The Benefits of Freight Optimization | The Business Big Picture

The Benefits Of Freight Optimization
Functionality doesn’t always equal value. That’s why it’s important to gain the right freight optimization capabilities via the right platform to interface and deliver real business value. Ease of use is also a critical part of the equation. MercuryGate’s Multimodal Optimization solution has several elements that make it not just powerful, but highly accessible as well.These include:
  • The wizard-driven optimizer settings enable first-time or less-experienced users to get started and drive value quickly.
  • The optimization wizard automatically pulls in orders and optimizer rates, carriers, equipment, locations, hours of service, and more.
  • At the same time, individual planners are empowered to review results, make judgment calls, and refine settings as needed.
  • The ability to reuse templates makes the solution even easier to use as your team matures in their multimodal optimization understanding.

5 Business Benefits of Freight Optimization

Multimodal optimization’s unique combination of functionality and usability enables users to achieve several key business benefits:

1. Clarity of results for better decisions

Benefits of optimized scenario against base case (or different scenarios against base case and each other) are highlighted to users. This makes it easier to minimize such things as: miles travelled, equipment usage, CO2 footprint, and more, while speeding up delivery and raising service levels.

2. Hidden savings revealed

Multimodal optimization can identify opportunities to reduce expenses in the “gray area” between modes, such as multi-box parcel and LTL. For example, you can calculate how much will be saved from zone skipping or by eliminating air for next day delivery. In addition, long term expenses like inventory carrying costs can be cut.

3. Comprehensive risk management

Volume of freight, complexity of routing and changes along the way can all increase the risk of errors and unnecessary expense. Multimodal optimization is key to avoiding these pitfalls. It can model “what if?” planning scenarios that account for a variety of risk factors, including what we have seen with the global COVID-19 pandemic, as well as natural disasters, severe weather events, and geopolitical situations that may affect transportation industry business continuity. Multimodal optimization can also identify the key metrics to determine actual feasibility of the plans created, giving users strong confidence in the results.

4. The efficiency of having everything in one tool

With all of its features seamlessly integrated in a single powerful automation engine, MercuryGate’s Multimodal Optimization is a cost-effective choice. There is no need to purchase other optimization tools. MercuryGate’s Multimodal Optimization can process the full scope of possible multimodal transactions – from simple load consolidations to more complex planning scenarios and even leverage outbound backhauls for inbound movements. This radically reduces the time your team spends on planning. And it can be operated by both general users and IT experts at whatever level of simplicity or sophistication needed.

5. High level clarity and granular detail

Users can view the optimization decision tree and understand why specific loads, stops, carriers, and times are selected. Users get total transparency into how multimodal optimization makes decisions and the data is actualized presented in a way that shows why things happened or did not happen. Users can also extract this data to validate freight and fuels costs saved, and clearly explain the benefits to associates, managers, and key stakeholders.

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Steve Blough
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