Logistics companies are always looking for ways to reduce transportation costs and improve their bottom line. One way to do this is by using route planning software. This software can help load planners and logistics managers optimize their routes, leading to significant savings in terms of time and money.
Unfortunately, businesses that fail to optimize last-mile delivery capabilities see a significant decrease in net profits in the short term. This blog post will discuss the benefits of using AI route planner software and how it can help reduce transportation costs for logistics companies.
What Is Load Planning?
Load planning is creating an optimized plan for the transportation of goods. This plan includes the route that the goods will take, the mode of transportation, and the delivery schedule. Load planning aims to improve operational efficiency to save time and money.
However, load planning aims to maximize the loads on each vehicle so that fewer vehicles are on the road. It may sound like load planning is a simple concept, but that's not the case; a load planner's job is quite complex.
What Are the Four Primary Responsibilities of a Load Planner?
There's a lot of responsibility placed on your business's load planner's shoulders. They are tasked with ensuring that your company's shipments arrive on time and in good condition while also maximizing the loads on each vehicle. To do this well, they must take on four primary responsibilities of a load planner.
Adhere To Regulations - load planners must ensure that all operations adhere to local, state, and regulations. For instance, all deliveries must meet deadlines without violating Hours of Service (HOS) terms.
Maximize vehicle and driver capacity - one of the most important tasks of a load planner is to ensure that each vehicle and driver realize their fullest potential. Businesses can also optimize the number of shipments per vehicle, like small and large packages, and their intended destination.
Cut Unnecessary Costs - load planners are always looking for ways to reduce costs. This includes finding the most efficient routes, negotiating with suppliers, considering driver overtime hours, and using technology to automate processes.
Create Beneficial Partnerships - To be successful, load planners must create partnerships with other 3pl businesses. These partnerships can help reduce costs, improve efficiency, and provide a better customer experience.
The Struggles of Traditional Load Planning
Even with the best load planners, there are some inherent problems with traditional load planning methods. One of the biggest problems is that it's challenging to manage deliveries with different deadlines and destinations.
Manually planning routes is inefficient
Manually planning and sequencing orders takes too much time
It's challenging to consider factors like driver workloads and overtime
However, there is a solution to these problems. AI route planner software can help logistics companies reduce transportation costs and improve their bottom line. By combining load planning and route optimization, businesses can save time and money.
How Load Optimization and Route Optimization Can Be Combined With NORMA
Businesses need the perfect solution for improving their Vehicle Fill Rate, capacity, and route optimization. Norma is an AI-based route optimization software developed by Softec Technologies, it uses AI to create the most efficient routes for your business; it considers driver workloads, vehicle load capacities, product descriptions, vehicle specifications, and delivery deadlines.
Norma also offers real-time route monitoring to see how your drivers are doing and make necessary changes to the route. Norma helps you ensure that your deliveries are on time, your resources are well-utilized utilized, and regulations are followed.
Optimize Daily Routes and Delivery Schedules - Route planning software like Norma can help load planners reduce transportation costs by inputting target optimization objectives, capacity constraints, business rules, traffic rules, and traffic predictions. Norma uses AI-Powered algorithms to quickly and efficiently calculate the best-optimized delivery routes.
Maximize Efficiency and Utilization - Norma can help load planners reduce the number of vehicles needed for deliveries by maximizing efficiency and utilization. This, in turn, reduces fuel costs and other running costs associated with transportation. Drivers will also be happier with more balanced deliveries and more time for breaks.
NORMA Uses AI Instead of Manual Methods - AI-based route planning software like Norma can help load planners quickly find the best routes for their deliveries. This is in contrast to manual methods, which can be time-consuming and often inaccurate. Instead, the software plans the best way and re-routes around delays or other external factors.
Improved Customer Experience - By using Norma, load planners can help improve customer experience. Norma can do this because it considers delivery times and traffic conditions to plan the best route. In addition, Norma utilizes an algorithm that also plans for traffic conditions based on historical data and predictions to build the best-case delivery plan.
On-time Deliveries - Norma analyzes traffic conditions and delivery time windows. The data helps create a more accurate delivery plan and ensures cost-effective and timely deliveries.
Conclusion
Load planning and optimization may even have a significant effect on the freight cost of transporting your goods. It ensures that your cargoes are divided more effectively among fewer vehicles.
Load planning, particularly truckload planning, is complicated and has several advantages. There are costs that can be saved with efficient freight loading, ranging from fewer trips to fewer returns.
Whether you're a load planner or not, route optimization software may help you free two birds with one key, from load optimization to fuel management.
There are many benefits of using AI route planner software for load planning. Norma can reduce transportation costs, improve efficiency, and create a better customer experience.
If you're looking for a way to improve your load planning, consider Norma. Feel free to request a one-to-one live demo today.