Given rate structures and business constraints, we can perform a mode optimization analysis of your shipments. We can consider less-than-truckload (LTL), full-truckload (FTL), and railroad (Intermodal).
Our suite of optimization tools will find the most cost effective mode of transportation for all your shipments while honoring all service requirements. Shipping and delivery dates, capacities such as weight and volume, dock hours, and equipment types are some examples of the constraints we can adhere to while minimizing your overall transportation costs. Once our analysis demonstrates our ability to reduce your overall cost we can then implement an automated production solution.
Customers who utilize our mode optimization experience improved efficiencies that empower their transportation staff to make more cost effective decisions. We have a proven track record of impacting our customer's bottom line through lowering costs on a daily basis.
All orders are shipping into or shipping from the facility via LTL. Total cost for Scenario 1 is the sum of the individual LTL shipments cost = $3,225.
Two orders are consolidated into 1 FTL load, one order will move Intermodal, and the final order will remain LTL due to it's existing low cost. Total cost of Scenario 2 = $2,075 for a Savings of $1,150 over Scenario 1.
Continuous Moves Optimization
Our Continuous Move (CM) Optimization tool is a tour building application that identifies patterns within a given set of origins and destinations. The CM application generates multiple solutions. This tool can also be utilized to match your freight patterns with third party loads. Continuous Moves simplifies load planning and reduces overall costs within a transportation and distribution network.
This diagram represents a pattern that was identified within a given set of a single customer's data. Our continuous move optimization program linked 565 loads from Zone A traveling to Zone B, 565 loads traveling from Zone B to Zone C, and 565 loads traveling from Zone C back to Zone A. This enabled the creation of 565 tours comprised of 1695 loads.
This diagram represents additional loads from the same set of customer data that could create an additional 21 tours by deviating from the original date/time. The customer has 189 additional loads serviced within the same pattern.
This diagram also represents additional loads from the same set of customer data that could create an additional 100 tours by utilizing other 3rd party loads to complete the tour. The customer has two hundred additional loads serviced within the same pattern and may be able to participate in a revenue share opportunity for the 100 3rd Party loads.
In addition to being an invaluable analytical tool we also provide CM as a real time execution tool. Optimization will operate with or without resource considerations and under fleet or one-way situations.
Regardless of the size of the fleet your company is using, utilizing the fleet to the highest level of productivity is important to your transportation budget. We have several different modeling tools that will allow us to model your fleet through a variety of different scenarios. This will allow you to understand the potential benefit to your fleet before actually making any physical changes to your operation.
Some of the scenarios we can model:
- Impact Analysis on Network Changes
- Adjustment of store delivery hours
- Increasing/decreasing the unload rate per hour
- Utilization impact of increasing/decreasing the fleet size
- Adjustments in cube, weight, and carton capacities
- Team / solo analysis / slip seating
- Adjustments in driver home time
- Changes in Department of Transportation Regulations
- Adjustment of Distribution Center Operation Hours
- Modifying equipment types
Fleet Optimization can also be used as a real time routing solution.
Load Optimization tool assists customers in getting the maximum cube in their trailers. This tool utilizes user-specified loading rules, stacking limitations, package dimensions, crush weights, and weight restrictions. This enables our AIS team to improve your cube utilization and help save on your transportation costs.
Some examples of the types of scenarios we have run for customers include: product packaging changes, new SKU's, or improved load consolidation. We can model different scenarios that reduce the number of truckloads your company is shipping.
We will construct your daily delivery schedule to accommodate factors such as your company business rules, distribution and carrier workload, number of store deliveries per week, gap requirements, outbound delivery efficiency, and more. They can design your delivery schedule to have the highest truck utilization numbers possible, the best on time delivery schedule possible, driver home time requirements, safety requirements, or any combination of these factors.
The AIS team will analyze your current vendor base to identify better opportunities for backhaul runs, deadhead minimization, and vendor management. They will examine the opportunity to convert billing from pre-paid to collect in order promote flexible control of vendors and to take advantage of your inbound programs.
The AIS team can assist you in choosing new locations for distribution centers, cross-docks, warehouses and more using our Network Optimization tools. We can design an entirely new transportation network for you or find ways to improve upon your existing network. We can consider transportation, real estate, tax, and labor costs as well as demographic data in choosing a new facility.
Site Selection Example
The existing network consists of two distribution centers servicing all stores. The current distribution centers are exceeding capacity and the length of haul to the outlying points creates an extended order cycle.
In performing a Network Analysis it is determined that the network could benefit from an additional distribution center to both ease capacities in the existing distribution centers as well as reduce average stem miles from the distribution center to delivery locations.
The AIS team establishes operational partnerships that blend highly advanced supply chain management techniques to create a program that is custom designed to fulfill a specific set of requirements. Our experience has proven that placing analysts onsite can bring an outside view, or opinion to look at your transportation operation with a big picture perspective. This opportunity gives the analyst a valuable hands-on perspective allowing them to customize a Transportation Operational Overview document to your companies needs.
Our Transportation Operational Overview document can provide:
- A Current State Assessment
- Process Flow Documents
- System Flow Documents
- A Best Practices report with recommended improvements
- An estimate of potential savings
- A Phased Implementation approach for putting the improvement plan into operation
We assess your current processes and capabilities to compare them to industry standards, market pressures and future trends. We build on your strengths and make suggestions for improving weaknesses. We establish performance goals and can continually measure for improvements.
- Shortening of the pipeline or supply chain
- Formalized processes and procedures
- Improved scheduling and planning
- Better Load Planning
- Enhanced data exchange
- Reduction in Cost