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Parcel Fleets in Optimization

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Question

Parcel Fleets in Optimization

Answer

Parcel Fleets in Optimization

You can submit parcel orders and shipments to the optimizerfor consolidation into larger shipments.

Submitting Parcel Fleet Costs to the Optimizer

Youcan use the optimizer to consolidate parcel shipments into LTL shipments.To support this consolidation you should set up one or more parcelfleets for the optimization run.

Use the Add Mode and Equipmentpage to set up a fleet for each parcel service type that providesa volume discount using hundredweight (CWT) rating.

The optimizeruses the discounted hundredweight rates from the parcel fleet to providea more accurate comparison to the cost of shipping a consolidatedLTL shipment.

If you do not define parcel fleets for your discountedservice types the optimizer uses the sum of the individual parcelshipment rates to compare to the consolidated LTL cost. This approachcan overstate the cost of parcel shipments.

You only have todefine parcel fleets for the service types for which you receive ahundredweight discount. You do not have to define parcel fleets forservice types that do not provide a discount. You can still submitparcel orders for any service type to the optimizer.

Submitting Multi-Package Parcel Freight to the Optimizer

Youcan submit a multi-package parcel order to Sterling TMS which containsmultiple shipping units. Each shipping unit represents a separatepackage in the parcel order. When the Sterling TMS parcel ratingsystem calculates the order cost it uses the multi-package discountthat is defined by your parcel carrier. Sterling TMS uses thisdiscounted cost when it builds the direct mode selection plan.

Theoptimizer supports the following parcel workflows:

  • 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. Set the Optimization Mode to BreakApart on the Optimization tab ofthe Optimization Parameters page.
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Document Information

Modified date:
08 December 2018

UID

ibm10753943