Why don't I see the new Optimization Parameters page?

TheOptimization Guide shows three tabs on the Optimization Parameterspage. Why do I only see two?

Before you can view the new userinterface your organization needs to be enabled by Customer Supportto use the new optimizer:

• If you are not enabled to use the new optimizer you see the originalinterface. The Optimization Parameters page contains the Optimization and Equipment tabs.
• If you are enabled to use the new optimizer you see the new interface.The Optimization Parameters page contains the Optimization ShippingData and Fleets tabs.

How long do optimizer runs take?

The newoptimizer is designed to process runs more efficiently than the Dispatcheroptimizer. Each shipper should test the optimization process and determinea suitable run time for its typical order sets.

You set themaximum time for each run using the Run For settingon the Optimization tab of the OptimizationParameters page.

Where do I set the heuristics for my optimizationrun?

With the new optimizer you do not have to select thecomplex heuristics (mathematical algorithms) for your optimizationrun. The optimizer analyzes the orders and automatically chooses thebest heuristics to process your data set.

For complex ordersets you can select the Use Improvements optionfor your optimization run. The optimizer performs additional processingto find the optimal solution for all the orders you submitted.

What does the "Use Improvements" feature do?

Whenyou set up your optimization run you can specify whether the optimizerperforms additional processing to improve the initial solution. Touse this option select the Use Improvements checkbox on the Optimization tab of the OptimizationParameters page.

The optimizer applies improvement heuristics(mathematical algorithms) that are tuned for transportation solutions.The optimizer runs until it finds the optimal solution or until itreaches the maximum run time you specified in the Run For field.

Asa best practice you should select the Use Improvements optionif you have complex order sets. The run takes longer to process butyields better results.

How do I find the orders I should be optimizing?

Runa search on the Orders tab in Execution tofind the orders you want to submit to the optimizer.

As a bestpractice you should search for orders by Mode Plan Status and ShipmentStatus.

For example:

• To search for orders that have not been assigned to shipmentsselect the mode of Unassigned. To include shipmentsfor certain modes also select the modes associated with the shipments.
• To search for shipments that already have a carrier assignedselect all Plan Status entries. To search for shipments that do nothave a carrier assigned do not select any of the Plan Status searchoptions.
• Use the Shipment Status to filter out shipments that have alreadydeparted from the origin or arrived at the destination. These shipmentscannot be submitted to the optimizer. For example search for shipmentsthat have a Shipment Status of New Readyto Ship Arrived at Origin Spottedat Origin or Loaded.

Do I have to select each order to submit it to theoptimizer?

No. After you run a search on the Orders tabyou can click the Optimize button without selectingany orders. Sterling TMS submitsall the orders that were returned by the search.

You can alsoselect individual orders and click Optimize toonly submit those orders. To select multiple orders hold down theCtrl key while you select the orders.

How do shipments get submitted to the optimizer?

Ifyou submit an order to the optimizer and the order is assigned toa shipment the optimizer automatically processes the shipment aswell as the other orders that are assigned to the shipment.

Inaddition if you submit an order that contains a Ship-With indicatorthe optimizer processes the shipment and any orders that use the sameShip-With indicator.

How does the optimizer handle existing shipments?

Usethe Shipping Data tab of the Optimization Parameterspage to define how the optimizer processes the shipments in the run.You have the following options:

Top-Off Shipments

The optimizer tries to add additional orders to an existing shipmentto fill up the vehicle.

Combine Shipments

The optimizer combines existing shipments into larger shipmentsif it reduces the cost.

Break Apart Shipments

The optimizer takes all the orders assigned to a shipment andtries to replan the orders into new shipments to reduce the cost.

Should I use the pre-build options to improve runresults?

The pre-consolidation process is used to grouporders together based on origin or destination locations. You shouldtest the pre-consolidation process on your typical order data anddetermine if pre-building orders reduces your freight costs and improvesthe optimizer solutions.

As a best practice many shippers donot use the pre-consolidation process:

• When the optimizer groups orders together based on the originor destination the optimizer keeps these orders together even ifbuilding the shipments this way increases the cost.
• The pre-consolidation step takes additional optimizer processingtime.

To use the pre-consolidation process define the Pre-BuildOn setting and related fields on the ShippingData tab of the Optimization Parameters page.

Why did the optimizer skip the orders shown in Numberof Orders Skipped?

The Optimization tabof the Optimization parameters page displays the number of ordersselected for the run and the number of orders that were skipped.

Sterling TMS skips ordersthat are not eligible for optimization:

• The order has been submitted in another optimizer run and theuser has not finished reviewing the run yet.
• The location hours do not match the dates for the optimizer run.For example an order has to ship on Saturday but the pickup locationis only open Monday through Friday.
• The order is assigned to a shipment and the load plan for theshipment has been approved.
• The order is assigned to a covered shipment (unless you specifiedthat covered orders can be submitted to the optimizer).
• The order is not active. For example the order was canceled orthe Shipment Status is Not Tracked.

If I use Assign all Orders to Shipment howdoes the optimizer select the mode?

When Sterling TMS creates ashipment for an order the system uses the direct mode selection planto select the transportation mode. Sterling TMS uses the modewith the lowest cost that has adequate transit time to deliver theshipment.

How do I know when the optimization run is done?

Yourorganization can subscribe to the Optimization Run Ready alert. Sterling TMS sends thisalert when an optimization run has completed.

How do I review the optimizer run results?

Youcan use the Load Builder module in Execution to manage the resultsof your optimization runs. Search for orders using the optimizationrun number to populate the Load Builder page:

• The Shipments table shows the shipments that the optimizer createdfrom the order set.
• The Orders table shows the unassigned orders that the optimizerwas not able to consolidate. You can submit the orders to anotherrun or set up separate shipping plans for the orders.

How can I tell which shipments were created by theoptimizer?

In Load Builder look for shipments where:

• The Created By column is set to Optimization.
• The Load Plan Status is set to Unapproved.
• The Optimizer Cost and Savings columns are populated.

How do I know which optimization run created a shipment?

Selectthe shipment in Execution and click Notes/History.The History tab displays an event to show whenthe shipment was created. This event lists the optimization run numberthat created the shipment.

How do I find out why the optimizer did not consolidatean order?

Use the following process to find out why an orderwas not optimized:

1. In Load Builder click Search & Select abovethe Orders table and search for the optimization run number.
2. When you add the search results to Load Builder the Orders tableshows orders that the optimizer did not consolidate into shipments.
3. Select an order right-click and select History fromthe shortcut menu. The Notes/History page opens and the History tabdisplays the reason the order could not be optimized.

For example the History tab mightshow that Direct Mode of LTL is the cheapest option for the order.

Asanother example shippers can use the optimizer to top off combineor break apart and replan an existing shipment. The optimizer runhistory will record a note to explain why orders on a shipment remainedunchanged during this process:

1. A shipment is submitted to the optimizer and remains unchanged(it was not topped off combined or broken apart).
2. The optimizer run history for each order from that shipment willstate:

   Order 1234 on shipment ABCD rejected during optimization run WXYZ. The original shipment plan was the cheapest option.

What are Reject Reason Codes?

The optimizerrecords an event to show why an order or shipment was not processedin an optimization run. These events are called reject reason codesand they are listed on the Notes/History page for that order or shipment.

Why did the optimizer ignore the Use Reverse RouteHeuristics setting?

When the optimizer builds a routeusing the reverse route heuristic the optimizer takes the cost ofthe route into account:

• The optimizer compares the cost of the reverse route to the costof the standard route (from the nearest origin to the farthest destination).
• If the reverse route is more expensive the optimizer does notconsolidate the orders and build the reverse route even though youselected the Use Reverse Route Heuristic option.

The reverse route heuristic is designed to work best whenyou select the Round Trip Distance option foryour truckload fleet:

• The optimizer calculates the charges for the total distance ofthe round trip route from the origin to the destination and thenback to the origin.
• When the optimizer compares the cost of the reverse route to thetotal cost of the round trip route the reverse route is more likelyto cost less than the original round trip route.

Why do I have to define fleets for my optimizationrun?

You must define a fleet for each mode and service typethe optimizer uses for consolidating orders and shipments.

Forexample:

• If you want to consolidate parcel and LTL shipments into largerLTL and truckload shipments create an LTL fleet and a truckload fleet.
• If you want to use the optimizer to replan existing shipmentsdefine fleets that include the equipment and service types requestedin the original shipments.

To define your fleets use the Fleets tabof the Optimization Parameters page.

When you submit ordersand shipments for optimization the orders and shipments might alreadyspecify a mode service type or equipment. You must define fleetsfor your optimization run that support the mode service type orequipment specified in the order or shipment.

If the optimizercannot match a shipment to a fleet the optimizer rejects the shipmentwith the No fleet was defined to support shipment reason code.

Does the optimizer honor the ship-with constrainton orders?

You can have the optimizer take into accountthe Ship-With indicator when it consolidates orders into shipments.To enable this feature select the Use Ship-With Indicators checkbox on the Shipping Data tab of the OptimizationParameters page:

1. The optimizer combines all orders that share the same Ship-Withvalue into one shipment.
2. The optimizer tries to assign the shipment to one of the fleetsyou profiled in your optimization run.
3. If the shipment cannot fit on a fleet vehicle because of sizeconstraints the optimizer rejects all the orders that were assignedto the shipment. The optimizer does not split orders with the sameShip-With value into multiple shipments.

How does the optimizer allocate shipment costs toorders?

You can use the optimizer to top off combine orbreak apart and replan existing shipments. The optimizer uses theshipment cost to determine the cost of each order assigned to thatshipment. This process is referred to as prorata order allocation.

Fordetailed information on how Sterling TMS allocatesthe shipment cost to the orders refer to the Allocating Shipment Costs to Orders topic.

What is the Direct Mode Selection Plan?

Sterling TMS builds a directmode selection plan for each order that can be submitted to the optimizer:

• The direct mode selection plan shows how much it would cost toship the order as a separate shipment using each mode and servicetype.
• The optimizer uses the costs from the direct mode selection planto calculate whether consolidating the order into a larger shipmentcan reduce the shipping cost. If it costs less to ship the order separatelythe optimizer does not consolidate it into a larger shipment.

The direct mode selection plan includes the modes you selectedin the Direct Rate section of the Rating Configuration page (in Step1 of Shipper Configuration).

To view the plan select an orderon the Orders tab and click ModePlan to open the Direct Rate Mode Selection Plan page.

Why does the Direct Rate Mode Selection Plan pageshow invalid transit times?

When Sterling TMS creates thedirect mode selection plan it determines how much it would cost toship the order as a single shipment using various modes. Sterling TMS does not validatethat the transit times are valid for the planned departure and arrivalwindow of the order.

During the optimization run the optimizerdoes the transit time validation and disqualifies any mode or servicetype that has inadequate transit time.

What does the Refresh button do on the Direct RateMode Selection Plan page?

Click Refresh ifyou want to reload the direct mode selection plan with the latestdata. For example you might use this feature to troubleshoot issueswith your direct rate contract:

• You view the direct mode selection plan and do not see the resultsyou expected.
• You update your direct rate contract.
• You refresh the direct mode selection plan to view the latestdata based on your updated contract.

Why are the distances different in the Transport PowerOps optimizer?

The Transport Power Ops optimizer can usepoint-to-point over-the-road distances making route calculationsmore accurate:

• Sterling TMS submitsover-the-road distances to the optimizer for each order.
• The optimizer uses these point-to-point distances in route calculationswhere applicable rather than always using a Euclidean straight-linedistance calculation.

Does the optimizer support multi-package parcel?

Yes.You can submit a multi-package parcel order to Sterling TMS which containsmultiple shipping units. The optimizer supports the following parcelworkflow:

• If you submit a multi-package parcel order to the optimizer theoptimizer processes the packages as a single order. The optimizercannot break apart and replan a parcel order.
• If you submit a parcel shipment that contains multiple ordersto the optimizer you can use the optimizer to break apart and replanthe shipment.

Why did the optimizer ignore some of my covered shipments?

Youcan have the optimizer replan shipments that are assigned to a carrierand have a Plan Status of Tendered or Covered. However the optimizercan only process a covered shipment until it departs from the origin.After the shipment departs it is no longer eligible for optimization.

Touse this feature select the Include Covered Shipments checkbox on the Shipping Data tab of the Optimization Parameters page.

How do I set up the minimum cost savings?

Youcan define the minimum amount of money the consolidated shipment mustsave compared to shipping each order as a separate shipment. To usethis feature define the Minimum Cost Savings foreach fleet on the Add Mode and Equipment page.

For example:

• You want to cover the cost of the additional warehouse coordinationthat must occur to arrange and ship the consolidated freight.
• You specify that each consolidated shipment must save at least$40.

If the cost savings for a consolidated shipment are less thanthe Minimum Cost Savings the optimizer doesnot create the shipment. The orders are available for another optimizationrun.

What happens if I change an order after the optimizerconsolidates it into a shipment?

As a best practice youshould subscribe to the Optimization Shipment Alert. Sterling TMS sends thisalert if you update or cancel an order which can affect the optimizationrun.

For example:

• You assign an order to a shipment during an optimization run.
• You submit an EDI 214 update for the order