Transportation Costs are Often the Major Expense in Distribution
In consumer product companies, freight costs often far exceed 60% of the total distribution cost. Unfortunately, many of the costs associated with transportation - like fuel and insurance - are driven by international forces. And population demographics are very unfavorable for a plentiful supply of drivers. All these things push operating costs of a truck fleet higher. As such, it is hard for shippers to have any leverage over their carriers - forcing more creative and innovative ways of attacking the freight-cost problem.
Order Optimization - An End-to-End Solution that Helps You Create and Ship Fewer, More Efficient Loads
A study of over 1 million trucks traveling on U.S. highways in June 2008 showed that 84% wasted more than 5% of their weight capacity. Simply put, most trucks are not shipped full. With this in mind, one major consumer goods company looked to see how they could increase shipment size. They came up with the concept “Super Truck” - More Product, Fewer Loads!
Our AutoO2 (Automatic Order Optimization) software minimizes supply chain transportation costs by optimizing orders to maximize the loads on all trucks in a way that cannot be achieved manually, with TMS (Transportation Management Systems) or with non-optimizing systems.
Procter & Gamble has gone on record saying that replacing their load builder with AutoO2 reduced their transportation costs by 7%.