What Is Multimodal Optimization and How Can It Save Money?

Multimodal optimization leverages the strength and service of every transportation method.

Multimodal optimization delivers results and helps shippers improve freight optimization in three key-value areas:

  • Lowering freight costs.
  • Improving growth.
  • Reducing fees and expenses.
Supply chains today are far from static. As situations change and conditions shift, freight shippers need to be able to flex and optimize in real-time on the go.

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.

12 Ways Multimodal Optimization Improves Cost Control

By embracing freight optimization methods, shippers can control costs and keep pricing low. Why?

Multimodal optimization:

  1. Reduces delays with locating carriers for loads.
  2. Lowers shipping costs associated with moving freight.
  3. Improves inbound and outbound shipping services.
  4. Enhances coordination between various parties.
  5. Streamlines end-to-end visibility in the supply chain.
  6. Reduces loading and unloading times and processes.
  7. Improves supply chain integration of various technologies.
  8. Minimizes time spent finding carriers and securing capacity.
  9. Reduces transit times.
  10. Improves tracking and monitoring across modes.
  11. Streamlines coordination between shippers and carriers.
  12. 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

The greatest benefit of multimodal optimization is the innovative ways it can integrate into existing platforms.
End-to-end optimization and multimodal capabilities are made easier with proper onboarding and integration with existing TMS platforms and management tools.

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.

Calculate your potential Saving While Using an enterprise TMS

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.

With more shipping options available, a greater range of cargo can be shipped and a wider customer reach can be achieved.
Rather than being locked into a single mode of shipping and a handful of cargo types, why not diversify, fulfill more orders and work with more customers?

To learn more about multimodal optimization, read our eBook, How to Maintain Cost Control Through Multimodal Shipping.

Learn about cost control with multimodal optimization.


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