Transplace Scenario Pro TechnologySM (SPT), the brain of the transportation management system, provides optimization solutions such as mode selection, LTL consolidation, optimal carrier assignment, continuous moves matching and shipment routing. In addition, it is the essential tool used by Transplace Engineers in analyzing and developing client-specific solutions, network design and optimization, site selection analysis and product flow analysis. SPT is developed and owned by Transplace; therefore, enhancements to meet client-specific needs can be quickly developed.
SPT was developed internally to overcome obvious limitations of current market products. Transplace is relieved of the burden of waiting for new releases from an outside software company. Because Transplace software is maintained internally, our clients can immediately realize benefits, improving their savings potential. With SPT, necessary tools are identified and added within days. Transplace has created industry-leading analysis and optimization tools that quickly benchmark transportation flows. Transplace can perform quality benchmark design and analysis using this state-of-the-art tool, as well as using SPT on a daily basis at the operational level to provide the savings identified through initial design and analysis. SPT has many algorithms that can assist in identifying cost-effective network solutions.
The Transplace logistics system is designed for flexible integration with a client’s system. Our clients use a variety of ERP systems including SAP, Baan and proprietary systems. The system is also interfaced with Manugistics manufacturing and production applications to provide transportation and distribution. The system contains industry-leading algorithms, which provide robust and comprehensive logistics management and optimization. One of its essential features is freight optimization. The Transplace system can be applied to a client’s shipments to meet any specifications. Transplace Freight Optimization Module utilizes complex algorithms to arrive at the most cost-effective shipment configurations and assignments. These algorithms reside in SPT.
Mode Analysis and Selection
Mode selection analyzes the cost and services requirements for shipments and recommends the optimal mode. In the case of a truckload shipment mode analysis, Transplace logistics management system automatically searches for an intermodal rate and service requirement. If the intermodal mode will meet transit requirements, the load is tendered to move using the lowest cost intermodal provider. This process also applies to LTL versus TL shipment mode analysis.
LTL Consolidation
Less than truckload (LTL) orders are automatically pre-consolidated. If a client has multiple orders moving in the same timeframe and same origin/destination, the system will combine them. Each shipment is then auto-rated using both LTL and TL rates stored in the system. These shipments are passed to SPT for LTL mode selection optimization. SPT then consolidates individual shipments into optimal multi-stop truckloads or pool distribution loads. The lowest cost solution will be returned to the order management module for execution. SPT is customized to pre-group orders by static routes.
Optimal Carrier Selection
Another tool available to a client is optimal carrier selection. The algorithms incorporated into Transplace transportation management system process five main data items:
- Client loads for the period
- Carrier capacity commitment for the period
- Carrier’s applicable transportation rate matrix
- Any specific client carrier volume commitments for the period
- Carrier performance index
When carrier selection is performed manually, optimization can be performed on the first eight to ten loads with a reasonable degree of success. In large volume shipping locations, a manual process will result in higher overall transportation cost. This is due to time limitations on complete shipment analysis for carrier assignment. SPT technology optimizes the freight mix for any designated period, providing the minimal total transportation cost for the period regardless of the number of shipments. Built into this process is the ability to provide preferred carrier override selection due to specified customer routing or other needs.
Routing and Scheduling Optimization
Part of the mode selection process for LTL shipments is optimal dynamic routing. The Transplace transportation management system utilizes sophisticated routing algorithms to determine and execute routing and scheduling of shipments. This tool also examines shipment data to locate milk-run analysis algorithms to identify opportunities for dedicated environments.
SPT Advantages
Another advantage to SPT is the short learning curve. Where other tools used in analysis and design can take many months to master, Transplace personnel introduced to SPT are comfortable in operating the application within a matter of two to three weeks. The success of this software technology is not only evident in the preliminary analysis of a customer’s distribution network, but also in the success of project teams on a daily operational basis. It provides a quick and effective decision support tool that project teams can utilize to analyze trends and make decisions in dynamic environments.
Optimal Carrier Assignment OCA
OCA is a procedure that utilizes a mathematical optimization algorithm to help minimize the total transportation cost in a situation where there is limited capacity (i.e. number of trucks available for pickup) from the contracted carriers. For example, Carrier A might be the primary carrier for several lanes according to the routing guide, but it might only have two trucks available. The question now is: out of so many outbound loads, which two loads would be assigned to this carrier? If we strictly followed the routing guide, we would assign the low-cost carriers for the first few loads and end up using very expensive carriers for later loads. The total transportation cost may not be the minimum. A smart traffic manager would look at the entire list of loads and save the relatively low-cost carrier capacity for later loads. This manual approach may work when there is a small number of, say five, loads. When the number of loads becomes large, it would not be possible to manually make the carrier assignment and still achieve total minimum costs. This is where our mathematical optimization algorithm comes in. OCA takes the all loads, carrier lane rates and available capacity into consideration simultaneously, and determines the assignment of loads to available carrier capacity to ensure that the total cost is minimized.
