For shippers, finding ways to consolidate orders into shipments optimally and put them on the most efficient route with the fewest number of trucks required is a critical and time consuming task. With ever-increasing capacity constraints since the start of the pandemic and further exacerbated by seasonal crunches such as the produce season, improving Load Optimization capabilities has been one of the biggest areas for many in the industry. Even as rates for truckload dry van and reefer begin dropping from historic highs, packing multiple customer orders into the most ideal mode allows a greater quantity to be dispatched at once, greatly reducing both the costs for the shipper and the number of miles those shipments need to travel before reaching their destination.
In many cases, this consolidation of orders into shipments is a manual process done by an individual or team within the logistics department who utilize third-party software or spreadsheets outside of their Transportation Management System (TMS). Today, we are announcing the release of a Load Optimization feature that is built directly into our advanced TMS. This feature helps our customers significantly reduce the time it takes to plan and route shipments as well as the costs associated with moving them.
How does Load Optimization work to help shippers?
Shipwell’s Load Optimization feature leverages a proprietary algorithm to assess each individual order’s details, including size, weight, locations, pickup and delivery times. In a matter of seconds, the orders are consolidated into the most cost-efficient routes and modes. By utilizing our integrated Pricing Intelligence tool, the feature is even capable of forecasting individual load rates and comparing them to optimized routes to provide a clear picture of the potential savings.
For customers, the feature eliminates the need to manually import and export data from third-party planning tools, while shippers benefit from the ability to customize load plans the algorithm generates to ensure it matches their needs. Whenever an order is manually added or removed from a shipment plan, the algorithm automatically recalculates the cost and most efficient route for the shipment. This provides planners with immediate cost based implications when making modifications to the optimized plans.
“We used to spend 4-5 hours per week manually planning our shipments and looking for multi-stop truckload opportunities that would lower our shipping costs.”
“Shipwell’s Load Optimization feature has changed how we operate and has helped us uncover routes we wouldn’t have considered or realized were an option.”
-Debbie Lombardo, Shipping Manager at Tarrier Foods
Beta customers who we partnered with in developing this feature have seen savings of between 20-40% through consolidating their orders into FTL or LTL shipments and routing the trucks in the most efficient routes possible — all while ensuring delivery windows are met.
“Load Optimization makes it easy for me to find consolidation opportunities that save us money and minimize our shipping costs.”
“I had never scheduled freight before and Shipwell made the process so easy to learn and stay on top of all the moving pieces. After only a month of running freight, I now feel confident in my ability to work with carriers and know that I am getting the best rates.”
-Angela Steele, Head of Inventory & Planning at Crowd Cow
In addition to the time and cost savings, the efficient routing ensures the shippers can reduce the carbon footprint of their shipments. In one example, a beta customer was able to reduce the number of miles driven for a single batch of shipments by over 2,700 miles, saving over 10,000 pounds of carbon emissions.
From produce shippers looking for the most efficient route to get the freshest possible products to market, to companies searching for ways to reduce the number of carriers needed to fulfill their orders, and to those looking to save time or reduce their carbon footprint, Shipwell’s Load Optimization feature can help you to meet your goals. To learn more about the ways that Shipwell enables shippers to efficiently plan and route shipments, request a demo today.
Shipwell customers can access Load Optimization today, directly on the TMS platform and should reach out to their Customer Success Manager for more information.