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More Glossary Terms

Multimodal Optimization

Multimodal optimization provides measures to control costs, reduce freight spend, improve business growth, and minimize fees and expenses related to inefficient operations across global and domestic transportation networks.

What is Multimodal Optimization in Transportation?

Multimodal optimization in transportation coordinates transport services that combine several shipping modes to move shipments most efficiently from Point A to Point B. Modes may include truck, rail, ocean, or air; each supports the delivery of freight to its final destination as quickly and affordably as possible.

Is Multimodal Optimization Cost-Effective for Freight Shippers?

Multimodal transportation can be more cost-effective than relying on a single transportation mode because different modes of transportation have different costs associated with them. By using a combination of modes, shippers take advantage of lower rates and save money by avoiding added costs, such as fuel surcharges or accessorial charges.

What Are the Benefits of Multimodal Optimization in Shipping?

Multimodal optimization drives improvements across the supply chain, but especially during the shipping journey.

  • Improved ability to meet ecommerce demand.
  • Better supply chain efficiency from start to finish.
  • Enhanced decision-making around fulfillment location.
  • Enable profitability and continuous supply chain improvement.
What Is the Difference Between Omnimodal Freight Shipping and Omnichannel Supply Chain?

Omnimodal freight shipping refers to freight shipping that relies on a mix of modes to get a shipment from one specific facility to another facility or to the customer. Businesses typically leverage an omnimodal transportation management system (TMS) that utilizes integrations to gain end-to-end visibility, mode flexibility, and overall supply chain efficiency.

Omnichannel supply chain refers to the way in which consumers shop or receive services. Omnichannel solutions provide one-touch integration across all channels, which were traditionally managed by separate processes within the supply chain network.

Optimize Shipping with a Multimodal Approach

What Is an Omnimodal Transportation Management System (TMS)?

An Omnimodal Transportation Management System (TMS) helps businesses smoothly navigate all manner of shipments. Whether that entails shipping parcels, filling truckloads, or relying on third parties to transport goods, shippers are increasingly turning to an omnimodal option to quickly, accurately, and affordably deliver on customer expectations.

Omnimodal TMS solutions typically provide:

  • Booking options for over-the-road, intermodal, air, ocean, and parcel.
  • Fulfillment tracking across all channels and transportation modes.
  • Streamlined communication across supply chain stakeholders.
  • End-to-end visibility of shipping status, location, and movement.
  • Final mile and last mile delivery capabilities.
  • Access to spot and contracted capacity.
  • Shipment rerouting, consolidation, and deconsolidation.
How MercuryGate Supports Multimodal Optimization
Transportation management is about much more than just planning and managing over-the-road shipments. Utilizing tools that can optimize each leg of a multi-leg shipment journey across modes helps drive down cost and boost sustainability while allowing you to achieve your business goals.
MercuryGate’s Omnimodal TMS Delivers Optimal Results

Modern transportation management requires businesses to use the best method for every shipment. With access to every transportation mode – ocean, road, rail, air, and Final Mile –supply chain partners can deliver the best service for consumers to meet increasingly high experience expectations.

With an omnimodal TMS, businesses gain access to capabilities that extend the ROI of freight shipping. Solutions such as MercuryGate TMS enhance businesses ability to capitalize on ecommerce opportunities, achieve international expansion, and improve sustainability–all without jeopardizing profitability.

What Customers Should Expect from an Omnimodal TMS
A TMS platform that can integrate all transportation modes and identify potential optimization and consolidation options is a vital piece of any omnimodal supply chain. MercuryGate TMS helps businesses across industries address common shipping challenges, balance partial shipments, adjust shipping modes, and achieve more effective freight operations.

Additional benefits that come from omnimodal TMS platforms can include any combination of the following:

  • Real-time agility and flexibility to meet customer needs and demands.
  • Scalability and adaptability to market trends and volatility.
  • Communication enhancements among supply chain stakeholders.
  • Integration opportunities that create more opportunity for efficiency.
  • Diversified carrier options to serve unique needs and address disruptions.
  • Sustainability improvements thanks to route and mode optimizations.
  • Customer satisfaction through better delivery, communication, and visibility.
  • Business expansion through access to more modes and larger carrier networks.

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. Multimodal optimization makes it possible to diversify operations to fulfill more orders and work with more customers.

Explore best practices to optimize across multiple modes in this on-demand webinar.

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