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Continuously Improve Your End-to-End Transportation Network with LLamasoft Transportation Optimization

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“LLamasoft is making changes in how shippers see and talk about supply chain optimization.”

–Vishwa Ram, Director Logistics Engineering, Penske Logistics

Transportation networks often develop piece-by-piece over time instead of through intentional design. This lack of end-to-end perspective often costs companies millions of dollars annually in empty miles and missed efficiency opportunities. How can you design a transportation network that can achieve its full potential? Transportation network design is a rapidly-growing analysis approach that enables companies to create digital “models” of their end-to-end supply chains to evaluate new strategies and identify significant improvements in cost, service and efficiency.

LLamasoft Supply Chain Guru transportation optimization includes a wide range of analysis techniques, enabling users to identify optimal DC-to-customer assignments, determine the ideal mode mix, create optimal multi-stop delivery or pick-up routes, identify zone skipping/cross docking strategy, determine the best utilization of assets, evaluate driver work schedules, and even perform service-based greenfield analysis. Using transportation optimization, you can continuously improve your end-to-end transportation network and quickly adapt to business changes to stay ahead of the competitive curve.

Unlike Many Other Transportation Optimization Solutions, LLamasoft Enables You To:

Design Multi-Stop Routes

Identify shipment consolidation opportunities to reduce transportation costs within multistop routes.

Identify shipment consolidation opportunities to reduce transportation costs within multistop routes.

Identify shipment consolidation opportunities to reduce transportation costs within multistop routes.

Select Most Efficient Mode

Test and understand trade-offs for ocean vs. air, truckload vs. LTL, rail vs. road, or parcel to pick the most cost effective mode given your global supply chain network flows and costs. Scale the model to include all required SKUs and shipments.

Evaluate Network Footprint and Sourcing Allocations

Determine optimal footprint for new or existing sourcing, production and distribution sites, as well as optimal DC-to-customer locations to achieve lowest cost solution that meets service level targets.

Schedule Frequency Optimization with Load Balancing

Determine optimal shipment schedules for multi-stop vehicle routes to minimize costs while adhering to shipment frequency requirements and load balancing objectives.

Model Asset Utilization against Service Metrics

Identify the most efficient use of your vehicles, containers, or warehouse capacity by modeling and optimizing the transportation network as it relates to customer service.

Identify Cross Docking and Zone Skipping Opportunities

Determine if shipments should be consolidated through a hub, and if so; optimize the best potential hub through which to route.

Optimize Fleet Size

Determine the optimal private vehicle fleet size, which vehicle types are best, and the tradeoffs between the fixed cost of extra assets vs. multi-stop route costs.

Rapidly Compare Potential Changes

Rapidly evaluate the impact of changes to business hours and expand shipment delivery/ pickup time windows for improved consolidation, allowing driver overtime pay, alternative vehicle types, and fuel price volatility. Scenario results are consolidated into a single database to easily test multiple inputs for easy analysis and comparison of results without creating multiple model versions.

Solve Complex Problems Through a Wide-Range of Modeling Options

Vehicle Routing

Constraint

  • Develop alternative routes based on various vehicle sizes and carriers
  • Respect driver working hours regulations and limitations
  • Include constraints related to shipment time windows, business hours, and trip characteristics such as maximum route time or number of allowed stops by vehicle type
  • Enforce relationships to prevent incompatible products from being combined on the same route or Vehicle and delivery location compatibility like lift gates

“Not only does [LLamasoft] integrate network optimization and vehicle route optimization, but it will also simplify our data input and output analysis, enabling us to quickly identify opportunities for freight savings in our supply chain.”

–David Raymond, Vice President of Operations Transformation, Wayfair

Analysis

  • Compare optimal multi-stop routes to less-than-truckload shipment costs to determine the ideal mode mix
  • Compare and contrast results between multiple scenarios to better tell the story in tradeoffs between service, cost and risk

Map

  • Utilize real road data from data sources like PC Miler, PTV Map and Guide, Bing, Baidu, and MapLink1

Cost Savings

  • Identify the savings achieved by creating backhaul or even continuous move routes (picks and drops on same route), mode selection and DC location

Rating

  • Analyze multiple cost types related to distance, stops, fuel surcharges and discounts, driver time, toll roads and overnight hauls

Integration Features

  • Includes numerous data integration technologies to seamlessly connect to any type of enterprise data source
  • Provides fully integrated visualization tools including maps, charts, and one-click connections to Tableau™ and Google Earth
  • Integrates network optimization, inventory optimization with transportation optimization and/or simulation within the same data model
  • Integrated with LLamasoft® Data Guru, which simplifies the transformation of model data and creates documented, repeatable, time-saving workflows. Includes SAP data connector for direct connection to ERP transaction data

Who Uses LLamasoft Transportation Optimization?

Shippers, Retailers, Etailers and Grocers: Determine ideal mode and flow path for each product or business unit, using predictive analysis to determine inventory position, timing, and needed capacity.

Automotive / Manufacturing: Determine the right frequency and asset mix of supplier runs for ‘just-in-time’ production to finished good outbound distribution.

Construction: Level out delivery schedules for an increased service level at a lower total cost.

Food and Beverage: Help assess the value add and tender evaluations of 3PL providers. Quickly determine provide make-or-buy decision support.

Retail: Companies with large ecommerce and DC to store volumes can decide to pick up goods from a supplier and may choose to consolidate through a hub / cross dock; from there, the goods may either direct ship to a customer via 3PL/parcel or have enough volume and density in the area to perform a multi-stop route.

Carriers, Dedicated and Private Fleets: Haul more freight per mile with greater asset utilization, consolidating loads and creating continuous moves for higher operating efficiency. Know your cost-to-serve at shipment level of detail.

3PLs and Intermediaries: Identify and test stand-alone or collaborative best practices for your customer base, demonstrating proficiency in design as well as management. Quickly determine synergies with existing networks to determine the price to quote back to their customers.

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