Thursday, February 9, 2017

The 4 Benefits Of A Transportation Optimization Software To Companies

By Douglas Wright

It is very common for companies which involve beverage, food, and other goods to have their transportation services. These days, the advancement of technology has been arising continuously and companies are starting to adopt this advancement through using a software that can help for faster transactions. Though there are a lot of advantages, others are still making use of the old tools which can be inconvenient.

The model of cloud computing is commonly used nowadays. There are a lot of advantages being offered by this model, and thus, removing all those obstacles that are often experienced with traditional models. With this new model, businesses are now being able to access the transportation optimization software in high performance. The software plays an integral part in the processes of planning and executing. Here are the following improved areas of companies.

Carrier and private fleet selection. There are two different processes that are being used by logistics providers and shippers along with their assets. First is maximizing the use of the private fleets and minimizing the fuel costs and as well as the total distance. Second is selecting common carriers through the identification of lowest rates of each lane.

Through this, companies will be given the chance of optimizing the networks simultaneously for private fleet and for common carrier capacity. Optimization processes are made to be used more than once. Making a choice between the private fleets and the carriers are based on common costs including fuel and capacity. Businesses cannot avoid on thinking about what ifs. The stimulation is being done anytime to determine how the changes have caused effects to a network.

Inbound to outbound consolidation. Optimizing both the inbound and the outbound simultaneously along with some additional opportunities for minimizing the deadhead and for leveraging the back hauls can make the ROI become more attractive. It can add a tremendous value as well with a delivery model of direct to store. Planning and executing the shipments and maintaining a high level of service can differentiate the small and the medium sized businesses.

One to many connection. Transportation optimization is not just about one, single enterprise. There are already some inherent advantages of cloud based platforms in exchanging the information between partners having a trade. There is already an increase in the number of shippers and logistics providers using the platform, and thus, the number of carriers interacting with these people in a network is increasing as well.

Because of this, the new partners who are on boarding such as 3PLs, freight forwarders, suppliers, carriers, banks, etc. Are becoming faster and more efficient. The reason is due to the existing connections through a one to many technique. Leveraging carrier communities may add value to sectors in which carriers are needed to have a specialized refrigeration equipment, as long as these have an expertise which is industry specific.

Sustainability. It is the major point of selling for industries for food and beverage. With this, a carbon print is reduced. Documenting the results is also an advantage using the optimization tools.

One common approach for this is using carbon tax as accessorial charge. This is being considered by an optimization engine as with the other variables for minimizing transportation costs. Another common approach is using distinct factors through the modes of transit such as rail, air, LTL, ocean, etc.

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