Transportation network optimization efforts allow both shippers and customers
to gain the best time/cost performance in transportation. These systems allow
users to set strategy by understanding the trade-offs of supply chain designs
and selecting various modes of transportation. For example, users can weigh the
high cost of air transport with its time benefits, versus the less expensive
rail, but slower times. These systems also allow users to asses complex
multi-model strategies and complex process synchronization such as consolidation
processes and intransit merge. Even if a firm outsources their transportation
operations to external third-party logistics providers (3PL's), firms should run
their own simulations in order to assess the performance of their service
providers and understand alternative routes and solutions in case of a crisis or
transportation disruption. For firms operating their own fleets, these
optimization capabilities become a part of their daily operations to ensure the
highest level of supply chain performance—by order, by customer, at the right
service levels, and as profitably as possible. These concepts include maximizing
the issue of assets, which include trucks, trailers, containers, and ship
capacity, as well as the high performance flow through processing sites such as
intermodel facilities, yards, and loading docks. At a tactical level, these
systems can plan the order of loading of cargo and sequence of pick-ups and
drop-offs to maximize performance and solve back haul
problems.