Challenges - Shippers - Operational Network Optimization
Decisions are based on incomplete, partial information. Inability to efficiently respond to events. Loads are not optimized for profitability. Deliveries lack integration with customer facility requirements and production needs.
When it comes to transport planning, companies are inherently in somewhat of a bind. By delegating transport planning needs to partners, companies lose out on the chance to optimize their transport costs by maximizing capacity and selecting the most cost-efficient providers within sub-areas. On the other hand, companies take often lack professional system support to undertake transport planning on their own.
There are many tools on the market that provide route & tour planning or give a choice of tariff-based offers of carriers, but finding the right balance between truck routing and tariff based forwarder selection is often a task that cannot be fulfilled by one software provider. The result is that potential savings are lost or, lacking an appropriate support system, the decision-making process itself becomes very resource-intensive.
Businesses need a solution that allows them to flexibly define the way cross docks and forwarders are used while aiding the decision to establish FTLs or milk-runs, either on a fixed base or in dynamic ways. The era of “one-process-fits-all” transport logistics is over, and companies needs a solution that simplifies decision-making in the face of complex interrelations between customers, products, and logistics. Today, decisions must be made with an understanding of all potential scenarios and the correlations between different shipment orders, even between multiple business units, product families, and types of business.