Why You Need Transportation Optimization (And the Steps To Get There)

The shipping and transportation industry moves quickly. New services — as well as challenges — emerge in the marketplace on a consistent basis. That makes it imperative for shippers to constantly look out for solutions that make it easier to move product and keep customers happy. One way that shippers can stay ahead of the competition is through transportation optimization. This is the practice of analyzing and improving your supply chain with a focus on cutting costs, saving time and eliminating disruptions.

8 Steps to Transportation Optimization

GlobalTranz is an industry-leading third-party logistics (3PL) company that provides shippers of all sizes with fast and reliable transportation services across all major modes of freight. Below, we list the eight areas that shippers should focus on in their transportation optimization efforts.

Automation and Warehouse Location Optimization

Using robots and artificial intelligence in the warehouse for unloading pallets, picking, packing and fulfilling orders will improve accuracy and increase productivity and speed.

Consolidating Shipments for Transportation Route Optimization

To help with less-than-truckload (LTL) capacity issues and save on shipping costs, multiple orders heading for the same geographic area via LTL can be combined and delivered to a distribution center via full truckload (FTL) shipping. From there, the shipments can be separated and shipped to the destination by LTL freight.

Continuous Transportation Network Optimization

Using the same truck to deliver outgoing FTL freight shipments and returning with incoming shipments in a single route eliminates empty cargo space, reduces empty miles on the road, makes the most of a driver’s time and saves on shipping costs.

Utilizing Multiple Freight Carriers from a 3PL Network

Dispersing shipments through multiple carriers can keep freight moving in times of capacity shortages. A 3PL’s transportation management system (TMS) can identify available carriers, their rates and service options.

Intermodal Transportation Optimization Options

Businesses can combine different modes (multimodal) to take advantage of different speeds, reach and costs. Shipping by rail for most of the journey can save on expenses with final transport by truck to the distribution center.

Transportation Route Optimization and Planning

Using GPS tracking and real-time analytics on weather, traffic flow and distance to destinations will help carriers determine the best routes for their drivers. Plus, adding details on truck stops can eliminate driving off course for mandatory rest times.

Eliminating Bottlenecks Through Effective Scheduling

Strategically allocating inbound deliveries with pickups from outbound trucks can help the flow of traffic at your warehouse. You can use a TMS for orderly scheduling.

Utilize Warehouse Location in Shipping Strategy

The location of your warehouses can greatly impact delivery times. If you have multiple warehouses or distribution centers, shipping from locations nearer to the destination saves time and money.

Connect With the GlobalTranz Team of Transportation Optimization Experts

GlobalTranz is an industry-leading 3PL, providing best-in-class supply chain optimization and managed transportation solutions to businesses of all sizes across the nation. Our team of logistics experts will help analyze your supply chain, identifying opportunities to save money and maximize operational efficiencies. We’ll even determine optimal distribution sites and storage requirements to protect your products and help you optimize your efforts.

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