All companies deal with stress in their
supply chains. But, while there are no easy solutions for many of the issues
we’re all dealing with, that doesn’t excuse logistics pros from trying to do
better.
Fixing everything can’t happen overnight, so
a better approach can be to focus on the slightly smaller things with the
potential for the largest impact. Not surprisingly, this is where logistics
technology can contribute — and often in ways companies have not considered.
At this point, most companies have some
amount of shipping software to take care of the transactional and task-oriented
parts of their logistics operations: tendering loads, managing rates, printing
BOLs, etc. But less taken advantage of is the technology that supports a more
complex part of logistics that can significantly lower costs and improve
delivery service. We’re talking about load planning and optimization software.
Load optimization is not typically included
in most entry- and mid-level TMS technology that many 3PLs and managed logistics
providers offer clients. However, the cost and performance improvements it facilitates
make it a must-have.
What are the benefits of load planning and
optimization software?
Most benefits come from the technology’s
ability to model complex scenarios and consider options a person can’t on their
own. For example, with load optimization software, the ideal routing plan can
be built to maximize cost reduction and service performance involving a high
number of carriers, rates, locations, and delivery transit times.
Considering all of these factors together looks
complex — and doing it and doing it well is even more complex. Customer
requirements, such as knowing how the product needs to be handled and the
constraints for making delivery at any consignee, will all impact the optimal
load plan. To start, dock receiving hours and any special delivery requirements
(e.g., liftgate, inside delivery) across the locations must be considered when
planning a truck’s route. When you multiply this type of complexity over dozens
or scores of daily shipments, the value of technology to assist in making the
best routing decision every time instantly becomes obvious.
Companies can also use load optimization
software to gain increased flexibility when responding to last-minute changes
or delays upstream in the supply chain, as it enables them to quickly consider new
information and update a load plan in real time. This ability includes modeling
scenarios for multimodal shipping plans to take advantage of what each mode has
to offer, while considering capacity constraints present in the marketplace at
the time.
How to determine
if you can benefit from load optimization software
As we mentioned, load optimization software is not an entry-level kind
of logistics technology and is not part of the typical “free” TMS systems a lot
of companies offer. But the benefits to companies shipping more than just a few
loads a day are legitimate. And the more unique your business is, the more
likely you are to realize the advantages of it.
Here’s an offer so you can evaluate if load optimization software can benefit
you. Visit TransImpact.com and get in touch with our Managed Logistics Team for
a demonstration. We’ll talk about how this specialized logistics technology can
support your business based on your company’s unique shipping patterns and
needs. You’ll quickly see the benefits and if the technology is a worthwhile
investment for you.