Transportation

There are numerous reasons why companies should operate their own private fleet. Having control of the customer experience ensures consistency of message and adoption of processes to achieve success. Not all private fleets are the same. Some are multi-temperature or specialized, while some operate are single temperature or dry vans. Tompkins provides you with the answer to whether you should own or lease, the type of equipment (power unit and trailers), detailed route optimization, delivery frequency and day assignment, dynamic or static assignments, profitable backhauls, and software tools to manage the fleet, the routes and the drivers. Additionally, we evaluate more complex strategies like using depots, drop & hook, slip-seat, layovers vs. teams, pulling common freight to ease dead-heading and outsourcing when routes are outside of the norm and exceed driver or equipment capacity.

In today’s competitive marketplace for transportation resources and the large component of owner-operators, rates are just one element in sourcing transportation to move goods. Shippers must also compete for the driver experience: the ability to get through the gate quickly, position the trailer effectively, provide drivers the amenities that use their time elsewhere (hygiene, maintenance, scales, etc.). Drivers get paid while driving, not waiting, moving inefficiently on your site or sitting idle while the trailer is unloaded. Tompkins’ site planning approach takes all of these considerations into account so you become a shipper of choice that drivers want to take the load.

Traditional site flows are facing many challenges today. With disruptions creating a surge in e-commerce activity, parcel carriers are being challenged by crowdsourced couriers, flows and staging. Queuing needs to be planned as will-call transforms into courier pickup. Long-term strategy of the site needs to ensure that expansion capability is seamless. Separation of employees from traffic flow, access into the building now and in the future, staging of empty and loaded trailers, maintenance and fuel shops, electric charging stations and power unit parking all have to be considered.

Traffic flow studies are often required so shippers act as good community citizens. Access roads, noise abatement, driver instruction boards, timing and sequencing are all part of the effort to get the trucks off the street and into the yard.

Behind all great logistics functions is software to optimize and control. Because a one-size-fits-all solution is not available, finding and implementing the best solution for your strategy will ease the burden of management and cost control. Global manufacturers have different requirements and needs than e-commerce fulfillment operations. Cross-border, trade, modes, private fleets and inbound vs. outbound all play into the selection process. The existing technology stack is a factor and IT should be included in the process but not dictate it. By balancing function, deployment strategy (on-premise vs. cloud), support and upgrades, Tompkins streamlines these processes to ensure quicker, smoother and more cost-efficient go-lives.

Having a defined strategy is essential. Executing against that strategy is when the rubber meets the road. Tompkins’ transportation assessment provides you with an objective viewpoint on how the strategy is being addressed, preventing complacency and identifying gaps where cost and risk need support to elevate the customer experience. Companies must ensure that SLAs are being met, contracts reviewed and rebid and the proper modes that balance the SLA to cost equation are being utilized.

Transportation modeling is crucial in crafting a set of rules for deciding the most effective way to move freight. Like private fleet analysis, which might be one of a company’s modes, how product is moved through the supply chain impacts both customer experience and freight cost. Balancing the equation, based on the defined customer and product service levels, will yield the optimal mix of modes. Tompkins creates a digital twin that replicates your current modes and costs based on historical transactional data, and then models alternative modes and shipment profiles to arrive at an optimal balance of cost and service. With the right transportation management system (TMS) in place, contract negotiations settled, volume agreements worked out and lane designations defined, this strategy creates a framework to select the best carrier and mode at the time.   

With moving freight between sites representing approximately half of logistics costs, it is imperative to develop a comprehensive strategy that includes trading partners, transportation and equipment providers to not only ensure cost savings, but also provide value to the customer. For some, the strategy is to be nimble, allowing quick reaction to market events, while for others it is control of the customer experience. The strategy must look at the best ways to protect against disruptions such as autonomous vehicles, oil volatility, labor disputes and availability and global trade. The company philosophy on carbon footprint and social responsibility must also be incorporated.