The Logistics of Logistics Predict and Prevent Freight Damage with Ilya Preston
Ilya Preston and Joe Lynch discuss ways to predict and prevent freight damage. Freight damage is not only expensive and upsetting to customers, but it is also ridiculously hard to figure out where, when, and how it occurred. Ilya's company, Paxafe creates sensors that enable companies to determine when, where, and how shipments were damaged.
About Ilya PrestonIlya Preston is the Co-founder and CEO of PAXAFE. Ilya was formerly a strategy and operations management consultant within the Big 4 with both PwC and KPMG, advising Fortune 1000 clients across healthcare, technology, and private equity verticals. Prior to his time in consulting, Ilya was a Supply Chain Strategy Manager at Cummins Inc, where he oversaw $100M in spend and was responsible for developing the commodity strategy for sheet metal fabrication and raw metal purchases. Ilya earned a Bachelor of Science in International Business from the University of Indianapolis.
About PAXAFEPAXAFE predicts adverse events through the supply chain to de-risk B2B shipments and enable intelligent cargo insurance. By building machine learning models that properly diagnose and label excursions, PAXAFE is uniquely positioned to leverage more granular, contextual data to accurately identify when, where and under which conditions future adverse events are likely to occur. PAXAFE has developed an intelligence platform – CONTXT - that leverages near real-time telematics, third-party and ERP data to provide a digital twin to the physical supply chain capable of answering who, what, when, where, how, and why. CONTXT enables shippers, 3PLs / carriers and insurance providers the ability to intercept at-risk shipments, automate claim diagnosis and root cause analysis, and improve loss ratios via improved underwriting. PAXAFE's platform decreases cargo loss while improving operational efficiencies. PAXAFE - a venture-backed C-Corp - is a graduate of gener8tor Accelerator, was a 2019 Accelerate Michigan startup competition finalist and a 2020 ACORD InsurTech Challenge finalist, and is a top 20 Wisconsin startup to watch in 2020 and 2021. PAXAFE is currently a part of the Creative Destruction Lab (CDL) - Risk stream.
Key Takeaways: Predict and Prevent Freight Damage- Freight damage and loss are extremely upsetting to shippers, transportation providers, and end customers.
- Additionally, freight damage and loss are very expensive.
- Every time a shipment is damaged or lost and freight claim is created, somebody must determine when, where, and how it happened.
- The company or person who was responsible is sometimes very hard to determine, and let's face it most people will not want to take responsibility for the screw-up.
- In the interview, Ilya explains how his company has created small, affordable sensors that can be added to the shipment and precisely determine when and where the shipment was damaged, assuming the shipment is damaged.
- Additionally, the sensors can provide additional insights into the damage like whether the shipment was dropped or if it accelerated quickly during a truck spike stop.
- This additional context that the sensors provide enables shippers and transportation providers to analyze damaged shipment and then improve the process to prevent future damage.
- Lost shipments with the included sensors are usually easily found.
- In addition, PAXAFE has created temperature sensors that can prevent temperature excursions that lead to food damage.