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AdexinBlogHow to choose the best transport optimization software?

How to choose the best transport optimization software?

Jan 2, 2024
5 min

Summary

Optimizing transportation isn't an easy task. You need to consider many factors that shape the market and influence performance. Transportation, along with logistics and the supply chain, is all about the ability to plan and execute better. You must master managing available resources, which is not a simple practice regarding the combination of vehicles, drivers, and routes. Everything becomes more complicated without the right tools in hand. You must consider how to structure your data more efficiently to manage KPIs and other variables.

Smart technology embedded in transport optimization software can maximize your ability to manage various resources and provide real-time data tracking. Many more advantages come into play with a software solution. In this article, we have outlined particular factors on how you can choose the best optimization software for your transportation, logistics, and supply chain.

What are the goals of transport optimization?

Before you start evaluating your software provider, you really need to understand your business needs well. Despite the industrial complexity, you may have fairly similar targets in your business when running transportation, logistics, or supply chain operations.

The best way to understand your business goals is to reflect on your business challenges. In many cases, these are the ones you may want to overcome and tackle.

Here, we outlined several challenges of today's transportation, logistics, and supply chain:

Standardization

The lack of a single platform for managing various resources concerns problems in acquiring data and further planning.

Data flow

Problems with obtaining data cause the most interruptions in transport optimization. It's all about access to this data at the right moment to handle overall tasks much better.

Supply chain visibility

Maintaining visibility throughout the supply chain, from production to delivery, can be challenging. Lack of real-time information can lead to inefficiencies and delays.

Technology integration

Implementing and integrating advanced technologies, such as IoT, blockchain, and AI, into transportation and logistics systems can be complex but critical to optimizing operations.

Data management

Handling and analyzing the massive amounts of data generated by transportation and logistics operations requires robust systems to ensure accuracy and efficiency. If you optimize your document flow with, for example, DMS software features, your business will remain far more competitive.

Inventory management

Balancing inventory levels to meet demand while minimizing maintenance costs is an ongoing challenge in logistics. This also directly impacts transportation with better-optimized routes and trailer loads.

Last-mile delivery

Efficient last-mile delivery is a common challenge due to transportation bottlenecks, resource availability (trucks), and various customer preferences.

Global supply chain complexity

Managing logistics on a global scale requires dealing with different regulations. These are, for example, customs procedures and transportation networks. Optimizing these areas leads to increased complexity.

How to optimize transportation?

It needs to be emphasized that a person responsible for organizing transport in a small and medium-sized business has an extremely challenging task to handle. And it cannot be done without the right tools in hands. So, to optimize transport, logistics, and the supply chain, you really need to consider tools that can help you get a holistic view of overall operations.

Here are selected ways to optimize transport:

  • Analyzing shipments and determining routes.

  • Evaluate transportation rates every month (minimum quarterly).

  • Audit freight compliance (loading restrictions, law regulations).

  • Determining total freight costs. (validate fuel costs, spare past costs).

  • Analyze document management (replace paperwork with digital).

What are the benefits of transportation optimization?

We have listed here the most beneficial aspects of transport optimization through the software:

Reduced fuel consumption

Optimized routes through traffic patterns and delivery locations lead to lower fuel costs and carbon emissions. This also promotes a greener and more sustainable business.

Improved efficiency

Optimized routes enable faster operations. This way, companies can afford to handle higher volumes and gain a competitive edge.

Lower operating costs

Route optimization has a direct impact on operating costs. You can minimize fuel, maintenance, and vehicle wear and tear expenditures. This also reduces overall labor costs.

Better customer satisfaction

Route optimization ensures accurate and timely deliveries. This is the way you increase customer satisfaction by providing reliable and consistent service.

Improved on-time performance

Route optimization is key in maintaining timely deliveries by identifying efficient routes and considering factors such as road conditions.

Data insights

Routing software provides valuable data on performance metrics. With software for transport optimization, you can enable your business to gain insight into operations and effectively optimize transportation.

Our Top 6 Picks for Best Transport Optimization Software Features

One of the best-known and most widely used solutions for transportation optimization is a transportation management system (TMS). This system integrates various functions and features to improve business efficiency. There are also route planning systems that help optimize just this narrow transportation area. You can also find software solutions for loading optimization to set the most efficient space load for trailers or containers.

In fact, you can build your transportation optimization solution by combining the best features that are really required for your business. To do this, your best option may be to use a custom software development solution. By adopting this approach to find a solution to optimize your business process, you can engage with software experts in your industry. They can design a comprehensive solution tailored to your business needs for you.

Here are five key transport optimization software features outlined for incorporation into your solution:

Real-time Tracking and Visibility

Monitor shipments in real time using your TMS, enabling swift issue resolution and cost reduction for heightened efficiency.

Route Optimization

Utilize the route optimization feature to decrease transportation time, fuel consumption, and costs. This emphasizes the software's role in operational efficiency and eco-friendly practices.

Carrier Management

Efficiently manage transportation with this feature, fostering seamless collaboration with carriers, ensuring compliance, and enhancing reliability.

Financial Operations

Streamline invoice management and enhance efficiency with the financial operations feature, reducing errors and saving time and money.

Analytics and Reporting

Optimize logistics operations and identify trends through data-driven decisions using TMS analytics, enhancing overall productivity.

Real-Time Monitoring

Ensure timely updates on consignment status, providing the capability to monitor shipments in real-time.

What are transport optimization examples based on custom software?

Here are a few examples of transport optimization in logistics and supply chain based on cusom software:

Consolidation

Aggregating multiple shipments, for example, LTL to TL can be achieved through shipment consolidation during shipping to a single location with multiple pallets. Using this method, you can minimize paperwork and avoid system discrepancies by having all orders on one sheet.

Multi-point optimization

Another example is a multi-stop route with multi-pick/multi-drop. By using this optimization model, you can reduce the need for loading. This approach is quite similar to shipment consolidation, but it effectively limits extra stops and collections from distribution centers.

Pooling

This approach is more closely related to inventory management, aiding the optimal selection of warehouses/cross-docks to leverage consolidation and deconsolidation. [1]

Final takeaway – optimize your transport

You may need highly customized software tailored to your business needs to optimize transportation. Custom software development services can assist you in leveraging these opportunities, enabling better optimization across various transportation, logistics, and supply chain functions. Implementing a range of optimization models that align with your overall business targets is crucial.,

Adexin is a custom software development company dedicated to helping small and medium size businesses optimize their transport operations. Whether you operate as a distribution center, logistics provider, carrier, or any other entity in the supply chain, optimizing transportation operations can significantly reduce costs and increase revenue. If you're seeking the right solution for this, you can reach out to us. We provide advice on the best custom software solutions for your specific needs. Get in touch with us today.

References:

[1] Transportation Optimization; Retrieved from https://scg-lm.s3.amazonaws.com/pdfs/mercurygate_mtc_transportation_optimization_083016.pdf

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FAQ

What are the goals of transportation optimization?

Before evaluating software vendors, it is critical to understand your business needs. You can think about business challenges such as standardization, data breaks, supply chain visibility, technology integration, data management, inventory management, last-mile delivery performance and global supply chain complexity.

How to optimize transportation?

To optimize transportation, logistics and supply chain, you may consider tools that provide a holistic view of operations. These can help you analyze shipments and determine routes, regularly evaluate transportation rates, control freight compliance, determine total freight costs, and optimize document management by replacing paper documentation with digital solutions.

What are the benefits of transportation optimization?

Most crucial benefits include reduced fuel consumption, improved efficiency, lower operating costs, greater customer satisfaction and improved on-time performance. In general, transportation optimization software provides valuable data insights, enabling companies to better understand their operations.

What are the key features of transportation optimization software?

Key features include real-time tracking and visibility, route optimization, carrier management, streamlining financial operations, analysis and reporting, and real-time monitoring. These functions contribute to increased efficiency, cost reduction, compliance and overall operational excellence.

Can you give examples of transportation optimization based on custom software?

Examples of transportation optimization based on custom software include consolidation (aggregation of multiple shipments), multi-point optimization (optimization of routes with multiple stops) and pooling (inventory management for optimal warehouse/cross-dock selection). These examples demonstrate different approaches to solving transportation challenges.

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