Monday, 6 February 2017

4 Main Advantages Of Transportation Optimization Software To The Companies

By Douglas Wright


Food and beverage companies, and as well as those that are providing other types of goods have been using the transportation services. And since the technologies are now being developed, a new software is being produced for helping these businesses make easier and faster transactions. But with all of these advantages, there are still some businesses who are hard to be convinced in using these new tools.

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.

And for this reason, the on boarding new partners including suppliers, 3PLs, carriers, freight forwarders, banks, etc. Become more efficient and faster. It is because the connections exist already through the one to many approach. For sectors which involve the need for carriers to have specialized refrigeration equipment, leveraging carrier communities having industry specific expertise can add value.

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.

A carbon tax being considered as accessorial charge is one approach for this. According to optimization engines, this is done together with some variables so transportation costs can be minimized. Another approach are the distinct factors by different modes of transit including ocean, LTL, air, rail, etc.




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