Episode: 94 |
Dirk Hanschur:


Dirk Hanschur


Show Notes

Our guest today is Dirk Hanschur, the CEO of Log-hub, a firm that has created a range of supply chain analytics tools that work as Add-ons to Microsoft Excel.

In this Episode, Dirk explains a selection of these apps which include geo-coding, distance calculator, live tracking, shortest path calculator, milk run optimization, and more.

Log-hub is happy to partner with independent consultants, who can become authorized resellers of the software.

A link to their website is in the show notes.


One weekly email with bonus materials and summaries of each new episode:

Will Bachman 00:00
Hello, Dirk, it is great to have you on the show. Hello. So, Derek, know one of my friends, close friends started using your software, your company software and gave it a very, very strong recommendations. He’s helped implementing it at one of his clients. And so I’m really appreciative of you coming on the show to talk about log hub in before we just kind of get to log up, could you give us a little bit of your background?

Dirk Hanschur 00:34
Yes. Yeah, my background is I spent many years more than 1010 years for clinical in different global position. This means I have this include inaugural set up the corporate supply chain consulting group that time Yeah, this 25 headcounts located in Luxembourg in Delhi and all day and so on. Yeah. And out of that, I have supported the entire development of integrated logistics, which is the four PL arm of kuna Naugle, I was responsible global liquid solution design on that section now we have started in the beginning with quite a limited overview of engagement and has has grown up that entire business field over the years. Yeah, it’s a neutral business fields for for PR logistics, which include an item so both both solutions designed for, for for concept design for integrating logistics for for PR, but also supply chain consulting on a corporate level for krishnanagar across all business units. So for CIF right outside overland logistics, compact logistics, integrated logistics and so on. Right after that I moved out I the last few years, I spent the capital of appeals, in a company doing the teaching design software and also consulting services. However, last year, we have found that lock up with the purpose to build a different philosophy I want to live on demand warehousing, Airbnb for warehousing, but combined with also the design elements upfront to have decision making support. On the one hand, this own software and on the other hand, also the phone consulting services. Yeah, if needed, but only if needed. We build up a consulting network across the globe there currently. Yeah. But the own software itself tembisa completely dedicated vision behind that there is a dedicated development stack behind that. And we have there are some some major plans behind that.

Will Bachman 02:53
That’s great. Why don’t you describe log, the log hub software? How do you how do you explain it to people?

Dirk Hanschur 03:02
It’s quite simple. First of all, division, there are 10 1000s of people globally and logistics engineers, supply chain engineers, light chain analysts, and so on. They all do the same. They all guide the things they would like to have. They tried to solve logistics issues, logistics problems in Expo. And we said, let’s build something which we can login into excellent, which we can build in here. And for a distribution of globally, this means our software is available in worldwide in the Microsoft Office, excellent store, you can download it within seconds, it is an app in app concept. This means today, we have a bit more than 20 apps in it. And on a monthly basis, we deploy new apps, so that the focus, which is scalable and developing and permanently. The vision is from the from the overall elements. We have elements in it in mathematical optimization. We have elements in it in artificial intelligence, where we train neural networks, but also intelligent data services or alternative algorithms and so on. Yeah. And with those if those key color elements on the one hand, yeah, we are now building apps in all the different areas of logistics. Yeah, it means we have apps in the in the area of CIO services like geocoding distance calculation and all of those things. We have apps in the area of transportation management and rotation optimization in network design in We will now focus also on intralogistics on demand planning, demand forecasting, will really spread it quite right. Right, right, that that we that we go in all different areas. of, of logistics where you have your typical engineers has to meet. The idea behind, or the concept of an app is quite simple. Yeah. Which means there are always four steps, you need to select the input table. input data could be one or could be multiple table, it’s just a link simple and excellent. Yeah. Then step two, you have settings and calculation, it will not be calculated on the local machine, it goes then to our intelligence back end center. And we calculate the jobs for them. So that we have, we have we don’t have business, we have system requirements on that side, that previously, you can download. and install tape could be one or multiple tables. That’s all would be visualizations, we have dashboards, we have some powerful supply chain map integrated, which also can be used as a separate standalone app where you can push permanently data directly into the into the map. And if you understand if the user understand one time how to handle how to handle an app, and it is within within 10 minutes, explain the forefront and guide integrated in there. And yeah, then he understands how to handle all the other apps format from a handling point of view.

Will Bachman 06:21
Okay. So it’s, it’s an it’s a sort of an add on to Excel to Microsoft Excel, it’s an add on and then you pay is it just you pay one price per month? It’s like a subscription, you pay one price per month, and you get all all of the apps? Is that how it works?

Dirk Hanschur 06:44
Exactly. So it’s first of all, it’s in Yes, this means you just from the storage of downloads the file, this takes seconds on the content data and the sidebar opening, the sidebar is format. And it’s in website, nothing different than a website that we deploy every night. A new release, it is, from a basic point of view, it’s a subscription based model. Yeah, either per user or per company on an attractive attractive basis where we, this is what we typically do to make a flat fee per company and the company has unlimited number of users, every user has access to all channel apps. And every channel, that’s what we deploy, will be accessible directly by all users globally. This is the this is the one hand, but we do also tailored my apps for specific use cases. Yeah, could be in the area of forecasting, machine learning could be in the area of optimization, and so on. And those specific apps, we distribute only for the user to need. All right. And then. So then the the actual calculations are then not taking place on your own computer. But the data gets uploaded to your computer’s in the cloud or your computers at your at your data center. And that’s where the actual analysis takes place. And then it gets the results get downloaded back to your own computer.

Will Bachman 08:13
I’m sure a lot of people ask. I’m sure a lot of people ask about, you know, data security, if they’re uploading their their data. How do you how do you manage that? How do you get people comfortable with the data security issues?

Dirk Hanschur 08:29
two things. First of all, are three things. First of all, the data transmission is is based on HTTPS SSL encryption. Yeah. This is the standard also what what all the banks are using an online banking? Yeah, it’s the highest industry standards currently for data transmission on the sector. Great. Second, that data will not be stored on our site. Yeah. So it is just it just runs through high speed cache. And once it has been calculated, the data are directly normal, and we don’t store it. Second, we make sure that the data centers our worker servers are located in Germany and Switzerland with especially in Germany with the highest data security standards legally bind. Yeah, that is for us. That is fast, key and important. And secondly, we try to keep as much as possible data in our controlled network. Yeah. And that’s why we have our own dashboards and have our own methodologies. Nevertheless, we have also the possibility to use and is also possibility to call your puppet services. Yeah, like connecting, for example, Google, or like connecting words, three words. This means we call what’s three words in the back end. However, the data to them is anonymized. This means we just sent an address to them. And watch the world they don’t know which assets is behind which customers behind HFT to translate and physical address. And the rest will be will be everything kept by ourselves and controlled by ourselves. Thank you.

Will Bachman 10:17
All right, great. So let’s, let’s look at some of these apps. I’m curious, sort of what did you know? Maybe go through some of these? And have you explained to us? What is the use case for the app? Like who would be using it? And what’s the purpose?

Dirk Hanschur 10:38
Maybe we could start with so and anybody who wanted to follow along and look at these on your website, which is log LG dash hub, h UB comm go to the page that just says, apps on it some supply chain apps and just go to the app portfolio? It’s very cool page here that has, I don’t know what about 30 of these. And each one has a link to its own page for each app. So maybe start with the supply chain map, let’s talk me through that one. That’s the first one on the top left there. Exactly, we have different columns in those apps yet, you can locate the apps in the in the in the right area. So everything which is green is somehow related to geographical apps that we have, we do have their supply chain map, which is a powerful map, this map is just bait for pushing data into the map and creating powerful supply chain maps, with flows with locations and so on. Yeah, the concept everybody who use it first time will realize it’s extremely simple to use. And it’s extremely powerful as we are working in the layer structure. This means that permanently you can pump and push push more data into the map. And it’s organized in layers, the layers you can top up and down for further further further sequence how it will be painted on the map. Yeah. And in supply chain maps, you can either either either push locations, physical locations into the map, either on access basis or on latitude longitude basis, you can push elations to it. So the connections, for example, for upstream for intercompany flows into effectively flows, replenishment flows or distribution flows. It’s up to you up to you how you name it. And also area, you can upload entire area. Yeah, worldwide. We have we have some we have some bench of of the areas in it. Certainly not not only state, inter County, but also we have also district and smaller governmental districts in it. Yeah.

Will Bachman 12:55
Okay. So that’s like a maybe it’s just a visualization. It’s a visualization engine behind them. Yeah. Got it. So I can imagine that if you had data on, where are your goods being produced, if you had, like, where your own plants where your customers where your potential customers, maybe you could upload the sales territory of your different sales reps. And then it could be actually a sales tool as well. So your sales rep could see who are the customers in my area that we’re not serving today? And then you know, which ones do I want to go after? Yeah,

Dirk Hanschur 13:34
of course, we are sticking about, we are thinking about for also targeting into sales. Yeah. It’s not only the mapping, it’s also out optimization. It is also an optimization on the on the territory, who which sales people is doing which territory. There are many use cases for that, but for the time being, we focus food on logistics to get it up and fly. Yeah. And then we are quite open to targeted also in different other industries sectors. Yeah. All right, cool. Today, the focus is on logistics. First of all, just to keep focused on that, as we are, we are still quite young yet otherwise to be open to much construction area. Awesome. So then you have another one here that geocoding that one turns, addresses pretty much anywhere in the world, I guess and to GPS coordinates.

Will Bachman 14:29
When when might someone use that tool?

Dirk Hanschur 14:35
If you are in a strategic design project, it doesn’t matter if it is strategic design or out optimization, also one, you have been out optimization, for example, we plan new clients, we have two possibilities. Either you go in this access or you go with this latitude longitude. Yeah, if you go in with latitude, then you need to make sure that all the accesses will be found. We have two servers for that one, we go In our database and our global database for OpenStreetMap, which is already close to two terabyte assets data worldwide, or user has also the possibility to call Google on that site. So if you do that, then it could be that one or the other assets out of a batch of of 1000s of episodes will not fly. And that’s why it is possible that the user can do upfront before he goes into project in the area of data data cleaning. Yeah, doing an atlas validation, and check all addresses, all accesses will be found. Download the latitude longitude, integrate the latitude, longitude into the project and add from that time, all further calculation and optimizations will be done the non latitude longitude. By the way, this is also much faster. So user has two possibilities, either to use the geocoding, integrated in later tools, NATO apps, yeah, it’s a microservice architecture, architecture, or is doing the address validation, upfront standalone, he gets multiple information out to get also the quality out of how our essence has been found here. And that’s why we have to address validation upon you. That’s awesome. So then you have to select the clinic purpose, there’s some other geographic ones in green here, distance calculation, that’s going to be, you know, sort of that concept will be familiar to most people where you, you calculate the distance between a couple between two addresses isochrones, which is, you know, it looks very cool. People have probably seen this kind of thing before, but it’s, you can show the, I’m looking at a map here where it shows kind of travel. It’s sort of color codes and map based on equal travel times from a given location. So you can say everything here in dark blue is a 10 minute travel time, and then slightly lighter blue is a 15 minute travel time all the way to a very, very light blue, which maybe is an hour out.

Will Bachman 17:05
That’s how would someone use the ISO Crone app?

Dirk Hanschur 17:13
Exactly. It’s there. I mean, what does it do you start driving from a particular point? Yeah. From an assets and visualize and calculate of costs? Yeah. territory, which can be reached in a certain number of driving time? Yeah, this could be quite interesting. If you do distribution projects, in terms of airports, you have a bunch of temples, and you just take a look, which territory Can you reach with such a difficult, but there are many use cases which you can put on that? Yeah. And it’s, it’s a basic tool, which you can use in the, as mentioned, in many, in many use cases, for depth for planning for for store planning, whatever you can imagine. Great. Okay, why don’t you start choosing now?

Will Bachman 18:00
So we’ve gone through most of the, the the green, the geographical ones, what are some of the most commonly used apps? What Why don’t you pick the next ones here? Talk to us, you know, what are the most common use cases that people are using?

Dirk Hanschur 18:16
I mean, if you if I, they’re using it depends to the project. Yeah. The green ones, and also the area mapper and over what three words, especially the area are, what also the often use as you put a bunch of space in it. And I mean, in the US, it’s, it’s most of the time you have the state flag in the abscess itself. In other countries worldwide, you don’t have it? Yeah. This means you have a list of states or districts or sub districts or whatever, you have a bunch of addresses out of your out of your earpiece system. Yeah, you go check data, and we would make sure to match our ISO two tables in and you get the entire matching results back. Then you to us from this point, you can start to territorial planning, or territorial visualizations on an on an area they are basis. Yeah, whatever. What’s the roads is brand new, maybe a quick word on that. This is this is brand new. This is a completely new asset system globally. Yeah, the company has divided the entire globe in in square boxes of three or three meters of nine square meters. Yeah. And every of that, square meter gettin gettin and dedicated athletes with the ball with paper ups. For example. New York Times Square the ball yard has to access I get to stay fall calls. They don’t follow what’s called and reset system they cover the entire globe. This is quite interesting in if you go into factory planning or if you do in Chicago in postal services as traditional Assets do not cover weather weather weather weather postboxes. Yeah. Or you go in developing countries traditional asset system, most of the most of the way doesn’t fly if you need to deliver something in desktop. Yeah. But also but also in the automotive industry is they pushed like how, in automotive driving, not all of the places on the roads are covered by service. That’s why we’re, what’s the route is also is also a part of that. That’s why we have integrated in here. It’s not well known yet, but it will come yet. We have it already there. So you can translate the vice versa. From the from the crane Bansal it’s basic EPS, basic geographical episode, they use it from time to time in different projects. Of course, what will be used most is the maps as clear as visualization, you have a push data directly into the map or visualization, you can, you can use the nozzle in all the optimization apps later on. So that’s how to choose a sheet of South soda. The green one is used quite heavily, especially the map. And that’s, that’s the basic toolbox, which many people use.

Will Bachman 21:12
Let’s talk about the milk run optimization, I’m looking at that one here on my screen. And it’s, it’s, it’s pretty cool. It looks like what you’ve done is you have a bunch of maybe 30 or so 40 different locations that you need to get to probably, you know, every day make a pass by. But let’s say that you have those 30 or 40 locations, it’d be pretty hard to figure out with pencil and paper, well, how many trucks do I need? And which truck should go to which locations? And it looks like this kind of optimizes the answer to that? Could you talk through how somebody would use this milk run optimization?

Dirk Hanschur 21:57
Exactly. So the entire blue sector is related to transport optimization? Yeah, out of muqaam we can produce 100 different use cases. But we don’t do so yeah, it’s otherwise we confused the users. That’s why we have to genetic we have two genetic modules in it, which is tensor optimization and mocha optimization. However, we are also developing this just as a side note developing use case specific Route Optimization suites which is made for the for the specific use case what we have in here as a general one, the difference between transport optimization and out optimization and local optimization is in turn for optimization. I don’t have depth no more. It’s open field. Yeah. And it’s more abstract and in mukund, I have I have an connectivity to depths which means I need to filter the table first of all I need to all my posts I have second I need to fill my vehicle to vehicle coops I do have this means behind every group I need to define how many vehicles Do I have to buy the book? Yeah, what are the key KPIs of a vehicle like like like the average driving like the average speed profile or like the capacity of the search engine in terms of mathematical optimization in terms of maximum stop a vehicle into maximum driving time, vehicles can five but also also volume restriction in terms of weight volume product, and we have costs fixed vehicle costs, costs per stop dynamic vehicle costs, the cost per kilometer and Rwanda that is the vehicle top line. And then we have at the industrials table, we have the all those could be delivery, all those could be pickup order. So either you go in with addresses or again with latitude longitude. And if you do so, then then you’re behind every asset you need to feel what is what is it in terms of baitfish volume pallets, if you don’t have all of the features keep it empty. You’re putting zero in it right simple, that we have a time window for every delivery or pickup order in it, entity use case behind it. So it’s a full mathematical optimization and we say exactly yeah, which delivery order and which pickup order needs to be handled by which vehicle how many vehicles Do I need on the day which we will take which which order on and guards and enter 1000 services and full optimization with all the results tables and we bring it in also directly into a map normally, from a use case perspective, we target on, on on tactical planning. in that section. However, we have realized, especially also in Argentina, and in India, they are using it also for operational purposes. So they have no telematics systems, they have no other documentation, and they said this is the right tool, we can use it immediately. Enough patients and they let’s say they misuse it for operational purposes. But for us, it’s okay. They can they can do so it’s fine. We like it. Yeah. Like the purpose of but we have to we have to we have to use tactical planning and to answer on what is how many vehicles do I need? But also operational planning.

Will Bachman 25:23
Okay, great. So what you know, which which blue one should we should we talk about next we have last mile shortest path transport optimization and shipment analyzer, which which one would you like to talk about?

Dirk Hanschur 25:39
So that the next one is the potential optimizer. Okay. Yeah. And spot optimizer is similar, however, it’s abstract you have you have to locate you have vehicles, and you say, where we list and where a vehicle needs to end? If it needs to end somewhere. Yeah. And second, you have attended for all those with a pickup in the delivery date? So it’s abstract. Yeah. And the optimized the transport problem there. Yeah. The same, it’s the same, it’s, it’s working the same, they’re the same way. It’s just a different use case on that side. Yeah, it’s a normal longer video, there’s no more longer a link to depth interior interior, you can also do that, that the depth related things with the step one, however, the solvers are in the backdrop in the back end or not, you’re fine tuned for that left side, but you can do both cases in one case also in the other Vanya. We have also if if a tour is already known. Yeah, an element out of Millikan optimization is not only to evolve an order to a vehicle, but also to tell the vehicle exactly the route the vehicle has to take. So the sequence if you know that in this element, we pulled it out. And we put it in shortest path This is the easy front panel how we call it This means if you know that the vehicle already if you know to AutoZone a week already you can plan it directly from your own to say what would be the shortest path in order to come to the to make this counter? Or to make this this this out? Yeah. eah. And shortest path is it Yeah, yes. And shortest path. It’s we’ve now got so it’s kind of spoiled by by Google Maps and other map tools that the shortest path between two points is now pretty easily available. But it gets a lot more complicated if you’re trying to make you know 12 deliveries across a neighborhood across the city, you know, which what order should you go in? And how should you make that whole route that that gets a lot more complicated. So, so, you’re helping exactly this is the main purpose on that I mean, just between two points you can do with distance calculations, but if you have 12 stops what will be the right sequence of the stops in order to type shortest kilometers This is what shortest path is doing. We have seen the more advanced one which is called last mile we need to rename the naming Yeah, we will call it last mile standard last mile go in future I guess. Yeah. In last night, oh, we are doing just the same, but we doing much more you can also change the the vehicle profile as alternations one sometimes in inner city distribution, they wanted to change the v2 profile, avoid tolls, avoid highways, avoid ferries, all that is possible. And this is now also based on on Channel including and considered edgy. And channel traffic situation Northern Light traffic situation is different with life traffic situation would be you always click on the button. Every time you click on the button, you get a different result. This is not what we like to have. That’s why we decided to put in general traffic engineers. And that’s considered in here.

Will Bachman 29:07
So these in the shortest path. So these kind of light blue want apps these five that we talked about are in general good for the tactical say Delivery Manager at a company that is trying to assign what shipments go on what trucks or what pickups go to what trucks and what order they should be done in to kind of evened out the workload and make the the trips as as optimal as possible I can, I can easily imagine. You know how that could be used. Let’s, let’s go to the next one, which is the set of kind of turquoise kind of colors. Green color color. There’s, I guess six six of these location planning network design nearest warehouses, center of gravity.

Dirk Hanschur 29:59
center gravity plus and flow visualization. Which one of those? Should we start at? Maybe? What’s the goal? What’s the purpose or use case for for these for these apps. Also here, our concept is always follow always want printable printable bonus, we will have an easy to perform gamma, which can be used by 95% of the users worldwide. Then we have a more advanced version. And we have an expert version on Yeah, this is this is our our philosophy behind that if we start with the easy front runner, easy formula would be center of gravity, you can just click Buy, you can just if you buy Yup, it’s very simple clicks reflejo standoff cavity. Yeah. Based on one value fields, we call this right, but you can fill all the different value fields, just type in a bunch of addresses this advantage, and you get a sense of cavity. Yeah. The good thing is in here is it’s not only one center, you can decide you can also say give me give me five or give me 10. Or give me 20%. of Yeah, this becomes interesting, then, yeah. The center of gravity blast, it’s the same but a little bit more, we have not only one Vantage field, we have multiple Vantage, multiple fields, for example, by volume revenue, yeah. And those fields you can you can make you can say which which field it is, needs to be considered in how many percentage in location planning. This is no not no more longer going on pure transportation activity, it is now full mathematical optimization, it will answer the question, how many warehouses do I need? Where should I be located? how big should they be? This means from an input data structure. Again, three tables. First of all, you have the sources we have we call the factory, but it’s in principle, its sources, where are the goods coming from? Yeah, second, the sink. So where are the goods? Going to? Yeah, the auto for customer. And you can also you have now the possibility to if you know it, from which factory? For example, if you talk about technology in which factory or supplier, and customers getting volume formed, and you can fill it if you keep it empty, then the default also the sourcing problem. Yeah. It so those are those are the two tables, the third table will be potential warehouses and potential warehouses you can pull as much as warehouses you want. Yeah. And in that warehouse, you you fill the warehouse capacity to access the warehouse capacity. Yeah, minimum maximum capacity in terms of in terms of volume, and so on. Yeah. And you put all the the costs in it, meaning costs in terms of fixed warehousing costs, costs, power, power, power, power, throughput, and transportation outbound costs the same for the factory as well. Yeah. And then we have by end of the day, we have three cost curves. There, we have the inbound transportation costs, we have the warehousing costs, and we have the outbound transportation costs, and the state information, the system is now optimizing and selecting the right number of warehouses at the right location to really come to an optimal supply chain structure. Yeah, and you can in the in the settings, you can choose please, please look between five and 10 browsers, for example. And then there will be the range where the solver is acting, but you can make it open more open, of course, yeah. That is that location setting. You need to however you need to type in the cost by yourself. Location planning is similar, but we will also might be doing and cost optimization. However, we have started this location planning and then we realized many companies would like to manipulate the cost. That’s why we have we made it open and as Developer Network photographer an open costs.

Will Bachman 34:11
That’s very cool.

Dirk Hanschur 34:12
So this would help somebody who is it slightly more strategic, it’s saying, when you’re selecting where you want your warehouses to be, and figuring out how many warehouses and where they should be to reduce your total cost of the whole system. It can help you executive does it?

Will Bachman 34:33
Does the system actually know? Is it is it a sort of telling you that you should go off and build a new warehouse in a given place? Or does it have a database of where existing warehouses actually are where you could rent space from? Because I could imagine it would be, you know, like, imagine one world with a less sophisticated system that would tell you you should build warehouse right here in the center of Manhattan. But you know, one, there’s no space for it and to the rent would be astronomical. So like, does it? Does it sort of take into account the actual rents of actual warehouses? Or is it more theoretically seeing here based on distance is what makes the most sense. But you, but you’d have to go see if you could actually find a warehouse in that area?

Dirk Hanschur 35:26
That is, that is a valid question. It’s a very important question. If you, for example, jump back to the center of gravity. You don’t need to give a bunch of warehouses perfect. Yeah, we just find on the greeting basis, potential locations. In network design, this is not the case you need to fill, you need to fill the table of potential warehouses where you now there will be warehouses available, you can also fill it with all your customer location. And then you don’t if they are really valid, then you get and maybe a more realistic picture, but you don’t have a more neutral picture, but you don’t have their house. Today, it is like that, that you need to fill and table of potential their houses with the warehousing figures. However, due to our marketplace, our Airbnb for warehousing, yeah, we will bring in here tomorrow also the data for also the data for existing idle space. Yeah. And we have an another app in it where you can already read, we have the data link made already where you can search for warehouses in our, in our platform. However, the density today is not that good enough that it really brings value to an stategic supply chain design. But long term, we will definitely bring it in today, you need to fill the warehouses by your own. Tomorrow, we were playing out and additional option where you can also select in addition to warehouses out of our marketplace. That’s, that’s amazing. So, you know, I imagined that the center gravity app alone, especially if you’re looking at a large area like Europe, and figuring out where should I have warehouses? And the answer is it tells you Oh, somewhere near Frankfurt, I mean, you’re gonna be able to find a warehouse, you know, in that area, it’s so but that’s even more amazing when you would be able to have the system Connect kind of in a Airbnb type of way to saying here is warehouses available with space to rent makes it even more useful. Let’s go to the next set of apps, the ones that are, I guess a little bit more ver chartreuse, or, or kind of yellowish color. There’s log hub, marketplace schedule optimization, ABC analysis, XYZ analysis, schedule visualization, what are these apps all about? We need to we need to say here, this is not for every particular episode in our new group for depth as it is today, the yellow group, maybe we’ll split it tomorrow. Yeah, so it’s not a strategic focus. But it is more than focusing on warehousing. But we can make in future different groups out of that we have today, the lock hub marketplace, this is you type in an address. Yeah, it gives you out. It gives you out the nearest warehouse out of our Airbnb platform. That’s cool. By the way, we have the same app, it’s not yet on the website, but it’s already deployed. We have to say map also also in the in the in the dark green section, strategic network design. It’s called needles warehouse, it’s not on the website yet again. But it’s the same principle. You type a list of warehouses and you type a list of addresses and you just go to tables input and you just say, Please show me the next warehouse in the area of a customer. Or please show me the next two balances all the next three or four warehouses. And in addition, you can select the radius in the radius of 2000 miles for example, your 1000 miles. That would be that would be possible is also fair to say that I covered that as well. It is not on the website. And this is similar to our marketplace, but the marketplace takes a look to into our Airbnb platform. The ABC x y set analysis guys go strongly in demand planning. Yeah, we have standardized ABC x y Zed, but we are still working on those things. So that will be it will be in both. Maybe we put it together. Yeah. But you can just it’s good to good to use as you don’t need to do it on your own and exhale, do you just upload the template and you get on through ABC and standardized ABC standardized xy set analysis on that. So for schedule visualization, it’s just an visual visualizer and to schedule optimization If you can optimize, and yeah, a bunch of resources within specific resource optimization, this can be, it can be we are using it, we have one use case in the warehouse. That’s why we bought it in the US. But it can also be used in a production environment.

Will Bachman 40:17
If you have, for example, one production job on different machines, how do you how do you organize it in a way that all your production shops run?

Dirk Hanschur 40:28
Very, very fast. In all your machine parts, the entire machine part is utilized in in the highest possible way, this mathematical optimization on that site? So those those light screen Won’t we have somehow cooked together, but in future, we will, we will, we have already ideas in what goes in which direction now? Let’s talk about this ABC analysis, which, which I had never heard of before. It says on the website, ABC analysis is an inventory categorization method, that consistent dividing items into three categories A, B, and C is the most valuable items C is the least valuable ones.

Will Bachman 41:06
I’ve never heard of this analysis before. When would someone do analysis like this? What How is this kind of analysis used in practice?

Dirk Hanschur 41:17
Yeah, it makes sense if you categorize your SK use between for example, the slow movers mid second high users movers and to do different replenishment policies on that. Yeah, what would be the right replenishment policy reform for the group of SKU there, you can do it SKU per SKU or your first of all COVID in different categories, it is not only we have put it out stand alone in here. Yeah. As you can use also standalone you can use it in different use cases, not only in demand planning, but also in our shirts. For example, sk use be located here, if you COVID in those different categories, and you can you can you can change the balderston that Yeah, then you know also maybe to see articles needs to be stored centrally, the diploma was immediately put in the in the in the central DC area, where f A and B, sk use or D SKU could be an original warehouse and also an eighth SKU in all small multiples, for example. Yeah. So there are different use cases on the walnut replenishment policies finding the right punishment processes. And on the other hand, also then then maturity thought yeah, so that’s why it’s a categorization and the categorization is is based on the SK use and then x y Zed it’s similar, but you have to additionally denote with the component. How often will it be? So it’s not just the quantity but also the date and how often does it detect that means that we should combine this post together? Yeah, we have some some ideas there how we how we how we how we go further how we bring the next step out there, and components on that we put and also we will we will build and complete the section demand planning Yeah. And in depth, we have 10 also elements like that, combined as a micro service in it. So the x y z organizes or classifies inventory items by how much they vary. So x items have very little variation, steady demand, z items have very high variation.

Will Bachman 43:39
In under what circumstances might you want to do that kind of analysis and what would you do with that information? What would you if you knew Okay, these are my x items, and these are my z items. What would accompany do with that?

Dirk Hanschur 43:56
Again, taking the right taking the right decisions also, either from a from an overall infrastructure design perspective, it should be located but also also in the warehouse itself here. So it will have also an influence to intralogistics later on. Yeah. Whenever we need to take the decision. Well, should we or should an article be located? Yeah. If you do, for example, shortest way optimization intervals itself in the box. Yeah. Then maybe you have a article on an article? Yeah, you’re very high volume, but it has been picked only one. Yeah. So how often do you pick and how often do you pick an article could be that you haven’t seen articles from a volume wise, but it is, it is it will be taken quite often but only one piece. And this would mean the position in the warehouse itself will not be somewhere in the end in the in the corner, but it needs to be on a position in the warehouse. Do you have shortest paths, it’s in the warehouse. So just and this goes then in the in the inside logistics part, where we will, in the future also focus on that, find the right positions in the valve. That’s really interesting. So, we might have two different items, both of which sell 100 units per month. But if one of them, we sell, you know, three items, every five items every work day, so you’re constantly like grabbing just one of them, you want those to be close at hand. And the other one, we sell 100 units at a time. So you know, you don’t need those clothes at hand, you can have those in the corner of the factory and you go grab a pallet of them, when you actually get an order, it helps you optimize your factory. So you have the the most commonly sold stuff, most frequently sold stuff.

Will Bachman 45:51
And most accessible. That’s pretty cool.

Dirk Hanschur 45:55
Exactly in this takes me directly into that discussion, you directly realize also, that the ideas of new apps, what we need to launch in future is is huge. Yeah, there are so many things which are not in which has to be in and which we need to work on in future. And the platform, how is it today is made for cloud is made for scalability. And that’s why it makes fun to to bring more and more apps out in that direction.

Will Bachman 46:27
Great. Now, let’s talk a little bit now and move away from the individual apps, and talk about how you have partnered with consulting firms, as well as even independent consultants. My understanding is that you will kind of arrange you kind of a deal with a consultant to be a reseller of your software. So a supply chain consultant out there, who does this kind of work with consultants regularly could establish a relationship with your firm and then, you know, kind of be a reseller to their clients. Could you talk to talk a little bit about how that works?

Dirk Hanschur 47:08
Yes, I will do so However, in before that, I will really in less than 30 seconds, put a focus also on the apps we have not covered yet, which is on the website, our forecasting and based on artificial intelligence. This is everybody globally, everybody is talking about industry. four, zero, everybody talking about artificial intelligence, machine learning neural networks. Most of them, they don’t have access to those technologies. And we bought it in Yeah, so with our apps, we have in standard portfolio in here, we will do more and more use cases on that basis on artificial intelligence. So you put in historical data in the arbitrary neural networks and give you and forecast out with multiple periods on basis of artificial intelligence. That’s why it’s important to save it already in and on that section. We do also take up a lot of dotnet apps. And also in future we have a lot of discussions currently going on where the company says we need a specific forecasting, we have specific forecasting issue and this your general forecasting module f you have in it, this is already good, but we need to pull out the last percentage and that’s why we do then we put more and more feature vectors or we call it in in the in the in the in the in the data, using for example temperature data, weather data or whatever you can imagine which is relevant for forecasting. And this then also goes into into n and into the time of training of a model of new neural network. It’s like this is also what we cover and can be used in all of this it can be used in demand planning can be used in forecasting for logistics activities or whatever. Yeah, finding the right stuff. How many staff how many people do I need in the warehouse next next week and there are many, many questions related to that. Now, coming back to your initial question, yeah. reseller the model is like that. Yeah. That we are currently at lockup building a global network of ventures problem. Centers partner however need to cover the entire product portfolio of lockup of us so it’s not only daps but it’s also Airbnb and all the artists and get full exclusivity for his territory can set up in that area only salon can set up on solution partners who are doing consulting shops for us as we be sell consulting towards to customers, however, we don’t do power ourselves. Also there we build up a network of of standardized consultants of consultants standardized in a standardized way. Yeah. On which we can to whom we can handle without check then if there is demand on that, yeah. And retailer retailer itself has in our, in our area as a public cloud product has no territorial jurisdiction. This means the reseller seller cancelled globally. Spot number one second reseller has now exclusive exclusivity in his country. Yeah, it’s a reseller, so we can set up multiple resellers. Yeah. Now is the system working? The entire model is based on a subscription model. Yeah, on that subscription model, the reseller will be participated. This means the reseller is allowed to get to give discounts. discounts on the on the on the global store, right. We have in the system. Yeah. So it usually comes down, but the apps can pull the credit cards through. This means he pays the store, right? Yeah. And the reseller is allowed to give discounts on that. Yeah. If he’s doing so the more discounts he gives, of course, the last few rounds. Yeah, that’s, that’s the concept. Of course, insane for us. Yeah. And he will be participated monthly on this means, as it is a subscription model, monthly subscription model, yeah, we will send the percentage to the reseller out there is there is an calculation all on, that’s how it will be calculated as he can go go down to a specific level. And in the first year, he gets from the from the lower level, he gets 7%. And he gets 70%. of everything, which is above that. This is the first year we call it a deal commission. The second year is the second year is keeping commission. Yeah, it is 440. And this goes long term as long as the contract is life. Yeah, and our contract, we have two types of contracts, we have a quality contract. This means maybe we have known that coming from different direction, believes in freedom and then drove on the free one. Everybody can register can register on free version, it’s unlimited, free of charge. However, the amount of data you can put in the system is limited. In the pro version, for example, distance calculation, you can calculate 20 distances in once. In the old version, you can take 1000s of distances in one, that’s the difference. In the pro version, we have two types. We have some quarter subscription, we call it the project subscription. After three months, it will be automatically downloaded to an to an free version again, and we have the annual one, the end your annual subscription will be automatically extended. If the user is not signing in time that the signing is working. It’s shutting under my account. Yeah. This means the seller will be participating in the monthly in the monthly subscription feeds, as long as the contract is coming. And this could be forever. Yeah. That is the model what we have behind them. Interesting.

Will Bachman 53:17
So so for someone who’s really doing a more one off analysis, to do the warehouse network design, they might only need the project, project subscription, right, where they’re just doing a one off, but somebody who’s using it for doing designing milk runs every day that might vary day to day, they probably need to sign up for the ongoing annual subscription.

Dirk Hanschur 53:45
Exactly, exactly. However, maybe one comment on the annual one, of course, we are open for negotiation? Yeah. Especially if you talk about a complex field for entire companies. Their intuition makes sense. If you talk, for example of more than five licenses, a company field could make sense already. It depends up to negotiations for cloud check subscription. It is of course, first of all, a little bit more expensive than the cost a bit more than than the annual one. Yeah. And but for the project subscription for the month. I mean, it’s that cheap. We don’t negotiate on that. Sure. Yeah, the user can decide to take it and after three months, it’s it’s cutting out again. Feel free. Right.

Will Bachman 54:29
Fantastic. Well, this is going to introduce me to a bunch of use cases and types of consulting projects that that kind of new to me. So this is this is fascinating discussion, Dirk. I wanted to know Oh, and where’s the best place for folks to find your company or if they wanted to get in touch with you directly? What’s the best way for people to contact you to follow up?

Dirk Hanschur 54:58
Yeah, they can call access directly, they can contact myself directly and we take it up and one of us is we can then on short notice doing immediately that demo, which takes about an hour. Yeah. And to go through the apps to to, to, to demonstrate also the easiness. How to use it. Yeah. And in that we can also talk about what we have next in the pipeline. But this is depending to what our customer needs a little bit. Yeah. So there was a change in prioritization, we open on that. And what also and this is also powerful, we need the feedback from the users today. All the feedback, we get, we try to, to fix it and and improve it. And, yeah, in large cases, we have their refund within 48 hours. And in most of the cases, we’ve made it within 24 hours. Yeah, this is so we haven’t quite good pace on that note. They can, can they they can get in contact with me directly. Yeah. Just drop me a note and we will get in contact with them. Great. And do you want to give an email address or how should people find find you? Yeah, they can. They can drop me an email on on tonsure@lockup.com. Yeah. So but it’s also under that? Yeah, they found my name, my address on website. And just just drop me a note and I will answer it.

Will Bachman 56:31
Fantastic. So it’s log dash hub.com. That’s l o g dash dash. H ub.com. Dirk, thanks so much for being on the show. It’s fascinating to hear about your software and, and, you know, thanks for walking us through it. Thanks for yours. Thanks for the time and it was a pleasure.

Related Episodes


JJ Kasper, Venture Capitalist

JJ Kasper, Venture Capitalist


Nicolai Chen Nielsen, Advisor, Author, & Entrepreneur

Nicolai Chen Nielsen, Advisor, Author, & Entrepreneur


Tom Critchlow, Writer and Strategy Consultant

Tom Critchlow


Author of The 2-Hour Cocktail Party

Nick Gray