Anticipating the Impact of Change Using Transportation Optimization
The transportation decisions a company makes can impact all aspects of its business, from customer satisfaction to product availability to general profitability. Driver shortages, changing regulations, fuel costs, global security concerns and the logistics challenges that a geographically dispersed transportation network faces can create complications, and managers must be prepared to address them. While managing an expansive transportation system isn’t easy, the importance cannot be overstated.
A sophisticated transportation management system (TMS) can help companies overcome the challenges of modern shipping. Transportation modeling technology, a key piece of any efficient TMS, is critical in helping shippers evaluate the effects of uncertainty and variability in their networks in order to effectively manage logistics across an entire dispersed ecosystem. Modeling helps users to understand and prepare for the impact of any potential changes before they are operationalized. These changes can range from expanding networks to carrier flux or even growing businesses, all of which require changes to logistics.
Addressing the Challenges of Modern Shipping
By utilizing transporation optimization and simulation, sophisticated transportation modeling technology can address the challenges of modern shipping. Essentially, shippers can model what their network might look like, allowing them to prepare and deploy resources as needed. An additional benefit of transportation modeling technology is that it enables companies to modify approaches to different shipping scenarios. Companies can then create models and review results through a user interface that includes maps and other graphical reporting. Additionally, various scenarios can be managed all at once in order to quantify both results and the impact of change.
Transportation Modeling Delivers Benefits
There are a number of benefits that can be realized by incorporating transportation modeling into a TMS strategy.
- Determine which distribution centers should service which stores for which specific products, especially in large networks, in order to optimize time, fuel and resources.
- Create the most productive delivery schedule for fleets, taking into account factors such as opened and closed stores, route disruptions and seasonal issues.
- Factor in delivery window optimization, determining the best time for product delivery based on store hours, traffic and other variables.
These examples represent only a few of the benefits that transportation modeling technology can deliver. The challenges of managing an international transportation system that spans continents, cultures, languages and laws are daunting and require the assistance of advanced technology. The insight provided by TMS enables managers to handle the challenges that await their drivers on the open road. Managers elude the risk of significant service disruptions, missed deliveries and unhappy customers as a result.