Route Optimization

How to Optimize Route Planning

One of the most effective tools for optimizing routes is Transportation Management System (TMS) technology. Logistics brokers like TLI, with their expertise in leveraging shipping software technology, have emerged as crucial partners for shippers looking to enhance their supply chain efficiency. In this article, we will explore how logistics brokers can help shippers optimize routes by combining partial truckloads into dedicated loads, consolidating inbound raw materials, and selecting the least-cost provider carrier through dynamic routing guides.

Combining Partial Truckloads into Dedicated Loads

Consolidating Inbound Raw Materials

Inbound raw materials play a vital role in the manufacturing and production process. The logistics broker can collaborate closely with the procurement department of the shipper to consolidate these raw materials efficiently. By integrating the procurement process with TMS technology, brokers can coordinate the arrival of various raw materials, optimizing the timing and quantities to minimize storage and handling costs. This strategic approach not only improves the supply chain's efficiency but also reduces the need for excess inventory, saving on storage and carrying costs.

Utilizing TMS Rating Engine for Least-Cost Carrier Selection

The TMS rating engine is a valuable tool in the logistics broker's arsenal, allowing them to select the least-cost provider carrier for each shipment. This technology calculates rates, taking into account various factors such as distance, weight, shipping class, and carrier performance. By analyzing these factors and comparing them across multiple carriers, brokers can ensure that shippers consistently choose the most cost-effective option, maximizing cost savings while maintaining service quality.

Dynamic Routing Guides

Dynamic routing guides are another feature of TMS technology that logistics brokers employ to optimize routes for shippers. These guides provide real-time insights and recommendations for routing, factoring in variables like traffic, weather, and carrier availability. As conditions change, dynamic routing guides help brokers adapt and make informed decisions on the most efficient routes for each shipment. This agility is especially important when dealing with unexpected disruptions, ensuring that goods reach their destination on time and in the most cost-effective manner.

Route Optimization

Logistics brokers, armed with advanced TMS technology, play a crucial role in helping shippers optimize routes and improve their overall transportation and logistics operations. By combining partial truckloads into dedicated loads, consolidating inbound raw materials, and leveraging the TMS rating engine and dynamic routing guides, logistics brokers can help shippers reduce costs, increase efficiency, and maintain a competitive edge in their industry. The partnership between shippers and logistics brokers is essential for effectively consolidating loads and optimizing load planning.