Shippers often struggle to develop robust transportation policies because it’s difficult to evaluate the effect of uncertainty and variability on their network. The problem is averages rarely reflect reality, yet most analysts still rely heavily on statistical averages.
With new suppliers and customers, store openings and closings, rate fluctuations, increasing service-level expectations, seasonality, business disruptions, and varying order quantities, every element of the supply chain is a moving target. Unfortunately,an optimally configured transportation solution today isn’t necessarily the optimal transportation solution for tomorrow.
To stay ahead, transportation professionals need a solution that can think strategically as well as execute optimally, ensuring the transportation network is always operating at the lowest cost and highest service levels.
Our Transportation Modeling software included in our Transportation Planning and Execution solution allows you to develop a policy that combines the best of both worlds—optimization modeling to make cost-based decisions along with the flexibility of a simulation framework to address supply chain variability and evaluate decisions over time.
The technology also combines stochastic optimization and simulation, which enables analysts to incorporate known variability.
With Transportation Modeling from Manhattan Associates you can:
- Proactively find innovative savings opportunities
- Make the best transportation policy decisions
- Measure the service and cost impact of various options
- Reduce costs
- Improve service levels
- Continuously optimize the network
Optimize your network by accounting for:
- Facility location and network design: determine which DC should serve which store for which products
- Delivery schedule optimization: open/closed stores, disruptions, model surge demand, holiday season
- Delivery window optimization: when to deliver good to each store
- Static route generation: DC labor and handling costs and distance-based transportation cost
- Pre-paid versus collect: determine which vendors and rates should be converted from prepaid to collect
- Consolidation: determine which engine parameters to use, evaluate different modes and rates
Transportation Modeling offers proprietary algorithms and scenario planning tools that remove complexity while providing great flexibility. With sophisticated simulations that use historic and forecasted data, the solution validates and optimizes what-if scenarios.
The Competitive Advantages of Transportation Modeling
Armed with this actionable intelligence, the status quo doesn’t stand a chance. Responding to volatility and implementing change becomes a task as common as tendering freight, with easily justified decisions and minimal impact to the business. With Transportation Modeling companies leap ahead of the competition by allowing transportation planners to step out of the day-to-day mayhem of troubleshooting transportation problems and into the realm of strategic and tactical planning.
The result is optimal execution today and tomorrow.