Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/201087
UPSTREAM Load and route planning helps carriers solve big, strategic problems BY AARON HUFF Olathe, Kan.based refrigerated carrier TransAm Trucking implemented Manhattan Associates' Load Analyzer, providing managers with visibility of key performance metrics and a standard workflow for improving fleet performance and profitability. workflow for improving fleet performance and profitability. "By taking a high-level view of the entire network, we can see where each area is for balance and profitability by customer, and whether we are above or below commitments," says Ron Crum, applications manager for the 1,200-truck company. TransAm is one of many companies that use optimization software to make routine planning and routing decisions. In addition to helping fleets find ways to operate more efficiently, the technology also can be used to solve big problems for customers. Here are five ways to expand the technology. SCENARIO MODELING Since its founding in 1997, Cardinal has become one of the largest and most diverse dedicated third-party logistics service providers. The company uses optimization technology to design and execute routing solutions for a diverse array of Fortune 500 customers. After last February's merger with Greatwide Logistics Services (CCJ Top 250, No. 17), Cardinal now operates about 4,000 power units in its dedicated services group, 1,200 trucks for dedicated truckload service and 600 tractors with its less-than-truckload and truckload carrier Am-Can Transport (Greatwide Freight). Clay Holmes, Cardinal's chief information officer, has overseen development of the company's technology since 1999, the year it implemented TMW Suite. In 2006, Cardinal implemented DirectRoute. Cardinal uses the integrated plat- Concord, N.C.-based Cardinal Logistics Management uses the integrated platform provided by TMW Systems' enterprise software, TMW Suite, and TMW's Appian DirectRoute optimization system to model different cost-saving scenarios for customers. form to model different cost-saving scenarios for customers. For a large office supply retailer, Cardinal runs at least 15 "what-if " scenarios per year, comparing the cost impact of limiting deliveries to business hours, allowing unattended deliveries after business hours and changing the frequency of deliveries per store per week. Cardinal also models cost-saving scenarios to consolidate freight from multiple customers onto a single cus- tomer's dedicated fleet. "We can show both parties that it is in their best interests to do that," he says. "We can show the actual routes and the calculations built into those routes." Penske inputs seven operating parameters from a customer's fleet into Plato's Resource Predictor application. Being able to challenge assumptions and show the potential for cost savings is an effective way to sell dedicated logistics services, Scollard says. COMMERCIAL CARRIER JOURNAL | NOVEMBER 2013 55