Transportation managers are constantly striving to optimize load plans and routes to ensure efficiency and cost-effectiveness. One of the key factors influencing their decisions is the range of carrier rates available, which play a significant role in determining the mode chosen for freight movement.
Imagine a bustling warehouse in Dulles, VA, where a shipping manager is tasked with moving an 8,000 lbs. load to Atlanta, GA. Traditionally, the shipping manager relied on rules of thumb to make decisions: packages under 150 lbs. went with small package carriers, while shipments occupying half the trailer and weighing less than 12,000 lbs. were shipped as LTL. However, these guidelines often led to less-than-optimal choices, costing the company both time and money.
The Power of Multi-Carrier Optimization
Recently, the shipping manager implemented a multi-carrier optimization system, revolutionizing their approach. This system eliminates guesswork by comparing all carrier modes and options in real-time, ensuring the selection of the optimal mode and carrier. With this advanced tool, the shipping manager can now easily determine the best way to ship the 8,000 lbs. load.
As they input the shipment details into the system, it evaluates multiple carrier rates and considers various factors, such as the OD pair and the dynamic crossover point where LTL shipments become more expensive than a full truckload. The system reveals that choosing Carrier A or Carrier C would result in a truckload shipment, while selecting Carrier B or Carrier D would mean an LTL shipment.
The shipping manager recalls a similar situation a few weeks ago when they had to ship a large LTL load to a different location. The traditional rules of thumb would have led them to select an LTL carrier, but the optimization system suggested a full truckload instead, saving the company a significant amount of money. This experience highlights how much easier and cost-effective their job has become with this technology.
Enhancing Load and Route Optimization
By leveraging load optimization and route optimization, the shipping manager ensures that every shipment is handled in the most efficient and cost-effective manner. The real-time comparisons provided by the multi-carrier optimization system empower them to make informed decisions, ultimately benefiting the company’s bottom line and enhancing customer satisfaction.
A Real-World Example
Consider an 8,000 lbs. shipment going from Dulles VA to Atlanta, GA. The selected carrier will determine the mode:
- Choosing Carrier A and Carrier C would result in a truckload shipment.
- Choosing Carrier B and Carrier D results in the shipment going LTL.
In the ever-evolving logistics industry, where every decision can impact overall efficiency and cost, tools like these are invaluable. They not only streamline the process but also allow shipping managers to focus on what truly matters: delivering goods on time and within budget.
