Optimized load planning is fundamental to improving your service and revenue.

Could your company be wasting money on a logistics strategy that doesn’t work? Efficient load planning is more critical than ever and a key performance area for any supply chain. Ideally, you want to be able to move your product to your customers while maintaining desired service levels in the most efficient way. Logistics optimization strategies such as improving your load planning processes can be an effective way to reduce freight costs by as much as 10 to 40 percent.

While this sounds great, load planning can be a very manual and time-consuming process. A transportation management system (TMS), specifically one that includes a freight optimization tool, is one way to analyze and take your load planning process from hours of manual work to minutes through automation and technology.

COMMON LOAD PLANNING TMS MISCONCEPTIONS

Before we dive into how a TMS can help you with your load planning, perhaps you’ve thought of one of these common misconceptions.

A TMS Optimizes on Its Own

First off, not all TMS platforms are the same. Some may not even offer load planning tools. It’s also important to see what kind of support is offered, as having an expert available can help provide you with more insight than the software alone.

The Optimized Load Plan Will Be Perfect Every Time

Technology is a great tool to make your logistics processes more efficient. The word to remember here is “tool”. Even a TMS with a freight optimization tool can overlook certain opportunities for freight consolidation, so it’s important to always treat your transportation technology as an aid to your load planning process and not as a full replacement for it.  

BENEFITS OF OPTIMIZED LOAD PLANNING

• Cost Savings
• Higher profitability
• Improved logistics performance
• Improved logistics collaboration
• Improved customer service

HOW A TMS HELPS OPTIMIZE YOUR LOAD PLANNING

A TMS is a powerful tool for optimizing your load planning. A TMS provides you visibility into your entire logistics process. This allows you to monitor performance and create efficient plans. It helps you with your forecasting and planning so you can find cost-saving options. A TMS can help give you a clearer picture of your entire freight network by housing all your transportation information in one system.

Now, there is a lot of transportation management software out there. To gain the most benefit for your load planning process, you’ll want to make sure you select one with a freight optimization tool.

WHY WOULD I NEED A FREIGHT OPTIMIZATION TOOL?

Anyone who has gone through the process of figuring out how to reduce shipping costs for each of their loads knows how much of a pain it can truly be. The process starts with tracking down all your open shipments, deciding what loads should be moved together, and then building, rating, and tendering those loads manually. For those who have not implemented a TMS, this is usually done with paper and pencil or an Excel spreadsheet.

Many factors go into optimizing shipments, including the number of pallets and weight of each shipment (taking trailer size into consideration), delivery availability for locations, and special services needed.

Perhaps one of the most important dynamics of building a shipment is delivery deadlines. It’s imperative to take note of whether a truck can deliver to single or multiple locations and arrive on time, factoring in the drivers’ hours of service (HOS) and loading and unloading times.

In sum, it’s a like a complex jigsaw puzzle made up of your freight, and trying to figure it out alone can be difficult.

HOW CAN A FREIGHT OPTIMIZATION TOOL HELP ME?

The freight optimization tool in a TMS will take your list of open shipments and consolidate them into loads based on the criteria specified by you. The software’s criteria encompass ship and delivery date flexibility, maximum weight per shipment, the maximum number of pieces, the number of picks and drops, driver hours, and more.

You’re also able to choose which carriers you want to include for consideration. Once these parameters are set and the optimizer has been run, you also have the capability to auto-create loads in the TMS based on the optimizer’s results.

The optimizer tool accomplishes in minutes what usually takes a person hours to calculate and configure, with the likelihood of saving money in the meantime. The top benefits here translate to both time and money saved. Gone are the days of sitting at your desk for hours with a calculator and a headache.

In summary, our TMS (and other similar products) allow you to enter all your shipments, whether it’s 20 or 1000, and will automatically calculate the most efficient way to route your shipments by combining smaller shipments into multi-drop truckloads, keeping other shipments separate, and configuring the way it all gets routed across the country. The results of the freight optimization tool include the reported cost savings and a detailed report of the loads proposed.

START OPTIMIZING YOUR LOAD PLANNING WITH TRINITY’S TMS

Logistics optimization never ends. It is a continuous process only limited by your time, technology, and commitment to improvement. And ensuring your company has access to a best-in-class TMS is the key to starting that process and finding efficiencies.

Discover how Trinity’s TMS, including its freight optimization tool, can improve your logistics processes, like load planning, helping you offer better customer service and reduce costs while increasing revenue.

If you work in logistics, you’ve likely heard the term TMS before. TMS is the acronym of a transportation management system. A TMS is a software program that allows you to manage your entire supply chain, including your internal logistics department, suppliers, warehouses, carriers, vendors, etc. Having a TMS for your supply chain can help provide your company with greater visibility, better reporting, and improved performance through automating many manual processes. Many companies use a TMS for their logistics management, like e-commerce companies, retail businesses, manufacturers, distributors, even logistics service providers such as 3PLs (like us!). If you’re reading this article, more than likely you’re interested in a TMS but are hesitant. Let’s talk through some of those hesitancies and see if we can help resolve them.

TMS HESITANCY 1:  I WANT TO KEEP CONTROL. I FEAR OF LOSING MY ROLE IN LOGISTICS MANAGEMENT.

Most fear losing control of their logistics operations or that it won’t be done correctly. However, a best-in-class TMS allows you to decide the amount of control you would like to have. You can opt for a TMS that integrates with your current system, using your own carriers and rates. Or if you want to be more “hands-off” you can outsource your TMS with a 3PL that provides software, account management, and use of their carrier relationships and rates. If you’re in between, you can have help with account management but still be involved and a mix of your own carriers and rates and your 3PL’s carriers.

Even with all those options, no matter your role in logistics management, a TMS isn’t going to do it all for you. Instead, technology like a TMS simply helps you do your job more efficiently by automating those very manual and time-consuming tasks that we do every day!

TMS HESITANCY 2: IT COSTS TOO MUCH

This is often a misconception. With software as a service (Saas) and a cloud-based or web-based TMS, sometimes there are no costly up-front investments. It also means you won’t have to worry about having software installed on company servers and continuously managing updates.

It really depends on your logistics needs and the solutions your provider can offer you. At Trinity, we offer technology solutions for companies of all sizes and with different levels of services. A TMS can often end up saving you money in the long term by helping you better manage your freight spend and performance.

TMS HESITANCY 3: MY BUSINESS IS TOO SMALL. WE DON’T WANT TO MAKE ANY CHANGES.

No business is too small! And even if you don’t want anything to change in your process, change is inevitable as it will happen in your industry and business. Will your business be ready for when that happens?

It’s vital to adopt technology, like a TMS, into your business before you grow too fast rather than waiting until while you are growing quickly. What you have in place may work for now, but when your business really starts growing, the cost and time to manage your workload will be growing too. Can your process handle that?

We all know change can come quickly and unexpectedly, causing disruptions in our processes. 

A TMS can help you be better prepared and ready for any changes.

TMS HESITANCY 4: IT’S TOO COMPLICATED TO USE. WE TRIED IT BEFORE AND NO ONE WOULD USE IT. 

Some TMS’s can be difficult to navigate and if there’s not a lot of support, you may abandon it. But a best-in-class TMS should be user-friendly and configurable to the needs of each individual user. You should also have access to a support system that can help you when needed.

There’s a big difference between purchasing software to use from a company and working with a 3PL that offers it as a solution. Considering a 3PL often uses their own TMS, they’ll know how to use it and help you. Quality TMS providers will work with you to make sure the TMS meshes well with your other systems.

ARE YOU EXPERIENCING ANY OF THESE CHALLENGES?

Struggling With Keeping Your Quotes Organized

If you work with several different shipments, it can be time-consuming and overwhelming to be on the phone or going from website to website asking for rates from carriers in your network. Contacting all those carriers for your different shipments and keeping track of those quotes can take you away from the other important aspects of your business.

Managing and Selecting the Best Carriers

We know that not all shipment is the same. Some shipments need temperature control, require special delivery services, or need to be handled with extreme care. Because of that, not all shipments are handled by the same carrier. There are carriers best suited to handle all your shipment needs. However, managing them all can be difficult.

Keeping Track of Your Shipments

As mentioned above, most often all your freight is not hauled by the same carrier. It can be common for several different shipments to be in transit aboard different company trucks all over the country/world. Because of this, freight tracking can be challenging. Without a TMS, there will have to be someone entering shipment numbers into forms on several different carrier sites.

Not Getting Insight into Your Logistics

Without proper reporting from a TMS, it can be hard to gather data to determine which carrier was the cheapest throughout this past year. Or analyze which carrier had the best performance. Or find out what your freight costs were on certain lanes. 

Not all TMS’s may generate the reporting you need, but a best-in-class TMS can off you advanced reporting to go into specific logistics metrics. Without TMS technology to offer you data-driven insight into your business, can you really know how you are doing year after year?

STILL NOT READY TO COMMIT TO A TMS?

Say Hello to Trinity’s Customer Portal

We understand. Committing to a TMS can be a big change. We listened and heard you.

That’s why we now offer our Customer Portal for shippers working with Trinity. There’s no commitment, no additional charges, with a sample of TMS technology right at your fingertips.

Track your shipments, request quotes, view and pay invoices, or view and duplicate historical quotes. See how easy it is.

Start shipping with us today to gain access.

LOOKING FOR MORE?

Trinity’s Managed Transportation

We’re here and ready to help you with your logistics management. Our combination of experienced account management and best-in-class TMS technology offers you a customized solution to help achieve your unique supply chain goals. Through Trinity’s Managed Transportation, there’s no need to worry about an out-of-the-box solution that doesn’t fully meet your needs.

Whether you’re looking for Saas, a Managed TMS, a fully Integrated Outsource, or something in between, we’ll work with you to design a solution unique to your business, not the other way around. You’ll gain control, visibility, improved performance, reduce costs, and eliminate manual, time-consuming processes.

So, what do you have to lose?

Looking to learn more about Trinity’s unique TMS solutions? Schedule a risk-free live demo with Ryan O’Halloran to learn more about our customizable solutions.

AUTHOR: CHRISTINE MORRIS