Kewill Transport shippers can be licensed to use the Kewill Transport optimizer, which is based on the Transport Power Ops optimization engine from IBM ILOG.
You can use the optimizer to automate the consolidation of smaller orders and shipments into larger shipments, based on the most cost-effective transportation mode.
The goal of the optimizer is to build the load plan solution with the lowest overall cost, based on the following considerations:
v The set of orders you submit
v The representative costs and minimum savings you define v The optimization run parameters
v The transit time required to deliver the freight The optimizer provides the following general features:
v The optimizer supports multiple transportation modes. For example, you can consolidate parcel orders into LTL, LTL loads into larger LTL loads, and LTL into Truckload.
v For each mode, you can define fleets that support different service types, such as normal or expedited service.
v You can define a wide variety of run parameters that let you tune the optimization to meet your business constraints.
v You can submit orders that do not have a mode assigned. Based on the Mode Selection Thresholds you define, Kewill Transport can feed the orders to the optimizer to select the most cost-effective mode.
v You can use Direct Rate Contracts to store the representative shipping costs for different modes and service types. The optimizer uses these rates to compare shipping costs across modes.
v The optimizer takes into account transit times when it determines the modes that are eligible to make the delivery on time.
v Load planners can use the Load Builder module in Kewill Transport to quickly review and approve the shipments built by the optimizer.
Consolidating Orders and Shipments
You can use the optimizer to efficiently consolidate both orders and shipments:
v In addition to consolidating orders into shipments, you can have the optimizer replan existing shipments. You can top off shipments, combine shipments, or break apart and replan shipments.
v You can specify whether the optimizer replans tendered and covered shipments.
v After the optimizer consolidates orders into shipments, you can have the optimizer automatically create a single-stop shipment for any leftover orders.
For example, the optimizer did not consolidate an order into a truckload shipment because the optimizer determined it was cheaper to ship the freight directly as LTL.
v You can have the optimizer calculate the planned arrival window of the shipment, based on the planned departure window. You can also have the optimizer calculate the planned departure window, based on the planned arrival window.
v You can have the optimizer honor the Ship-With indicator when it consolidates orders into shipments. The optimizer will honor these ride-with constraints and combine the orders into one shipment, as long as the total size fits on the same vehicle.
v The optimizer allocates the total shipment cost proportionally to the orders in the shipment, based on the base rates, weight, volume, or quantity.
v You can require that the optimizer only assign orders to a consolidated shipment that uses the equipment specified in the orders. For example, you might require that the orders ride in a specific type of refrigerated van.
Optimization Runs
The optimizer provides the following features for setting up and running the optimizer:
v You do not have to manually select complex heuristics (mathematical algorithms) for each optimization run. The optimizer analyzes the orders and automatically chooses the best heuristics to process your data set.
v For complex order sets, you can have the optimizer build an initial solution set and then automatically run improvement heuristics to refine the results.
v You can save optimization run profiles, which allow you to to quickly launch runs and ensure consistent results.
v You can automate your optimization runs by setting up a run schedule. For example, you might save an optimization run profile and then have Kewill Transport execute it daily at 7 a.m.
v You can use the Load Builder module to view your cost savings and approve optimization run results. If you do not approve the results, you can feed them back to the optimizer to be processed again.
v You can subscribe to optimization alerts. For example, you can receive an email that tells you when a scheduled optimization run has completed.
v You can define the minimum cost savings for each mode and fleet that you are modeling in the optimizer. For example, you might want to make sure the cost savings cover the additional warehouse expense of consolidating the freight.
Optimizing Shipping Routes
The optimizer provides the following features for building efficient routes:
v The optimizer calculates route distances based on over-the-road distances from the origin to the destination. The optimizer uses the mileage source you configured for your organization, such as PC Miler or MileMaker.
v You can define the maximum distance of the total route and the maximum duration (such as 72 hours or 5 days).
v You can have the optimizer plan multi-pickup and multi-delivery routes.
v You can define the maximum number of stops in the route and the maximum distance between each stop.
v You can have the optimizer group orders together that are being picked up or delivered at a pool point location. The optimizer will consider an inbound pool point as an alternate pickup location for the line haul leg. Or, it will consider an
outbound pool point as an alternate destination for the line haul leg. A single optimization run cannot create a route that uses pool points as both the origin and destination.
v You can have the optimizer build round trip routes. For example, your private fleet might make deliveries and then return to the depot every night.
v You can have the optimizer build the route schedules to either observe or ignore the working calendar at each stop location.