Article

The Case for Intelligent Transportation Optimization and Modeling

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

Rising logistics complexities and service level expectations have made optimized 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 optimization and transportation modeling, engineered with AI and machine learning, are powerful tools helping organizations reduce transportation costs, improve service levels, automate processes, streamline execution and lower operational risk.

Optimize for greater speed and lower costs

A modern TMS should include both operational and strategic planning capabilities. Operational planning delivers real-time optimization that adjusts to match the dynamic nature of today’s supply chain, while strategic planning helps companies 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 analyze 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 optimization can be used for both operational and strategic planning and allows real-time refinement and execution of inbound, outbound and intercompany shipments – whether they are domestic or international. This results in load plans and routing efficiencies that boost service and improve asset utilization while lowering overall freight costs and reducing your carbon footprint.

Creating a more profitable future with transportation modeling

Transportation modeling creates the opportunity to challenge assumptions and test new ideas in any transportation network. Using “what-if” scenarios, transportation modeling 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 modeling provides a look into infinite versions of the future. Research shows that insights provided by robust transportation modeling produce an average reduction of five to 10 percent in miles and an average increase of two to five percent in trailer utilization.

Transportation modeling allows 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. Modeling 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 optimization 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 modeling looks beyond financial impact alone to analyze  total cost, service level improvements and resource requirements, from a holistic perspective. When proposing a new transportation policy, model it before implementing it.

Transportation Optimization and Transportation Modeling 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 standard with advanced optimization and modeling technology.

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

Push Possible®.

To learn more, visit manh.com/tms.

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