Informed Decisions, Efficient Processes: Unpacking Load Optimization

A supply chain is only as successful as its team, technology, and the preparation behind it. Efficiently moving freight begins with a solid plan or in logistics lingo, proper order management, and load optimization.

Load optimization describes the process of consolidating cargo to maximize the capacity of every truck and driver. Maximizing capacity ensures multiple shipments are delivered using the fewest number of vehicles and trips. This saves shippers money and time and minimizes the risk of shipping delays.

In the past, logistics management teams prepared freight by manually assigning shipments to trucks and calculating the best routes. Today, modern software pulls information about vehicle capacity, load requirements, routes, and destinations to optimize the load planning process and helps shippers make more informed business decisions—faster than ever before.

If loads are distributed effectively across fewer trucks, delivery capacity improves, and driver mileage decreases. When well-executed—with support from a reliable logistics partner—load optimization translates to higher profit margins and lower overhead costs for shippers. Let’s see how.

Stronger transportation planning

Any large-scale, experienced logistics team knows the absence of an automated transportation management system (TMS) is a missed opportunity to optimize transportation routes and gain critical insights into supply chain operations, especially during the load optimization stage.

TMS software allows teams to consolidate shipments by taking load capacity, routes, end destinations, and other factors into account. By leveraging powerful algorithms to maximize the capacity of each truck and driver, an effective TMS solution allows shippers to make more strategic decisions about how loads are distributed across trucks and sent to their end destination.

The best part? An automated TMS means time-consuming tasks like order confirmation and load tendering are possible immediately, with little to no manual intervention from employees. For example, with CTSI-Global’s industry-leading Honeybee TMS™, shippers can rapidly confirm and schedule orders, secure the right carrier, optimize routes, and strengthen load efficiency. All of these functions create consolidated shipments and better pricing options.

Greater efficiency with pool distribution capabilities

Pool distribution, similar to the less-than-truckload (LTL) method, enables shippers to “pool” shipments together with other loads going to various destinations within the same vicinity—meaning fewer drivers, trips, and money spent overall.

In practice, pool distribution often involves consolidating multiple shipments from a single shipper at a single origin point. Typically, freight is going to the same region, but truck drivers make multiple stops along the way with different delivery points across the same route.

CTSI-Global’s pool distribution capabilities, paired with a multi-stop truckload model, make the process of delivering freight to different hubs in the same region as simple as possible. TMS software helps shippers create the optimal route, making all stops as efficient as possible. This means less unnecessary mileage and more savings.

Smarter decision-making with dynamic modeling capabilities

While shippers can’t predict every supply chain disruption, dynamic modeling offers a valuable glance into the future to determine the ways supply chains function under different conditions. This capability uses algorithms to predict outcomes, allowing shippers to test what-if scenarios about the supply chain. Some of the factors supply chain leaders may test out in a modeling simulation include:

  • Fluctuations in supply and demand that affect inventory
  • Delays or bottlenecks
  • Omnichannel supply chain performance

Modeling allows shippers to test the waters in a low-stakes simulation before implementing new technology or investing in more efficient processes. Paired with cutting-edge TMS apps and built-in BI capabilities from the Honeybee TMS™, CTSI-Global provides supply chain managers with the visibility they need to leverage real-time data and models to make informed predictions.

Begin optimizing loads with the right partner

Load optimization is arguably one of the most critical steps in the shipping process. It is one of the first opportunities shippers have to take a holistic look at their supply chain process and maximize efficiency. That’s why it requires attention to detail, organization, and above all—support from an experienced partner.

With CTSI-Global, shipping teams gain wrap-around support to consolidate shipments by size or weight, with the added flexibility of multi-stop routing, pooling, and intelligent process automation.

Simplify the load optimization process with a trustworthy partner. Contact us today to get started.