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On December 13, the 36 Krypton WISE 2021 New Economy King Summit with the theme of "Hardcore Era" was held in Shanghai. "Hard core" is the challenge and opportunity brought to China's new economy enterprises by the current era and the general environment. On the one hand, companies are required to pay attention to technological innovation and find their own "hard core" barriers; on the other hand, companies are required to give back to the society and show more "hard core" "nuclear" responsibility and responsibility.

Shan Dandan, founder and CEO of fuyoukache, took "TRUCKING STORY" as the theme, and shared Fuyou Trucks' thinking and practice of continuously using technology to bring benefits to the industry in the field of road freight transport.

Shan Dandan believes that there are two major pain points in the current road freight field: non-standardization and low efficiency, and these two pain points also make it difficult for freight drivers to collect money and make less money. Fuyou Trucks uses AI algorithms to realize the standardization of freight prices through industrial Internet thinking. At the same time, it has developed an intelligent dispatching system to conduct unified dispatching of regional freight orders and vehicles to achieve standardization and maximize efficiency of industry services.

She said that at present, FORU Trucking uses algorithms to improve the efficiency of the supply chain, improve transaction and transportation efficiency; in the future, in terms of tool changes, as long as it is to improve the efficiency of the supply chain, it is worth doing. Autonomous driving is also a way to improve supply chain efficiency through production tool innovation.

The following is the transcript of Shan Dandan’s speech (edited by 36 Krypton):

Hello everyone, I am Shan Dandan from Fuyou Trucks.

The topic I am sharing today is "Truck Story". We do not sell trucks. We are an "Internet + logistics" mainline transportation platform. We use technology to empower, organize, and mobilize individual truck drivers to provide transportation services for front-end customers. Therefore, the word "general mobilization" is quite suitable. We mobilize trucks and mobilize trucks to serve customers.

Everyone here and online knows that McDonald’s Big Macs all over the world taste exactly the same. The time from placing an order to getting a Big Mac is about 3-5 minutes. The greatness of McDonald’s lies in its standardization and efficiency. Freight also has the same purpose.

The movie "Big Entrepreneur" is about the entrepreneurial experience of the founder of McDonald's. At the beginning of McDonald's founding, the meal time was 30 minutes, and there were no standards for French fries and hamburgers. The founder of McDonald's felt that such inefficiency and non-standard would make it difficult for McDonald's to develop globally.

So he did a particularly great and interesting thing: they shut down for a few days, disassembled and drew each flow chart on the tennis court, kept rehearsing and walking through the process, looking for the optimal solution and the most scientific process. After a few days of frequent drills, they found the best process, and there was a McDonald's that delivered meals in 3-10 minutes. This makes McDonald's great.

In the road freight industry, these two problems also exist: non-standardization and low efficiency.

There are 20 million truck drivers in China's freight industry. Most of them are self-employed, and they have different experiences and different services. On the other hand, due to China's rapid development in the past ten years, customers have higher and higher requirements for logistics, and what they need is high-quality and efficient transportation services.

Let me give you an example. For example, the transportation from JD.com’s Beijing warehouse to Shanghai warehouse is carried by Fuyou. There are 6,000 express orders in one of our large trucks, and 6,000 orders are 6,000 customer experiences. If the car is delayed by an hour or a few hours, it means that the experience of 6,000 customers has been lost. Therefore, in the road freight industry, the pain points of non-standard and low efficiency are very strong.

For truck drivers, what are the consequences of non-standard and low efficiency?

First, it is difficult to collect money, and second, it is less profitable.

Why is it difficult to collect money? A large number of drivers and cargo owners in the industry will argue because of the freight, or the driver will not receive the freight. First of all, the pricing in this industry is very non-standard.

Take the freight rate of a 17-meter 5-car van from Beijing to Urumqi as an example: the freight rate in July and August is about 20,000 yuan or even lower, because at this time there are a large number of melons and fruits in Urumqi that need to be shipped to all parts of the country. The drivers went there and came back soon, so they were willing to go; in November and December, the roads were icy and slippery, and there were no products shipped out of Urumqi, so it was difficult to find the goods on the return journey. The drivers were unwilling to go to Urumqi, and the freight would rise.

This is only a seasonal factor, and there are many other factors that will affect the price, including the origin, destination, type of cargo, loading time, palletized or bulk cargo, and customer habits, etc. These factors will affect the freight rate.

Fuyou Trucks has been in the industry for more than 6 years. For each order, we know its origin, destination, carrier driver, type of cargo, timeliness requirements, weather conditions, including whether the departure time is day or night, etc.

The data accumulation of more than 6 years is the basis for our intelligent pricing system. On this basis, we use AI algorithms to realize the standardization of freight rates. This is what Fuyou Trucks did to solve the "difficulty in collecting money" for drivers, and to avoid repeated arguing between drivers and cargo owners because of prices.

The second is "earning less money". Cargo owners want low prices, and drivers want to make more money. How to solve this contradiction?

As the founder of McDonald's said, to improve efficiency, employees should not only be required to run faster and work harder, but to seek benefits from technology. In the era of the industrial Internet, it is necessary to improve industrial efficiency through technology. Squeezing drivers is an unacceptable and unsustainable "dead end".

According to industry surveys, 70% of truck drivers do not have fixed transportation routes, and 60% of their vehicles travel less than 10,000 kilometers per month. That is to say, truck drivers drive empty and wait for a long time. The traditional mode of dispatching drivers is the convoy mode. After a driver carries an order from Shanghai to Beijing, he needs to find an order from Beijing to Shanghai. This mode is relatively inefficient. Fuyou Trucks has developed an intelligent scheduling system, which can view all orders and vehicles in this area from the perspective of God, and intelligently divide orders through algorithms to maximize efficiency.

To give an example, the driver arrives from Shanghai to Hefei. Instead of finding an order for him to return to Shanghai from Hefei, we may go from Hefei to Yangzhou, Yangzhou to Ningbo, Ningbo to Suzhou, or Suzhou to Jiaxing. Maybe a car can only run 9,000 kilometers per month, but through Fuyou’s smart scheduling, it can run 12,000 kilometers. This part of the increased marginal income can allow drivers to earn more money, save freight for customers, and allow the platform There are benefits. This is the intelligent scheduling system we made.

On the whole, Fuyou Truck is like a "capacity processor", we call it "Fuyou Processor". Truck drivers and vehicles are very fragmented and have different levels of service, but the "processor" of Fuyou can provide high-standard and high-quality services to meet customer requirements.

What did we do in between? In addition to smart pricing and smart scheduling, we will also track the driver's itinerary. For example, if the speed of the vehicle continues to be lower than 30 yards, the system calculation may be delayed, and it will automatically remind; the system will also tell the driver which section to take the high speed and which section to take the national highway, which saves money and does not delay the time limit.

Through various standardized processes and mechanisms, although we do not actually own a truck, the on-time delivery rate can reach 95.2%, which is higher than that of most ordinary fleets. At the same time, it helps truck drivers reduce the empty mileage by nearly 23%. This is the power of technology.

In the past ten years, many people have paid attention to the freight industry, hoping to explore how to transform this industry through Internet technology. However, many companies still stay at the level of information matching and information matching. Fuyou Trucks has always been a platform for contract fulfillment and transportation, which is very hard and tiring, but we have been focusing on this field for 6 years. We have a large amount of transaction data, a large amount of accumulation of industry know-how, and data insights and The ability to implement technology.

We built an intelligent middle platform to output the "Turing" intelligent pricing system, the "Compass" intelligent scheduling system, and the "Prophet" intelligent service system. These three systems can ensure that each order of goods is delivered to customers accurately, safely and efficiently, allowing drivers to earn as much money as possible, saving costs for shippers, and promoting the improvement of industry efficiency.

Thanks to more and more people paying attention to the industrial Internet and entrepreneurs of the industrial Internet, we have also received attention and recognition from domestic and foreign media and consulting agencies. Last year, Boston Consulting Group and Forbes China took the initiative to award us the honors of "Top 100 Emerging Market Technology Challengers" and "China's High-Growth Enterprises". I also just received the "Ernst & Young Entrepreneur Award" two days ago. Although this industry has worked very hard, I think it is also worthwhile and very gratifying.

Although long-distance road freight is very bitter, tiring, clumsy, and heavy, for Fuyou Trucks, this 4 trillion yuan market is a sea of stars, and our exploration will never stop there. On the current basis, we continue to polish our algorithms and data; in the future, we will deploy autonomous driving, new energy, and some global deployments.

The most fundamental aspect of the Industrial Internet is to improve the efficiency of the supply chain. The current Fuyou Truck uses algorithms to improve the efficiency of the supply chain, improve the efficiency of transactions and transportation; in the future, in terms of tool changes, as long as it is to improve the efficiency of the supply chain, it is worth doing. Autonomous driving is a way to improve the efficiency of the supply chain through the innovation of production tools. We have established an autonomous driving joint venture company.

I believe that Fuyou's accumulation of operational data, scenarios and know-how over the years is very valuable for autonomous driving. We input data, scenarios, and know-how into the autonomous driving algorithm, and the results of the autonomous driving test are fed back to the accumulation of scenarios and data. This continuous iteration and exercise will actively promote the implementation of autonomous driving.

The four little girls you see now are our employees. Although this industry is suffering, everyone in our blessing is working hard like them every day. They are wearing our t-shirts, let me say a few words about our logo: FOR-U Smart Freight, FOR-U need not go into details, the blue of Smart below represents technology, and the gray of Freight is what we think the freight industry still needs to change. The place.

We hope that through the efforts of our group, there will be more and more blue and less and less gray; we also hope that through my speech, more attention will be paid to the freight industry, and more excellent people can be infected and invested together In this industry, we will create the future of this industry together.

We made some stickers that are related to roads. In my opinion, the freight industry is a great industry, because everything you see needs to be transported, mineral water, stereos, microphones...everything has to be transported by main line to the warehouse in the city, and then delivered to us . If you don’t mind, I hope you can scan the QR code to get some stickers, which can be given to truck drivers you know, or you can stick them on your own cars. We hope to use these road-themed stickers to pay tribute to the 20 million road heroes.

Dao·Zhijian, this is our mission, which means "making road freight simpler and smarter", and we hope that through our efforts, this industry will be more transparent and more respected.