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10 INNORoute Savings Strategies:

A Detailed Look



Dynamic Route Optimization   Save 10 to 25 % using INNORoute's accurate up-to-date rates and dynamic transportation planning.   Find out how...  

Dynamic routing is a shipping strategy that allows companies to optimization mode selection, carrier selection and routes at the latest possible moment so that the most number of shipments can be considered and the most up-to-date rates and discounts are utilized.

The strategy is motivated by a desire to respond to new transportation demands more quickly and to avoid the trap of stale business rules. It requires the use of a transportation optimization system - like INNORoute  - that looks at all the shipments, carriers, tariffs and business rules so that maximum savings can be identified.

This strategy provides the greatest benefit when tightly integrated with a order management or warehouse management system. Dynamic routing can improve customer service by reducing the lead time between placing an order and pickup of the shipment, thereby improving the chances of rapid delivery. It can also save operating costs by making it unnecessary to dispatch an additional truck when an existing truck can service the demand with perhaps only a small deviation in its current route.

A very profitable variation of dynamic routing supported by INNORoute expands the time horizon by "looking ahead" and considering future shipments that may be moved up 1 or 2 days to generate substantial savings.

Real-Time Rate Shopping   Use real-time-tariffs to select the least-cost carrier and easily save 10 to 25% .  Find out how...

In many ways, Rate Shopping is the most profitable - and easiest - optimization strategies, particularly for companies with significant truckload expenditures. It involves running basic order data - origin, destination, weight, ship date and mode though the INNORate Rate Shopper to determine the least cost carrier for each route.

As part of the optimization process, INNORoute rates LTL, TL and even fleet shipments by carrier, freight class, destination zip code, and weight in order to identify the least cost carrier for each shipment. INNORoute Rating expedites the processing of shipments of all modes and sizes.

The INNORoute Rate shopping feature scans all of the carriers and tariffs that meet all the requirements of the current shipment (destination zip code, class, weight, etc.).

In interactive mode, the rate shopping utility will then compare and display the rates for each of the valid carriers on one screen by price.

In optimization mode, all carriers are considered including fleet when building routes for single-stop and multi-stop routes.

Multi-Stop Truckload   Easily build Multi-stop routes for Full Truck and/or Fleet that can save 40% or more  Find out how...

Multi-stop truckloads are another method of increasing the amount of weight for a specific truckload movement. The key is to have a minimum number of shipments so there's a chance of making a significant number of multi-stop truckloads. Typically, before significant savings can be achieved, daily volume should be in excess of 20 shipments a day in or out of a location, with the size of shipments being between 750 and 500 pounds.

INNORoute analyzes millions of LTL and TL combinations to determine which shipments can best be combined to create the most savings.

Creating multi-stop truckloads can result in estimated savings of from 5 to 90 percent per shipment.

Mode Optimization   Quickly optimize for all modes (LTL, Full Truckload, Multi-Modal and Fleet) - save 20% plus  Find out how...


Many companies use less-than-effective rule-of-thumb methods such as a proximity rules or same-direction rules to assign orders to modes. These methods easily overlook combinations that can lower costs or maximize load weight or cube. Even harder to exploit are truckload rates that differ based on the final destination. It may seem obvious to ship Georgia-Arizona-California but the TL rates may actually be cheaper if you ship Georgia-California-Arizona.

Using INNORoute optimization, the most cost efficient mode every time for the freight and lane, and differences in destination TL Rates are fully exploited. There can easily be a 15 percent savings potential on the total budget when the using the right mode (and right rate) and as much as a 99% percent savings on individual shipments. Companies that currently use rule of thumb routing rules or other rule based solutions would be more likely to see the higher end savings.

Load planning - Truckload Weight, Skids and Cube Maximization   Minimizing wasted space on Full-truckload shipments can save 10 to 40%  Find out how...

Companies shipping full truckload can benefit from a weight and cube optimization, which maximizes how much product can be loaded into a trailer before exceeding the legal weight limit or before the product cubes out. The objective is to utilize as much of the space and weight capacity of the trailer as possible on each route. For example, a truck may be capable of carrying 45,000 pounds of freight, but your company may average closer to 33,000 pounds per full truckload route. By increasing the weight or cube on a truck, you not only save money, but also reduce the number of trucks you need to hire - a real benefit during peak shipping seasons.

INNORoute completes the analisys quickly and easily using real-time order data such as weight, skids and cube as well as vehicle capacity. It is not uncommon to increase product on the truck by 40 percent with a corresponding reduction in cost. Generally speaking, that level of savings will not be achievable through any other initiatives presented here.

Routing Rules Enforcement (Automated Routing Guides)   Enforcing Routing Guide Compliance with INNORoute saves 5 to 15%  Find out how...

Indentifying savings via rate shopping represents the “low hanging fruit” of least-cost optimization. Unless you optimize carrier load assignments based on cost and, mode and capacity you're likely to miss out on profitable opportunities for cost savings and fail to detect and act on increases in rates. Many times, easily obtained savings are missed simply because employees are not shopping for the best rate. INNORoute rate shopping shops across modes and looks at both regional and national carriers to indentify the lowest rates available. The estimated savings you'll receive by rate shopping ranges from 5 to 10 percent of the entire transportation budget, depending on the number and diversity (regional versus national) carriers you use.

Fleet versus Commercial Carrier   Intelligently analyzing fleet vs. commercial options for each shipment results in saving 5 to 10%.  Find out how...

Many companies ship both local (and regional) using in-house fleet and cross country using commercial carriers. Typically companies use a mileage diameter rule or destination specific rule to determine which is best – Fleet or Commercial. This results in Fleet and Commercial being separated from each other which no possibility of combining the two. Fleet shipments are then processed by a fleet routing tool and cross country shipments are shipped by manual methods.

INNORoute uses “least-cost” optimization logic to easily analyze all shipments at once and determine which mode is best. Many times a regional delivery can be combined with a cross country full truckload shipment resulting in a nearly cost-free delivery, except for stop-off charges.

Order Bundling (aka Order Aggregation)   Bundling is easy and can save big… 5 to 10% on average  Find out how...

In Order Bundling, shipments from the same origin to the same destination are combined when they have overlapping shipping and delivery windows. When orders are consolidated, the result is larger average shipment sizes and in some cases, mode shifts. Those who service the same customers on a regular basis and primarily ship less-than-truckload (LTL) and small parcel, those with multiple divisions that ship to the same customer or those that have many minimum charge shipments benefit most from this method.

INNORoute automatically bundles shipments as part of the optimization process.

Savings are estimated at 5 to 10 percent of the transportation budget. Individual shipment savings can be as high as 99 percent in cases where two or more minimum charge shipments are combined into a shipment that still is charged a minimum.

Pool Points or Cross Docking   Bypass expensive LTL networks using INNORoute's powerful pooling and easily save 50%  Find out how...

This involves bringing product to a central location, where it is segmented into separate orders and delivered to multiple locations. When a high volume of shipments weighing between 2,000 and 5,000 pounds is aggregated from or is delivered to a relatively small geographical area, pooling and cross docking allows you to bypass a relatively expensive long haul LTL network and replace it with truckload shipments and cheaper regional LTL movements.

INNORoute offers the most thorough pooling engine available, analyzing hundreds of pool-hub options then building full truckload to those hubs and LTL deliveries from those hubs.

It may seem obvious to route multiple orders from Georgia to Southern California via a California-based pooling hub. But it may actually be cheaper to pool via Salt Lake City. Only INNORoute have the built-in intelligence to determine the best pool hub and build the full truckloads required.

The estimated savings depend on the size of the average order and can be as much as 50%.

Network Modeling   Analyze – Plan – Execute. It's as easy as 1-2-3 with INNORoute. And it easily saves 10 to 50%  Find out how...

Without INNORoute, this can be the most difficult strategy to implement, requiring more work, and time and more money. Still, it is the key tool for strategic savings, since it makes a comprehensive assessment of current and historical transportation decisions and identifies strategic models for optimizing the entire supply chain. Larger companies with multiple distribution points that are looking for the next level of growth or those that have acquired companies recently and haven't looked at how the transportation networks overlap will benefit most.

It is not an insignificant effort to collect shipment history and rates and to understand the capacity of various distribution centers. It becomes very complex if an organization has acquired two or three other companies, each with its own challenges. When multiple entities are involved, different data sources and different methodologies for accounting for costs can be at play.

But INNORoute makes it easy. Orders can be imported via Excel and tariffs can be easily obtained from carriers.

Simply going through the exercise of Network Modeling with INNORoute can result in significant benefits and advantages. Without common data in a company, there will be competing data and assumptions. Developing a network model using INNORoute creates a shared understanding of how the network works and a shared set of assumptions and data to be used by all teams involved in the transportation process.

For certain companies, network modeling can offer significant savings potential (20-30 percent is not uncommon). This is huge and meaningful, not just to transportation and distribution, but to the company's bottom line.

       INNORoute Savings Strategies
 
Dynamic Route Optimization
Real-Time Rate Shopping
Multi Stop Truckload
Mode Optimization
Load Planning
Routing Rules Enforcement
Fleet vs Commercial Carrier
Order Bundling - Order Aggregation
Pool Points or Cross Docking
Network Modeling

         
           
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