Cliff Sosin

things and you know if someone's done it well and sort of smart they can kind of figure it out and they can do a pretty decent job um but as you scale you're putting people into roles who you know may not be as good at this and um in 2021 in retrospect for the first time the business kind of in part because of covid in part because of the growth the businesses kind of reach outstripped its grasp from a process maturity perspective now in 2022 there's a software system

things and you know if someone's done it well and sort of smart they can kind of figure it out and they can do a pretty decent job um but as you scale you're putting people into roles who you know may not be as good at this and um in 2021 in retrospect for the first time the business kind of in part because of covid in part because of the growth the businesses kind of reach outstripped its grasp from a process maturity perspective now in 2022 there's a software system

And the software system tells you, this is how many people you need at these times of the day. And this is where you're going to put the cars. And here's your protocols. You're going to have a starter, like a jumper. You're going to keep it here. And this is how you do this. And it turns out that this set of protocols

And the software system tells you, this is how many people you need at these times of the day. And this is where you're going to put the cars. And here's your protocols. You're going to have a starter, like a jumper. You're going to keep it here. And this is how you do this. And it turns out that this set of protocols

locally and globally optimizes better than even the best people, but also makes sure that everybody, so it takes the best people, makes them better, and then takes everyone else and makes them almost as good as the best, right? That software had never been written, right? Because this was just not a function that someone had ever bought.

locally and globally optimizes better than even the best people, but also makes sure that everybody, so it takes the best people, makes them better, and then takes everyone else and makes them almost as good as the best, right? That software had never been written, right? Because this was just not a function that someone had ever bought.

Because think about how hard, that's in and of itself what I just described is a fairly meaningful like project, right? Before 2018, before 2019, I should say, the company bought almost all of its cars at auction. So the flow of cars was auction to IRC to customers. Starting in 2019, the company began buying cars in the public. And this has been a wildly successful thing.

Because think about how hard, that's in and of itself what I just described is a fairly meaningful like project, right? Before 2018, before 2019, I should say, the company bought almost all of its cars at auction. So the flow of cars was auction to IRC to customers. Starting in 2019, the company began buying cars in the public. And this has been a wildly successful thing.

They make a lot more money doing this. But it turns out that when you do that, you create the potential that if you buy more cars than your... If you have a node in your system, an IRC, it's possible, unless you've thought about this, for cars to accumulate at a node. You can be buying more cars than are leaving that system, or more cars can be transiting in than are leaving.

They make a lot more money doing this. But it turns out that when you do that, you create the potential that if you buy more cars than your... If you have a node in your system, an IRC, it's possible, unless you've thought about this, for cars to accumulate at a node. You can be buying more cars than are leaving that system, or more cars can be transiting in than are leaving.

And if you have finite amounts of parking, this can create congestion, right? And what had happened, what interestingly what happened for the first time in 2021 or so was the buying cars process became really successful. And they were buying more cars. For the first time they were buying.

And if you have finite amounts of parking, this can create congestion, right? And what had happened, what interestingly what happened for the first time in 2021 or so was the buying cars process became really successful. And they were buying more cars. For the first time they were buying.

And so now suddenly they had this shift in the logistics system, sort of reduce the, flip the direction of net flow. This is fine. You just need to build a bunch of things to change it. But like this is an example of the sort of thing that was happening all at the same time. A lot of this was covered up in 21 because they were hiring to beat the band.

And so now suddenly they had this shift in the logistics system, sort of reduce the, flip the direction of net flow. This is fine. You just need to build a bunch of things to change it. But like this is an example of the sort of thing that was happening all at the same time. A lot of this was covered up in 21 because they were hiring to beat the band.

And so when you have excess staffing, it kind of covers up a lot of blemishes. As you get into the end of 21, the first indication that something was wrong was, you know, slightly weak November. And then Omicron happened. Their whole system became a disaster. And the reason is that if you think about cars like a series of events that have to happen one after the other.

And so when you have excess staffing, it kind of covers up a lot of blemishes. As you get into the end of 21, the first indication that something was wrong was, you know, slightly weak November. And then Omicron happened. Their whole system became a disaster. And the reason is that if you think about cars like a series of events that have to happen one after the other.

if let's say you have a truck and the truck goes out 250 miles, switches with the driver and comes back. Well, if that driver calls in sick, like how does that truck route continue? Okay, so now you have nine cars that just got stranded somewhere, right? How do you get those cars moving again? And now this happens all the time, but like if this happens a lot,

if let's say you have a truck and the truck goes out 250 miles, switches with the driver and comes back. Well, if that driver calls in sick, like how does that truck route continue? Okay, so now you have nine cars that just got stranded somewhere, right? How do you get those cars moving again? And now this happens all the time, but like if this happens a lot,

you overwhelm your ability to clear these things. And now you have cars piling up in basically giant traffic jams throughout their whole system. And then your delivery times that you're promising on your website have to get way extended because you just can't. So your sales come way down.

you overwhelm your ability to clear these things. And now you have cars piling up in basically giant traffic jams throughout their whole system. And then your delivery times that you're promising on your website have to get way extended because you just can't. So your sales come way down.