Multimodal optimization delivers results and helps shippers improve freight optimization in three key-value areas:
- Lowering freight costs.
- Improving growth.
- Reducing fees and expenses.
According to FreightWaves, “shippers, logistics service providers (LSPs), carriers and drivers need to know how optimization of freight is evolving in the wake of digital transformation, why it is more than simple freight mode analysis and its implications for maximizing supply chain performance.”
Ideal optimization depends on a freight transportation and optimization system that can handle last-minute changes to orders, and everything that can cause disruptions – from shifting weather and road conditions to driver and customer needs. This exemplifies the need for multimodal freight optimization in your transportation network.
Define Multimodal Optimization
To define multimodal optimization as a practice: it offers transport services that combine several shipping modes to get shipments from Point A to Point B. Modes may include truck, rail, ocean, or air, and each supports the delivery of freight to its final destination as quickly and affordably as possible.
Multimodal shipping compiles all the various hand-offs and moves under a unified bill of lading, despite the number of carriers that are moving a shipment. It opens up opportunities for more truckload capacity acquisitions and greater diversity when it comes to load and shipment types accepted.
Freight shipment optimization improves with the multimodal approach. It allows for more affordable and sustainable shipment practices rather than an immediate focus on the most direct and often most costly service options.
Ways Multimodal Freight Optimization Improves Cost Control
- Reduces delays with locating carriers for loads.
- Lowers shipping costs associated with moving freight.
- Improves inbound and outbound shipping services.
- Enhances coordination between various parties.
- Streamlines end-to-end visibility in the supply chain.
- Reduces loading and unloading times and processes.
- Improves supply chain integration of various technologies.
- Minimizes time spent finding carriers and securing capacity.
- Reduces transit times.
- Improves tracking and monitoring across modes.
- Streamlines coordination between shippers and carriers.
- Facilitates more rate options and flexible shipment timelines.
These and other similar benefits not only save time but also money with transportation services. Efforts to improve freight optimization, in general, benefit from better integration, more logistics collaboration, and forward-thinking approaches to transportation network design.
How to Leverage Multimodal Capabilities in Your TMS
Each phase of the shipment can be optimized and customized, enabling your customers to get the exact service they want and need. At the same time, you can execute shipping moves that maximize services and minimize cost much more efficiently. This sort of TMS mobility integration allows for:
- Better route planning.
- Fee and surcharge management.
- Shipment monitoring and tracking.
- Improved overall customer service satisfaction.
Get on the Path Toward a More Diverse Mode Mix
Freight optimization allows shippers to more easily diversify their customer base and obtain a greater variety of capacity opportunities.