More Glossary Terms

Freight Optimization

Freight optimization ensures processes and practices are aligned to transport a cargo shipment in the most efficient means at the expected service level.

What is freight optimization?

Multimodal freight optimization ensures processes and practices are aligned to transport a cargo shipment in the most efficient means at the expected level of service.

What is Freight Optimization? Transportation Modes

Shippers can move freight by ground transportation (full truckload (TL), less-than-truckload (LTL), parcel), rail, air, or intermodal, or internationally by air and ocean. Not every mode is appropriate for every freight shipment.

Besides unusual and oversized shipments, the best mode for a freight movement can be determined by transportation cost and service, depending on the shipper and customer needs.
What is Freight Optimization? Transportation Cost

Not every shipment requires expedited service, special handling, or additional transportation and delivery services. In these cases, flexibility allows for a focus on achieving the lowest cost to transport goods.

This allows for cost optimization measures such as improved load planning, load consolidation, pooled shipments, and advanced routing. Reducing the number of overall shipments and moving fuller loads ultimately creates cost savings.

What is Freight Optimization? Transportation Service

When customer expectations for delivery service take priority over cost, freight optimization ensures that a shipment is delivered on time, in-full, and as expected, regardless of mode or expense.

Same-day delivery, next-day delivery, set-up, installation, and refuse removal generate additional costs, but optimized execution according to customer preferences supports repeat buyers and brand loyalty. Estimated time of arrival updates and in-transit and status updates enhance service-focused optimization.

What is Freight Optimization Software?

Freight optimization software helps shippers choose the best mode, carrier, rate, and route to meet their needs. Multimodal optimization software compiles and analyzes supply chain data to find performance gaps and identify the best transportation options based on cost and service requirements. These options can include alternatives for modes, routes, providers, rates, or services.

Multimodal Freight Optimization

Multimodal transportation optimization combines multiple shipping modes to move cargo from Point A to Point B as safely, quickly, and affordably as possible. This includes organizing and planning multi-mode shipments and handoffs. Each mode used for any delivery supports the movement of freight to its final destination in a logical and manageable way.

Multimodal optimization considers every aspect of the supply chain, from securing goods and managing inventory availability to maximizing truck capacity and achieving on-time, in-full deliveries.

Use multimodal freight optimization on every shipment to improve profitability.

How MercuryGate Supports Freight Optimization

MercuryGate TMS optimizes freight transportation across the entire network. Capabilities span from basic load consolidation and pooling to more complex optimization strategies addressing inbound, outbound, and return shipments.

MercuryGate’s multimodal optimization engine improves efficiency across modes, lanes, and services with the following features:
  • All-mode rating offers a comprehensive view of market rates across modes, multimodal changes, and service levels.
  • Equipment utilization identifies correct equipment for every load to control cost and improve sustainability.
  • Dynamic rerouting factors changes and adjusts routes for individual drivers without impacting existing delivery ETA.
  • Advanced reporting capabilities help users understand and track performance of their networks to identify gaps or improvement opportunities.
  • Street-level optimization considers “what-if” scenarios to determine the best transportation moves from the first mile through the last.

These freight planning and execution capabilities give shippers resources to source capacity quickly, manage that capacity, onboard carriers, rate, optimize, execute and analyze every load to reveal the next best option.

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