If
you’re a transportation manager today then you’re faced with a shortage of
drivers, stringent regulations, capacity constraints and the need to keep costs
down. So how do you meet these challenges head on and still maintain a
high-performing transportation network?
One
strategy that is gaining in popularity is known as an “integrated solution.”
Specifically, this combines the use of a dedicated fleet with third party
for-hire carriers to maximize the utilization of your transportation network.
Executed effectively, this integrated solution allows transportation managers
to achieve significant network stability, guarantee capacity, and reduce
costs.Transportation Network Stability
An
integrated solution requires a lot of planning and control throughout the
process to manage the different modes being used – you’re not just coordinating
multiple vendors but also the drivers and maintenance associated with the
dedicated fleet.
Any
integrated plan is only as promising as the operations team chosen to implement
it.
A
solution begins with the implementation team conducting a detailed analysis of
the transportation network. The goal is to identify the ideal strategy to deliver
a more efficient and cost-effective operation, without jeopardizing operational
constraints or service levels. Consider such variables as travel distance,
number of stops, equipment type, backhauls and or vendor pick-ups, and stop
constraints.
Then,
review each lane with an open mind to the need for flexibility. For example, it
might make sense for a one-way lane to be run with a common carrier one week,
and the same lane to be run with the dedicated fleet the following week for
product return.
Here
are five ways an integrated solution can deliver for your transportation
network:
1.
Flexibility. An integrated solution provides a foundation for core capacity and
allows customers, through their provider, to better match transportation
resources with procurement capabilities during fluctuations in demand.
2.
Cost savings. By making as-needed adjustments to lanes and other variables,
fleet, and common carrier optimization can rise from 5% to 10%.
3.
Transparency. Providers that rely on innovative technology gain more in-depth
understanding, resulting in increased visibility and anticipation of
disruptions. The realization that no one-size-fits-all supply chain remedy
exists means centralized route planning and engineering can simplify
decision-making and yield efficiencies in pursuit of the best possible
solution.
4.
Waste reduction. With route optimization comes reduction in miles driven,
carbon emissions footprint, lower fuel consumption, and improved utilization of
resources.
5.
Collaboration. As with any change to “the way things have always been,” success
in an integrated solution requires a commitment to collaboration across all
groups involved – from purchasing to the shipping dock. An embrace of this
collaboration can transcend carrier network operations and private fleet
management concerns.
An
integrated design between a dedicated fleet and a common carrier is attainable.
It requires continually analyzing the transportation network to achieving
balance best suited to the individual situation.
By
embracing a dynamic transportation strategy, as opposed to a static or fixed
plan, organizations can maximize the benefits of significant operational
efficiencies and resulting savings. An integrated solution can improve
operational efficiencies, reduce empty miles, right-size fleets, minimize costs
and ensure a steady workload for dedicated drivers. In the end, the objectives
of shipper and provider alike are achieved.
http://blog.ryder.com/2015/05/5-ways-integrated-deliver-transportation-network-stability/