or a large utility that would be interested in using the online solution and using...

16:21...and implementing multiple subscriptions over a variety of facilities or subscriptions for different parts of their fleets...

16:30...we certainly can support that.

16:33And in small utilities, a very similar type of thing.

16:36Again, you wouldn't see ArcLogistics use for meter reading where you have someone going up and down every block...

16:43...and hitting every street, every house on every block on every street.

16:47But certainly for turnoff, turn on, maintenance calls, inspection, service dispatch, that kind of thing.

16:55We've also seen, although it's not a utility, we've seen a fair amount of uptake of ArcLogistics in...

17:02...dispatch for installation and service of satellite TV.

17:08Next up, commercial markets. And ArcLogistics has been historically used in a variety of commercial markets.

17:16Maybe the biggest is beverage delivery.

17:19And certainly beverage delivery, especially beer...

17:23...is a topic that the ArcLogistics development and program management team takes very seriously.

17:31But at issues, we do have a partner in the beer distribution business in the U.S. that's very big in that market.

17:37Retail delivery, whether it's food; furniture; consumer electronics; store replenishment; vending machines...

17:47...dairies; HVAC, meaning heating, ventilation, and air conditioning, both commercial and residential...

17:56...as well as pest control; waste management, again, not residential trash collection...

18:02...but picking up of Dumpsters, bins, roll-off commercial trash collection.

18:08In the insurance market, claims adjusters and also in sales.

18:13And particularly for insurance and sales, you'll be hearing later about the next releases of ArcLogistics.

18:19There's two more hopefully coming this year.

18:22We'll be releasing a single-user subscription for ArcLogistics...

18:28...and that's something that will be able to be deployed on a wide-scale basis within an organization.

18:33So if you took a company like a pharmaceutical company that wanted to supply their individual salespeople...

18:40...who work independently so they could each...they each would be able to route themselves.

18:45They know where they need to go; they want to optimize the stop order; they may want to work within time windows.

18:50They'd be able to license that on an enterprise basis and deploy it for each of their people out in the field.

18:58Finally, another large growing market, and this is probably the biggest single segment for the new online version so far...

19:05...is home health care. And home health care works in a variety of applications.

19:12Clinician routing, whether it's a physician, whether it's a nurse or some other kind of technician; medication delivery...

19:20...home medical equipment delivery; and home medical equipment service.

19:25You saw on the Plenary Session yesterday there was a demo showing some home medical equipment delivery...

19:31...and I'm going to talk a little more about that and show you that demo in a little more detail.

19:38But in the home medical business is a classic example of small fleets.

19:43It's frequently private entrepreneurs or small companies with fleets of 5 or 10 vehicles.

19:50It's a great application for the online service.

19:55So let's talk about a home medical equipment scenario. I'll do a demonstration with that.

20:01And the company I'm going to talk about is Shalem Medical...

20:06...and they're a home medical equipment supply company in the Dallas, Texas, area.

20:11They were a beta user and the first licensee of the new ArcLogistics online solution.

20:18Shalem has five Sprinter vans, kind of a high cube, single-axle van.

20:25Each van can make up to 18 stops per day; the average stop is 15 minutes for delivering home medical equipment.

20:35Like I said, the average stop is 15 minutes.

20:37If they're delivering a bed, like a hospital-type bed for residential application, that's a 30-minute delivery.

20:45They allow a total travel duration, or total time traveling, of 10 hours during the course of the day.

20:53Total distance traveled per vehicle of 300 miles.

20:56Their drivers arrive at Shalem's offices by nine a.m. in the morning, and they have to be out on the road by nine-thirty a.m.

21:04And then they return back to the office between six and six-thirty p.m. at the end of the day.

21:12So with that, I'll go ahead and bring up the user interface, the client for the new ArcLogistics.

21:21And you'll notice it looks very different if you're used to seeing the desktop version of ArcLogistics.

21:29A couple of notes before I continue with the demo.

21:32You can also see this in more detail on the Commercial Solution Island in the...downstairs in the Exhibit Hall.

21:40I'm doing kind of a high-level introduction. The next session following this one will be a much more detailed...

21:47...how do I download the application, how do I set it up, and how do I configure it. And that'll be at three-fifteen.

21:52But for the purpose of this demonstration, we're going to talk about a home medical equipment delivery scenario.

21:57I've already set everything up and run the project.

22:01A quick overview. You now see it's a tab user interface.

22:04So you work your way across the workflow going from left to right by clicking on the individual tabs.

22:12And then within a tab, there's action buttons down each side.

22:16It also gives you an idea of all the information and resources that are available online.

22:22There's a variety of video tutorials; there's eight video tutorials online.

22:27There's a resource center. Here's a quick look at the resource center.

22:31There's a forum online, there's a blog online. There's some great places to get information for you.

22:37Now, similar to the desktop version of ArcLogistics, you start by defining a project.

22:44And in this case, I defined a project for a medical example, home medical equipment delivery for the User Conference here.

22:52I did talk about beverage delivery earlier. Hangar 24 is a microbrewer in Redlands that is a user of ArcLogistics.

23:00And all the Esri people are nodding their head and going, "Yeah, that's a very good user."

23:05So but we're going to work within the Shalem Medical example.

23:10Now I've clicked to the Setup tab, and there's a series of actions that we have to go through down on the left-hand side.

23:16And I'll hit some of the highlights.

23:18You notice fuel types, and you can define fuel types as gas or diesel, and this goes to one defining the cost for each...

23:26...and how that would affect the optimization calculation for ArcLogistics, as well as you'll see the CO2 emission.

23:34So if you're worried about carbon footprints, it'll estimate that as well. Yes?

23:38[Audience question] Will you add other motive forces there? Electric's getting to be pretty common in urban areas.

23:43[Audience participation] You can actually add your own.

23:44[Audience question] Can you? Yes. Yeah, you can see it's right against the speaker and [unintelligible].

23:50Right there. So it's behind the speaker, sorry.

23:52Oh, it's behind the speaker, okay. Okay, if you see here, it would be right up there, right above these, you could click on that.

24:05After that, you would define a location. And a location is a place where your vehicles will start or end their day.

24:12And in this case, it's the Shalem Medical's office in Mesquite, Texas.

24:16We click on it, and you can see we're using the mapping services off of ArcGIS Online.

24:21And you can both see a traditional street map; you can also see a satellite version of the map as well.

24:28Now if you've ever done routing out of large warehouses, frequently a large warehouse has its legal address...

24:36...which will geocode very well, but the loading docks may be on the other side of the building.

24:41And what you can now do is you could, if needed to be, you could grab the location for the warehouse if you needed it...

24:48...if you needed to move it to another street where the loading docks are on another side of the building, you could do that.

24:54It's important, if you're generating driving directions for your drivers, and the first two maneuvers are wrong...

25:00...'cause it's on the wrong street, the driver's going to take those directions, put them in a ball, and throw them in the back of the truck.

25:05So you certainly want to be able to have your drivers satisfied with their directions and their navigation...

25:10...'cause it's going to go a long way towards ensuring that they stay on their routes.

25:15Very straightforward information about your location, the address, the time window for when it's open, a curb approach.

25:26And curb approach is important for loading or unloading because if you have a door on the side of a trailer...

25:33...you don't want to unload your vehicle out into traffic.

25:36And then you'll see the match method for both your locations as well as your stops.

25:42You can input location by address or by x,y coordinate.

25:48Next up, we'll talk about vehicles. And for the online version of ArcLogistics, we've separated vehicles from drivers.

25:56So you can set, you can configure each uniquely. In the desktop version, they were one and the same.

26:02And you can see for Shalem, they have five vans, and they also have access to a rental van.

26:11And the rental van's there in case one of their five vehicles breaks down or needs to be serviced.

26:17I'm not working in terms of capacities for the vehicles.

26:21Each vehicle has some costs associated. Maybe not for Shalem's vehicle, but the rental vehicle's going to cost $109 a day to use.

26:29It's also going to burn gas instead of diesel and gets 9 miles to the gallon instead of 12. Yeah.

26:37[Audience question] If you have the two vehicles with different capacity and, like they're five and five...

26:44...and you want to run analysis, will you choose the vehicle with the less capacity if it's possible? I mean...

26:55Yeah, it will manage the capacities.

26:58[Audience question] On the desktop right now, if you have two sets of different vehicles, I don't know...

27:05...it doesn't do the thing [unintelligible] for both of them. I'm...

27:10[Product team question] I think that that's specialties you're talking about?

27:12[Audience question] No, not specialties.

27:13[Product team participation] Oh, not specialties.

27:15I'll defer to the product team on that one. I'm not sure. It would manage...

27:22You're asking whether it'll pick the vehicle that has the...

27:26[Audience question] Less capacity or that costs less than the other, the overall cost.

27:31[Product team participation] Your [unintelligible] algorithm is designed so that it picks the lowest overall cost.

27:36And it'll pick the vehicle [inaudible] overall lowest cost.

27:43So you may have a larger vehicle in terms of capacity or maybe it gets more miles to the gallon [inaudible].

27:50If you have a smaller vehicle and it's got enough capacity, it's [unintelligible] miles per gallon, it'll pick that one.

27:57[Audience question] I'm not talking about this, but we tried it with students...

28:03...and like you have a cab and a mini bus, it didn't do the...

28:08[Product team participation] [Inaudible] alone may not, but if you have a lower cost per mile or a lower overall cost...

28:12...then it's designed to choose that one.

28:16Okay, great. Good question. And then finally, on specialties, we're delivering home medical equipment.

28:22And we see that the Shalem vehicles have custom racks installed in them in order to hold oxygen bottles...

28:29...so if they're going to deliver oxygen bottles to homes, you need a vehicle that's equipped to do that.

28:35And then finally, we've set one vehicle up that it has a navigation device in it that we can send the route to...

28:42...and I'll continue to show that to you.

28:45Next up, drivers. And we've set up we have six drivers to choose from among for each of the vehicles.

28:56We've set the drivers' names; a fixed cost for the driver if that's applicable; a per-hour salary for each driver...

29:04...and we can see that Jeff is the highest paid driver; and then per-hour-of-overtime salary.

29:12And then I also have a specialty assigned for the driver, and you notice Jeff's specialty is Jeff.

29:17Well, Jeff's been with Shalem Medical for a very long time.

29:21We have certain patients or customers who like to see Jeff, and they stick with our business 'cause they like Jeff...

29:28...and they want Jeff to come to their house and visit them when they get their home medical equipment.

29:33So this allows us to assign Jeff and ensure that Jeff is assigned to those individual customers that will have Jeff as a specialty.

29:43We can set, assign, a mobile device to a person instead of to a vehicle if we want.

29:50And set the time before overtime kicks in, all towards the cost calculation.

29:55So we've set up the drivers. You can also set up mobile devices, specialties, zones, barriers.

30:02In the interest of time, I won't go through that.

30:09...the vehicle, and what they're going to do during the course of the day.

30:13So here we have five routes assigned, and we can see in one of the routes, we've lost vehicle...

30:20...Sprinter 1 is broken today and we've had to go ahead and assign a rental vehicle for Burt to drive on route 1.

30:33If you didn't want him to work on Sunday, you could do that and save that.

30:39A color for each route for the mapping.

30:42Remember, they start at nine a.m., which means they have to be there and leave the office at nine a.m.

30:49That should really be nine to nine-thirty.

30:51We can set their lunch break, how long it is and the time window for when it starts.

30:56They all start at Shalem Medical's location.

31:00Remember we said they start at nine, but they need up to 30 minutes in the beginning to load their truck.

31:05They all end at Shalem Medical.

31:08One thing to note about the new ArcLogistics, you can define different start and end locations for each route.

31:18Frequently in the U.S. in the home repair business, repair guys, they don't work out of an office.

31:22They work out of their house; the parts they need get shipped to the house...

31:26...so they all start and end their day at their particular home.

31:29So you can configure it that way.

31:31How much time they need at the end of the day; in this case, 10 minutes.

31:35Maximum number of orders. Remember, maximum travel distance is limited to 300 miles.

31:40Maximum travel duration is 10 hours. Very straightforward.

31:47So the only thing that we're missing now is the stop information.

31:51So where do these drivers have to go during the course of the day.

31:54And we actually get that out of an Excel spreadsheet where Shalem maintains their stop information.

32:03Moves it from their customer order system into an Excel format so it can easily be input into ArcLogistics.

32:10So Shalem actually supplied us with real user data.

32:14So the demo you saw yesterday from Matt and this demo is using real data from Shalem Medical...

32:19...so what I did is I eliminated the last names, 'cause we don't want to talk about patient names...

32:24...and then I mixed up the sorting of the patient names so no one's names match their address.

32:30So it talks about the log number, or the record number; the patient's name; the address for the patient...

32:37...and then this, it was city, state, and ZIP...

32:43...what kind of equipment is being dropped off for each patient; the estimated service time.

32:49And you see where the oxygen bottles are, we've set the vehicle specialty, 'cause you have to...

32:54...to get the oxygen, it's got to come in a vehicle that has the racks to hold the oxygen bottles.

33:00Driver specialty. Those patients that have been with us a long time and like to see Jeff come visit them...

33:06...when he leaves off their medical equipment, that's set.

33:08And some of the patients have time windows, so the delivery needs to be made when they're available...

33:14...or there's someone there to assist them when the delivery's made. So there's very specific...

33:19In this particular patient up at the top, the delivery has to be between ten a.m. and eleven-thirty a.m. A very specific case.

33:29So we'll go back to the application. We would go ahead and import the data.

33:34Carl and Jeff will be showing you how to do that in the next demo.

33:37So for this demo, and in the interest of time, I've already imported all the data and I've solved the problem.

33:44And when you see in the schedule in ArcLogistics, it gives you three views; a time view, a list view, and a map view.

33:52You can turn those off. We'll turn off the map view and the time view for the moment. We'll look at the list view.

34:00First we'll take a look at route 4. And Jeff is the driver of route 4...

34:08...and you can see all the stop information corresponds to everything we talked about.

34:12Service time; time windows; any specialties, vehicle specialties for the oxygen bottles and Jeff's specialties...

34:21...so the right driver shows up to the right customer at the right time.

34:26And then if there are any, the order numbers and description of what's being dropped off there. Very straightforward.

34:33We also took a look at route 1.

34:37And if I guessed correctly, route 1 is the route where the van was broken down and we had to use a rental vehicle.

34:44And because we had a rental vehicle and the rental vehicle didn't have any oxygen racks in it...

34:49...you can see no stops that had any specialties associated.

34:53Burt's the driver, so Jeff's not going to show up as a specialty, or any oxygen specialties were assigned to that van.

35:01Very, very straightforward.

35:03Some of the other views, and Carl and Jeff will go in this in more detail, there's a map view...

35:08...and the map view, again, uses the mapping services from ArcGIS Online.

35:13You can look at the street view if you want to do that.

35:16If you want to turn certain routes off, you can go ahead to Routes, you can turn off route 1 if you don't want it to show up...

35:22...and you'll see that it'll go ahead and turn off.

35:25We could turn off the list view, turn on the time view, and you can see the different stops in the time view.

35:34If you want to see an individual stop, you can just click on it...

35:38...and the mapping service will go ahead and zoom in to that stop and the location of that stop.

35:44I'll turn off the map view so we can get a full look at the time view.

35:48You get the gray locations are where the vehicles start or end their day or where they break for lunch.

35:56The thin lines are transit times between stops and the thicker boxes are the individual stops and the information about that stop.

36:05So you've gone ahead... Yes?

36:08[Audience question] Rich, a really interesting high-level question. Can the service time be a function of the service locations...

36:15...meaning is it a single-family dwelling a driver can drive to or it's a high-rise apartment complex with parking...

36:23...it's not going to be the same service time. Is it smart enough to be able to handle that kind of specialty?

36:28That would have to be preprocessed before the data came in.

36:31So if you know whether it's going to an apartment versus single-family home...

36:36... and you wanted to apply that to the data before it went in.

36:39[Audience question] So you're not proposing the geocoding; get another database and tell me what that is for those apartments.

36:45No. Not in this online application. But we now have another requirement for the product team.

36:53And then the time and then the individual stops.

36:56So now we've got the stops, or the routes are built, stops are assigned, they're in the optimized order, you can route.

37:02The question is, How do I get that route out to my driver? Quick question.

37:08[Audience question] Can you correlate a route that starts from where another route stops?

37:23The application won't do that unless I'm missing something.

37:25[Product team participation] You mean like multiday routes?

37:28[Audience question] Let's say for example I have a route from before that goes [unintelligible]...

37:35...and it drops some packages at a certain point, and many other trucks come to that point and they have their own routes.

37:48Can you correlate those main routes to one route?

37:53Kind of a...

37:56[Product team participation] Depot or warehouse.

37:57No, it doesn't do that.

37:59[Inaudible product team participation]

38:03Right, yeah. That's a good point. If it's a preplanned location, like you know the trucks all have to stop there anyway...

38:11...'cause that's where everything comes in for a break in bulk, it can do that, but you'd have to tell it, it needs to go there.

38:17It's not going to make the decision. It's not going to know that a truck has stopped there...

38:22...unloaded a lot of boxes for the next...for another set of locations and then start the routes there.

38:29Okay. So let's talk about deploying our routes.

38:33And if you're familiar with ArcLogistics, you're familiar with the different paper reports that it does...

38:39...the summaries, the driving directions, and things that it will generate.

38:44So what I'm going to show you is generating a route out to the navigator, to the ArcLogistics Navigator.

38:50So it's very simple. You saw I set up a vehicle earlier in the demo with the [ArcLogistics] Navigator associated to it.

38:58And you can just go ahead and we can see that I have route 4 set up to receive a navigation route.

39:06So basically what this is, it's ArcLogistics taking the whole optimized routes, the individual stops in optimized order...

39:13...all the instructions for routing in between those stops, packages it up. Go ahead and hit Send Routes.

39:20It'll send it out to the [ArcLogistics] Navigator...

39:23...and the [ArcLogistics] Navigator is constantly looking to see whether there's been a new route sent to it or not.

39:28It says you have a new trip plan; do you want to load it.

39:30You say yes, and it loads the trip plan into the [ArcLogistics] Navigator.

39:35And the [ArcLogistics] Navigator is now routing against the preplanned route and the optimized route.

39:42If the driver goes off his route, he wants to stop and get a cup of coffee in the morning...

39:46...it's going to route him back onto his optimized route.

39:50It's a great tool for route compliance. I know Carl and Jeff are going to talk about that a little further.

39:56The one other thing I did want to show you is when you look at the stop information in the [ArcLogistics] Navigator...

40:01...there's all the stops, the name of the different patients in the optimized order...

40:07...and you can click on one and you have all the stop information.

40:12Any time; what's being delivered here...

40:14We're delivering nonslip socks to this particular customer, so you know what needs to be dropped off there.

40:20...their address; if there's a time window, it'll show up there.

40:23If there's a specialty, like Jeff needs to show up there, it will do that as well.

40:29The navigator, the ArcLogistics Navigator, is an Esri navigation software application that's available with ArcLogistics...

40:39...and designed to work very closely with ArcLogistics and send the routes.

40:45So with that, I'm actually going to return back to our presentation and just talk briefly about the [ArcLogistics] Navigator.

40:59One point I did miss in terms of getting optimized stops and paths from the [ArcLogistics] Navigator, from ArcLogistics.

41:06ArcLogistics in the back office also allows you to set specialties or routing restrictions for trucks...

41:14...weight restrictions, length of trailer, that type of thing.

41:17When you set those in ArcLogistics Online, send the route to the [ArcLogistics] Navigator...

41:22...it automatically configures those in the [ArcLogistics] Navigator. You don't have to rely on the driver to do that.

41:28So it's a nice safety enhancement.

41:31We do have other navigation implementation options.

41:37Esri ArcLogistics Navigator comes from Esri into our distributors.

41:43We also have business partners that can integrate with either the TomTom WORK solution...

41:50...or the Garmin fleet management interface.

41:53Greg's here from Route Solutions. He's going to talk about an implementation he worked on with TomTom WORK.

42:00GeoDecisions is another partner of ours that's interfaced ArcLogistics with the Garmin system.

42:08Before I turn things over to Greg, I do want to talk about some of the common questions we get...

42:14...from prospective users and trialers of the new ArcLogistics solution.

42:18Remember, most of these are small private fleet operators. They may have less than five vehicles.

42:24These aren't transportation people, these aren't technology people.

42:28They're running some other business and operating a fleet of vehicles as part of that business.

42:33So we frequently get, What is the cloud?

42:35And when we just basically explain that is, it's the Internet...

42:38...you're using available computing resources from Esri and connecting through to that through the Internet...

42:45...they generally understand that.

42:47We ask, what if I'm an ArcLogistics Desktop user. Well, it depends on your use case.

42:52If you need to route more than 50 vehicles for a single routing problem, you're going to want to stick with the desktop product.

42:59If you are doing paratransit applications in ordered pairs...or paired orders, excuse me...

43:07...you're going to want to stick with the desktop application.

43:10If you are a desktop user and you're interested in the new solution, the online solution, and you're current on maintenance...

43:18...you can switch. Because you're on maintenance, you can move to the new solution.

43:23When your maintenance expires, you can continue on with the annual subscription.

43:27We still have many users of ArcLogistics that are using ArcLogistics 3.x, and they have...

43:33And they're either here in the U.S. or internationally.

43:36They may be long out of maintenance, and they really want to get updated map data.

43:40Well, we don't publish map data for ArcLogistics 3.x anymore.

43:44They can very cost-effectively transition over to the online solution by buying a new online subscription.

43:51It'll probably be cheaper than coming current on maintenance.

43:54It's certainly less expensive than the desktop product if you don't need it.

43:59Can I use my own data? So we hear that a lot from local governments and other entities that have built their own map databases.

44:06With the online solution, you need to route on the road network hosted by ArcGIS Online.

44:13You cannot use your own routable network. If that's a requirement, you need to use the desktop solution.

44:19But as we talk to people, it frequently comes down to, well, I don't need to route on my own network...

44:25...but I've geocoded my own stops.

44:27Now I've got 2,000 places I need to visit during the course of the week...

44:31...and I've got better geocoding for them, 'cause I know exactly where they are.

44:35Well, with the new online implementation of ArcLogistics, you can do that.

44:39When you input your stops, you can do it by address or you can do it by x,y coordinate.

44:45If you do both, it'll default to the x,y coordinate.

44:48So if somebody has accurately geocoded stops, the more accurately geocoded stops...

44:52...they can use it with the online delivery of ArcLogistics.

44:56[Audience question] Are you going to support the other data than yours?

45:02Right now...

45:03[Audience question] My country is not covered with the [unintelligible].

45:04Well, our plan is to expand our coverage in ArcGIS Online, bring in more international coverage.

45:11[Unintelligible audience question]

45:15Can I assign specific stops to specific resources?

45:19[Product team participation] Maybe I can help address that. If you have a need in your country for using ArcLogistics...

45:23...you should talk with Carl and Rich, and we can work on a long-term plan for making available services in that country.

45:32Working with you to, if you have street data for that country, to help put it online so [inaudible] services [inaudible]...

45:39...to your own users [inaudible].

45:43[Audience question] Just curious. There was a great comment in the Plenary Session yesterday with all the Community templates.

45:49There's no thought whether the template for the road system, publicize it...

45:53...so users could put road data in. 'Cause we will always be [simultaneous conversations].

45:58[Product team participation] So one thing that we're looking at long term is the ability to host the underlying...

46:03...vehicle routing problem service, the VRP service, as a component of ArcGIS.com.

46:09You could actually publish your own VRP service on ArcGIS.com and then you may have a way inside of ArcLogistics...

46:17...where you can point to your own VRP service hosted by Esri and then use the client that way.

46:23And that's the way that we're thinking long term.

46:25You may see that available as a part of a future release of the product.

46:29You download the ArcLogistics client, install it, and you point it at your own services that are hosted on [unintelligible].

46:35[Audience question] Just going back to what Jack said, he wanted to grow in what we were doing...

46:38...he wanted to grow your capability and give more to others.

46:41You've got like 95 percent of the roads; let us contribute the three and a half, remaining 5 percent...

46:47...as opposed to pushing it all back on us. That's what I'd like to do is help you get it and that's kind of...

46:52[ Product team participation] So you're talking about even more so just building the underlying street network or improving it...

46:57...so that we're all contributing to the same basemap [inaudible] as part of our long-term plan.

47:02We won't see it in an update this year, but we may see it in an update that's a year, two years away.

47:08Yeah, that model's very consistent to where Esri is going as opposed to, I think...

47:16...less targeted at supporting individual users of their own data.

47:20The idea of developing the community resource is spot on.

47:26We talked about how I can share routes with my drivers, whether generating reports or through the [ArcLogistics] Navigator.

47:34At the three-fifteen session, you'll see a very neat demo by Jeff and Carl on what'll be coming later this year...

47:40...in terms of using smartphone devices and what'll be there. So please stick around for that.

47:44Can I track my people and vehicles? You're going to see two examples of that.

47:48Greg's going to talk a little about what he's done with his customer and TomTom WORK.

47:53Jeff and Carl are going to talk about what we've got coming down the line for tracking and messaging...

47:57...and statusing with ArcLogistics itself.

47:59Can I use the online solution with a larger fleet?

48:02And there was a question in the back, you know, can I get a volume discount if I get multiple subscriptions.

48:10I'm the sales guy, so I'm obviously going to say everything's negotiable.

48:13But the use of ArcLogistics, the online solution, and larger fleets does go a couple of ways.

48:21You can license multiple subscriptions to put over multiple facilities.

48:26You will be able to do an enterprise license for different scales of subscriptions.

48:31You'll also be able to do an enterprise license, capped in quantity, for the single-user subscriptions as well.

48:40[Product team participation] Well, there was a...we do have sort of the larger subscription now, capped at 50 vehicles...

48:46...and we do have the capability to go larger than that.

48:50We've been talking about maybe increasing the maximum fleet size...

48:53...from 50 vehicles to 100 vehicles or maybe even stretch in the next couple of years to 200 vehicles or more.

49:01Right now, we felt confident in beginning to provide quality online services to address the 50-vehicle fleet size.

49:09And in the future, we may move up to a hundred, 200 vehicles.

49:13The problem, as you can expect, you know, it gets bigger and it takes longer to solve.

49:17And we have server resources that are available to us that can scale out over time...

49:23...but we really didn't want people to be using the online service and spending 30 minutes, 40 minutes...

49:28...an hour to solve the problem for 200 vehicles.

49:31We wanted to have an expectation of the online service where you'd get all your data in there...

49:35...and you can solve your problem within 10, 15 minutes [inaudible] today.

49:40And we're still recommending to people at this point if they have the larger fleet and they want to solve the larger problem...

49:45...they should be using the desktop version of ArcLogistics. But that's not our long-term plan.

49:49Our long-term plan is to support larger fleet size [inaudible].

49:55Yeah. That's a larger fleet on a single...solving a single problem as opposed to distributed problems.

50:03[Product team participation] So we do have some customers that are looking at the online solution and they have as many as...

50:09...you know, 2-, 3-, 400 vehicles in their fleet, but those vehicles are distributed across several warehouses...

50:15...and they just solve for each one of those warehouses.

50:18[Audience question] So do most school districts agree to stick on ArcLogistics Desktop?

50:22Well, most school districts right now that are doing school bus routing are really using ArcLogistics for paratransit routing...

50:34...special needs kids, which requires the paired orders.

50:41So you have to pick up a student at a particular...multiple students get picked up, they go to multiple locations.

50:47There may be a limited amount of time they can be on the bus.

50:50And that kind of functionality is supported in the desktop.

50:53[Audience question] Yes. It's a different question. 'Cause like the City of Denver, you know, has like 300 buses it has to route.

50:58They have to stick to desktop to do that?

51:02Well, if they're trying to do that in one big solution, absolutely.

51:06If they just want to click it once and say "go" and let the route solve, they'd have to use the desktop.

51:14We talked about tracking vehicles and the larger fleets. Any other additional frequently asked questions?

51:21These are all really good questions. I talked about that.

51:28Let's talk about the business partner program real quickly before I introduce a business partner.

51:33And the ArcLogistics reseller program is focused at Esri business partners who will do end-user sales of ArcLogistics.

51:42And we've had some very good business partners who have resold the desktop product. Greg's one of those, amongst others.

51:48And this program's also in place with a couple of interesting twists for the online product.

51:54We expect the reseller to do end-user sales.

51:57They will provide their own professional services as well...

52:00...and will have a separate revenue stream from doing custom data integration...

52:05...training, maybe some industry-specific implementations, tracking and telematics...

52:10...exporting route and stop information back and forth between the customer's systems, and providing the end-user support.

52:18The online reseller business model's a little different. If you're an ArcLogistics...excuse me.

52:23If you're an Esri business partner, you know you traditionally get your points, your 30 percent of the initial sale...

52:29...and that's all you get for that opportunity; you don't get anything on the maintenance.

52:33With the subscription program for ArcLogistics, you will get 30 percent on the initial sale...

52:40...you will get 30 percent on the subsequent years' subscription if you as the business partner renew the customer.

52:50If the customer doesn’t renew through you, if they come through Esri, they become an Esri customer.

52:58To be part of this program, you must be an approved ArcLogistics reseller.

53:04That means you need to be an Esri business partner and then be approved to be a reseller.

53:08You need to submit a business plan, need to know the product and be able to support it, and be an active ArcLogistics reseller.

53:16The way the process works, if you want to be an ArcLogistics reseller, after being approved to be a business partner...

53:21...you fill these docs out. The Business Partner Group and Carl and I review those and go ahead and process those.

53:28The business partner does provide tier 1 customer support.

53:31In exchange for the recurring revenue, you have to renew the customer as we talked about...

53:36...and you need to continue to generate new subscriptions in order to be eligible for the recurring revenue.

53:45With that, I'm going to turn it over to Greg.

53:46He's going to talk a little about his business as an ArcLogistics reseller and has a very interesting use case for you.

53:53Thanks, Rich. Thanks, everybody, for being here.

53:56I don't have a radio voice. Can you hear me okay? Works? Okay.

53:59So Route Solutions, we've been Esri partners for a little over nine years now.

54:05As you can tell by the name, we specialize in all things transportation, and we focus on the ArcLogistics product.

54:10And over those nine years, that's evolved of course, but we've worked with, as you can see, numerous clients.

54:17So we have an excellent foundation across many industries, and like Rich mentioned today...

54:25...I'll show you both a partner integration and a case study based on that history.

54:30So for the value-added services, of course business partners get involved with end-user training...

54:36...so we offer on- and off-site user training, and often could be a room like this or it could be one-on-one training.

54:43It could also be up-front training or follow-up training. All those are pretty common scenarios.

54:50Client-specific customizations. ArcLogistics does a good job of handling most of the business rules.

54:55I'll go into that deeper in a slide.

54:58But we've done a lot of client-specific work. It could be something like a solver.

55:03We've done clustering solves that are different.

55:05They approach the problem differently than the out-of-the-box solver.

55:08We've done geocoding, for instance, via web service, so we've done all sorts of different customizations there.

55:15And the most common customization would be getting the data in and out of the system, so I'll go into that a little deeper also.

55:23The partner integration I'm going to speak about is TomTom WORK.

55:26Hopefully you'll visit us down at the TomTom WORK booth. That's in the 2700 line over there.

55:36So the first thing I encountered, you know, from the first customer on through the last one I've worked with is...

55:42...they say, I understand the capabilities of this routing software, but it may not work for us because our business is very unique.

55:49And that's, you know, fair enough. That's true.

55:51It's rare that you would come across two businesses that have the exact same challenges.

55:56But the beauty of ArcLogistics is that it's able to adapt to the typical challenges that are faced.

56:02For instance, Rich mentioned time windows. These specialties like the people requiring Jeff to be the driver that visits them.

56:11Capacities. All these things are wrapped nicely into the software.

56:13It does an excellent job of handling most of these things that do make these businesses unique.

56:20There are also advanced rules. And this is just cutting edge, where we're now able to handle restricted streets better.

56:25Previously we had to walk away if someone said...

56:27...well, we have hazardous materials or we have, you know, certain weight restrictions.

56:32Well, now we can handle all those with the improved data that's provided from the digital map companies...

56:36...and also the network dataset allows us to handle all sorts of turn restrictions, U-turns, et cetera.

56:42And customization in integration. So where Esri's done a great job of packaging most of that into the user interface...

56:51...there are times where we of course have to improve upon or customize some of those integration aspects.

56:57Like I said, import/export's the most common.

57:00Some people still use archaic systems, while other people are on cutting edge...

57:04...you know, they're trying to use web services and XML to pull their data in. And we can assist no matter what the case.

57:12And we do full partner integrations.

57:14The one we'll be showing is TomTom WORK, where we've actually taken the full feature set of the Esri offering...

57:20...and we've made it work with the full feature set of TomTom WORK. And I'll go deeper into that.

57:26And for these implementations, it's usually a good time to talk about the workflow itself...

57:31...because sometimes you're just replacing another routing system that they no longer favored...

57:38...and other times you're replacing entire aspects of their operation.

57:41Sometimes, you know, you're replacing three or four arduous steps that they're handling every day.

57:47And of course I already touched on training. That's...

57:50You of course have to teach the user how to use the software...

57:53...but typically we also have to train the software about the implementation itself.

57:57We have to train it to...cases like the Jeff rule, all these sorts of specifics, client by client.

58:05So the expectations that a typical ArcLogistics customer would have.

58:08Of course they're buying this and I'm in the room because they expect route optimization...

58:14...but they of course want to maintain their rules. They prefer evolutionary not revolutionary routing.

58:19They want to keep business similar to the way it's being performed now but optimize it as is.

58:26And they also want to set expectations to drivers, so the most common case we already saw...

58:31...the beautiful wall maps and, like Rich mentioned, the yarn between points.

58:36These actually do happen where they've pretty much assigned a group of work, handed it to a driver...

58:41...and said, "Please do your best and don't incur overtime," and that's their current optimization method.

58:47So with this technology, we're able to set very concise expectations for the drivers.

58:53And the return on investment. Of course, since we went through the cost of the application...

58:59...we have a very clear picture of what the costs are...

59:01...and therefore, we need to have a clear picture of how to collect an ROI on that investment.

59:07Luckily, that's pretty easy to do with ArcLogistics because we're using the real street network...

59:11...we have an example of how the routes looked previously, and we have an example of what they will now become.

59:16And typically, the return on investment is not only easy to prove but easy to attain.

59:22Another expectation of course is that we integrate with their current workflow.

59:26That could be a CRM system, that could be some sort of tracking or navigation system.

59:32They're not only looking for integration, but they're typically looking to make it easier than it was previously...

59:38...so of course that's understandable.

59:40And as Rich mentioned, they may not be a logistics shop, and they're certainly probably not a GIS shop.

59:48A lot of times, the first time we show their stops on the map...

59:51...it might be the first time they've ever seen that information on a map...

59:54...so their minds race with all the opportunities of seeing all these routes on the map and being able to rework routes...

1:00:01...dissolve routes, do whatever's necessary now in the spatial world to make more efficient routes.

1:00:07And there's also now the opportunity for real-time awareness, because now that we have the routes planned...

1:00:12...we know exactly when certain drivers should be in certain positions...

1:00:16...and whether they use [ArcLogistics] Navigator, TomTom, whatever system of their choosing...

1:00:20...we have the opportunity to see the plan versus the actual of what's actually taking place versus what was expected.

1:00:28So the partner integration I'll speak about is TomTom WORK. If you're not familiar with TomTom WORK...

1:00:34You're of course likely familiar with TomToms. TomTom WORK is the commercial edge of the TomTom company.

1:00:42So they're offering connect to navigation solutions.

1:00:45You're already familiar with the TomTom head units, the GO unit like in this image...

1:00:50...but they also offer the ability to track those units. That's where the connect to navigation comes in.

1:00:56The second image is of a LINK box; that's essentially a modem that uses the cell network to report positions back to the office.

1:01:04So with this solution, of course you're getting navigation, you're also getting these position reports...

1:01:09...you're able to two-way communicate from the office and the vehicles. So that could come in the form of messaging.

1:01:15You can push/pull jobs back and forth.

1:01:17If someone's running behind, you can interactively pull jobs from them and push them to another driver.

1:01:23And of course, the drivers are marking items as complete so you're gaining all this information in real time...

1:01:30...that's flowing back to the office as it's happening.

1:01:33And I'll refer to WEBFLEET.connect.

1:01:34That's the API by which we're able to send information to these devices and collect it as it's happening.

1:01:42So the integration itself was built by Route Solutions; it's a pretty simple wizard-style export.

1:01:48What it's doing is a solution such as what you saw displayed on-screen would be sent to the cloud...

1:01:55...sent to the TomTom cloud, and that's done via the wizard that's shown.

1:02:01Important to note that the devices, it's all being done wirelessly so as is often the case, they may not even come to the office.

1:02:08They might be leaving from their residences in the morning.

1:02:11And they're able to actually send the ArcLogistics optimized routes in that sequenced form directly to the driver's device...

1:02:18...so that when they boot it up in the morning, they already have their list of all their sequenced stops for the day.

1:02:23They don't have to dial in to the office or get them in any other way.

1:02:29So I want to show you a case study briefly about using this partner integration.

1:02:34The client was a large retailer in the U.S., and the work was interesting; it was credit collections...

1:02:42...so very interesting use of ArcLogistics, but it's very capable of handling these kind of problems.

1:02:49[Unintelligible audience question]

1:02:51It's nice to work with revenue generating cases.

1:02:55But they have...45 drivers are using this, so the office is using ArcLogistics.

1:03:01As mentioned, they're sending the optimized routes out to these TomTom WORK devices.

1:03:06Many of the drivers leave from offices, many of them leave from their homes; they're spread out all across the southern U.S.

1:03:12So pretty remote locations often.

1:03:15So they're using the combination of these two products in this case.

1:03:20So the challenges for this client, again, they say, Our business is unique; we're not sure this is going to work for us...

1:03:25...because of the spread-out drivers. They say not only are they spread out, they all start and end at different places...

1:03:32...but I've got some rough neighborhoods I go to. I'm doing debt collection, after all.

1:03:36And I want to send certain drivers to those ZIP Codes; I want to send Bruno to these three ZIP Codes...

1:03:41...because he's ex-navy, he can hack it. Okay?

1:03:45So their methodology before was we're going to sort these into ZIP Code stacks, and we're just going to hand them to drivers...

1:03:52...and they'll know what's best because they, you know, they get paid an hourly wage plus commission...

1:03:56...so everything's going to work out just fine.

1:04:00The way we solved that with ArcLogistics was, it's already aware of the geography itself.

1:04:06If they're starting towards the west, it's going to gravitate to give them work from the west.

1:04:11But they can also use those zones, so it's just a rule where, for whatever reason they want to give that driver these three ZIP Codes.

1:04:18That's a perfect case of why you would use a zone, and they do.

1:04:22And instead of the driver sequencing their route, they're actually, you know, coming to the driver in a sequenced fashion.

1:04:27They would have to go out of their way to mangle the route.

1:04:31And another big situation was, they have priority-based routing.

1:04:35They have a hundred thousand accounts that come to them every month...

1:04:39...but they have to find the 20 percent that have the most meat on the bone.

1:04:42That could be because they have to collect the most money.

1:04:44They could be so far past due that they're, you know, desperate to make a deal with the client...

1:04:49...or maybe someone said, well, come by next Saturday; that's a promise-by date that I've listed there.

1:04:53So the way that ArcLogistics handles this is that we preprocess and we flag the big money accounts with a high priority.

1:05:00So whereas the driver used to say, well, I'm going to go to this ZIP Code and knock everything out...

1:05:04...they might have hit 80 percent low priority, whereas now, ArcLogistics is sending them to these very high-priority accounts.

1:05:11And sure, they can do backfill if there's, you know, time slots available, it'll work in the normal priorities.

1:05:16But it's intelligently attempting to get to the high-priority items.

1:05:21And the actual field productivity challenges.

1:05:23So prior to this, they had no in-vehicle navigation...

1:05:26...so now they have upgraded to the world leader in, you know, navigation technology.

1:05:31And like I mentioned, the routes are coming to them each day already sequenced...

1:05:35...so it's a huge upgrade in terms of navigation.

1:05:39They had very basic tracking before, but there was really no connection between the routing...

1:05:43...so you would have to have a few screens up to see the routing versus the tracking...

1:05:46...and kind of have to determine manually if someone is running behind or ahead, whereas now, they are able to see both.

1:05:54They actually have dashboards, you could call them, where they're seeing who's ahead or behind...

1:05:58...who's trailing in terms of revenue collected versus exceeding that.

1:06:02So they have much stronger tracking capabilities because it's all interconnected.

1:06:07And also they had full laptops before. So like I mentioned, they're not going to the best neighborhoods.

1:06:12They had problems with these being stolen or broken, and they were actually more expensive than the TomTom solution...

1:06:18...which has a monthly fee as well.

1:06:20So because they're portable, they can always tuck them into their jackets if necessary to keep them out of other people's hands.

1:06:29So the actual workflow begins with ArcLogistics; that's where we're creating these route plans...

1:06:33...taking into account that we want to hit the high-priority items and certain geographies.

1:06:38When they're satisfied with those routes, they get uploaded via WEBFLEET. That's, again, the API for TomTom.

1:06:45And they're going directly to the devices of the drivers.

1:06:48So as the events are taking place, that's all being collected in real time.

1:06:52The events could be breadcrumbs, where the driver's at, at any moment in time...

1:06:57...but it's even more informative to see that they've statused a job as completed or collected...

1:07:01...or that they've statused a job as saying that the person that they visited wasn't too pleased to see them.

1:07:07So all of this, you know, knowledge is collected during the day, and at the end, they analyze that day's activity.

1:07:14They can tell, you know, if they're behind schedule, maybe they need to start running more overtime.

1:07:19Those kind of things, you know, at a macro level, they can look at it day by day.

1:07:24And of course, then everything flows back cyclically through ArcLogistics again.

1:07:29If they've already collected an account, it is removed from the list...

1:07:32...versus something else that now becomes past due is added to the list.

1:07:35And really it's just a daily cycle that's never-ending for them to collect on these accounts.

1:07:41So the return on the investment.

1:07:44The first month that they used this, they went from 25 visits per driver per day to 43, a 60 percent increase.

1:07:52And over that month, they collected 700,000 more dollars than they had the previous month.

1:07:57So you know, like I mentioned, there're a large number of accounts, about a hundred thousand...

1:08:02...but it's a very significant amount of money that they increased.

1:08:05And it's for various factors. Like I mentioned, they have now optimized routing, they have in-vehicle navigation.

1:08:11They're also...the expectations have been set, so they're very much aware that they're being watched...

1:08:17...and that they need to be productive each and every day.

1:08:20And so, as you look at it, the return on investment was just a matter of days for this client.

1:08:25And this was in quarter 4 of last year, so they're continuing to use the product now.

1:08:32That's all I have. We're going to do some Q&A. Rich'll head that up.

1:08:36Great. That's a great example.

1:08:38Thank you. Thank you.