Also check if it’s possible to expedite a portion of the order and still meet the customer’s needs. Generally, the smaller the shipment to be expedited, the lower the cost. 13. Consider consolidating LTL shipments. Consolidating shipments to create a multi-stop truckload is generally suitable for larger shipments that can ll most of the trailer’s space, Hoereth says. However, while it may be more cost-effective (not always the case) it also may take longer to deliver when compared to shipping through an LTL network. Dot Foods, a food industry redistributor, works with manufacturers to streamline their LTL supply chains, says Tim Duggan, the company’s senior director of retail channels. Dot makes every effort to source products directly from their production facilities and pick up in its eet of multi- temperature trucks in full truckload quantities. It then brings the products into its network of 15 distribution centers across the United States and Canada, consolidates them with other manufacturers’ products, and ships weekly to foodservice distributors and major drug, grocery and other retailers. “Through our partnership and consolidation model, we give manufacturers the ef ciency, savings, and reach they need to grow,” Duggan says. 14. Assess performance continually. “Shippers should always engage their carriers as closely as possible, ask for and understand their strengths and weaknesses, see the conditions and regions where they perform well and keep them off the lanes where they perform poorly,” Zimmerman says. Shippers typically do this through a thorough sourcing process, as well as mini-bids to address more speci c needs. The process should be complemented by active supplier relationship management, where the shipper monitors various performance indicators, such as carrier load acceptance and on-time-in-full (OTIF) deliveries. n
Carriers such as XPO are deploying AI and technology to hold down costs and bring up service levels.
Artificial intelligence (AI) has the potential to significantly change logistics and transportation. “While there’s still a lot to learn, we expect that AI will help with load plan e¢ciency, routing analysis, and driver preferences and capabilities,” says Jaime Jones, vice president of van network customer service and fleet planning for Werner. One worthwhile application would be to “feed” an AI algorithm all the variables that aect shipment delays and then use the application to predict and mitigate the impact of shipment delays in real time, says Michael Zimmerman, partner in Kearney’s strategic operations practice. While no single such solution exists now, many in the industry are working toward this. Carriers today are deploying AI tools to optimize service levels and drive down costs, says Anthony Hoereth, senior vice president of sales with XPO. He notes that XPO has made significant advances with three key pieces of technology. One involves piece-level tracking (PLT), in which each pallet is given a unique identifier and can be tracked independently. This results in fewer shortages, optimized trailer loading, and more e¢cient labor planning. (While PLT doesn’t directly use AI, it enables the use of AI in other technology solutions, like directed loading) XPO is also piloting a directed loading approach that leverages proprietary algorithms to assign freight to specific trailers, so it can be loaded in the most e¢cient way possible. Directed loading aims to significantly reduce how many times freight is touched, which cuts costs and improves service. Pickup and delivery (P&D) refers to the process of picking up a shipment and delivering it to its final destination after it has been transported through the company’s network. To increase stops per hour and decrease miles per stop, XPO has enhanced its P&D operations by optimizing inbound and outbound delivery route planning through Edge P&D, its proprietary platform, Hoereth says. CARRIERS LEVERAGE AI TO IMPROVE SERVICE
40 Inbound Logistics • September 2023
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