Article

The Case for Intelligent Transportation Optimisation and Modelling

By Dr. Kim Ross,
The Case for Intelligent Transportation Optimization and Modeling

Rising logistics complexities and service level expectations have made optimised transportation management essential for companies of all sizes, across all industries and geographies. And as the number of possibilities and constraints increases – and the volume of data explodes – enterprises need more help than ever before to make the best possible planning and execution decisions. Transportation optimisation and transportation modelling, engineered with AI and machine learning, are powerful tools helping organisations reduce transportation costs, improve service levels, automate processes, streamline execution and lower operational risk.

Optimise for greater speed and lower costs

A modern TMS should include both operational and strategic planning capabilities. Operational planning delivers real-time optimisation that adjusts to match the dynamic nature of today’s supply chain, while strategic planning helps companies to see what’s coming and determine the most optimal transportation network configuration. By easily identifying optimal modes, carriers, service levels, rates and routes, companies are able to analyse shipments, costs, carrier contracts and other variables/constraints. So, no matter how complex or large the network is, capacity is ensured for shipments across all modes and locations – from freight forwarders, parcel providers and common carriers to dedicated and private fleets.

Advanced transportation optimisation can be used for both operational and strategic planning and allows real-time refinement and execution of inbound, outbound and inter-company shipments – whether they are domestic or international. This results in load plans and routing efficiencies that boost service and improve asset utilisation while lowering overall freight costs and reducing your carbon footprint.

Creating a more profitable future with transportation modelling

Transportation modelling creates the opportunity to challenge assumptions and test new ideas in any transportation network. Using 'what-if' scenarios, transportation modelling can propose network configuration changes and alternative routing options can be tested to see the effects – before any decisions are made. By using advanced algorithms and scenario planning tools, and applying machine learning to real-world data, transportation modelling provides a look into infinite versions of the future. Research shows that insights provided by robust transportation modelling produce an average reduction of five to ten per cent in miles, and an average increase of two to five per cent in trailer utilisation.

Transportation modelling allows companies to:
  • Make better business decisions: Expanding numbers of customer locations, additional carrier and driver capacity restrictions, erratic fuel costs, hours of service changes and shifting third-party transportation rates all affect the bottom line. 'Historical averages' are no longer good enough to project the effects that changes in policy could have on transportation networks. Modelling gives you more.
  • Drive down transportation costs: When approaching network capacity, critical questions emerge. How should resources be aligned? Where should a new DC be added to get the most benefit? How can service levels and profits be maintained? Scenario-based optimisation capabilities, focused on specific supply chain and network design problems, are now required.
  • Measure twice, cut once: The decisions and assumptions that have always been made are no longer necessarily the best ones. Transportation modelling looks beyond financial impact alone to analyse total cost, service level improvements and resource requirements, from a holistic perspective. When proposing a new transportation policy, it can be modelled before implementation.

Transportation Optimisation and Transportation Modelling within Manhattan TMS

Building a more efficient transportation network requires an advanced TMS that can continuously learn and adjust. Engineered from 30 years of experience solving the world’s most complex transportation issues, Manhattan TMS comes as standard with advanced optimisation and modelling technology.

Improve operations. Cut miles. Locate capacity. Lower costs. Exceed service levels. Explore possibilities. With Transportation Optimisation and Transportation Modelling within Manhattan TMS, you’re able to see the future. And it is very bright indeed.

Push Possible®.

To find out more, visit manh.co.uk/tms.

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