Why this gets expensive? What Planning Causes:
You can't negotiate
Fuel
Labor
Market Demand
You can eliminate losses
Wasting truck capacity (Not using what you paid for)
Replenishment-planning-caused additional costs
Unstructured dock (non-repeatable) processes
Spikes that force the use of non-core, higher cost carriers
Lulls in need that force core carriers to add deadhead that they built into their rates
What can change
Loads Your Warehouse Can Actually Build
Capacity-Aware Deployment
Earlier Tendering (2.5 Days)
Preferred Carrier Acceptance (>90%)
More Product On Fewer Trucks
Less Costly Trucks
Better OTIF
Load
Optimization
Optimization
0–0
%
5%10%
Freight cost
Load
Smoothing
Smoothing
0–0
%
2%4%
Freight cost
Picking & Dock
Guidance
Guidance
0%
Pick labor
0–0%
Loader labor
Carrier
Rates
Rates
0–0
%
5%15%
Enhancement in carrier rates
Extra
Trucks
Trucks
0
%
0%10%
Higher
Emissions
Emissions
0–0
%
10%20%
OTIF
Failures
Failures
0–0
%
1%5%
Carrier
Frustration
Frustration
Costs built into the rates
Belief that "this is as good as it gets"
Misguided