THE NEW ARRIVALS
The good news for shippers is that
in the past few years, a number of
software developers have stepped
forward to provide these special
tools.
One such vendor is JDA Software
Inc., which developed the application used by Kimberly-Clark. Called
Transportation Modeler, the software is designed to draw data from
the vendor’s own TMS but can also
be used on a stand-alone basis.
Kimberly-Clark has been using
the software since 2006 to optimize
shipments from more than 100 distribution centers in North America,
using about 100 carriers. (Although
KC has an extensive carrier base, it
should be noted that most of the
company’s shipment volume is
concentrated with fewer than 10
carriers.)
Zoppa of Kimberly-Clark says his
company uses the tool to analyze
the effect of shipping network
changes on load planning. For
example, if the company gets a
lower price quote from a carrier, it
might use the software to model
how shifting freight to the new car-
rier would affect overall load ten-
dering patterns.
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of its solution.
Inet-logistics’ strategic planning module
uses both forecasts and historical data on
freight movements to run a simulation to
provide a “picture of prospective transportation activity,” says Werle Oswald, the
company’s chief executive officer. He adds
that the module helps shippers optimize
costs and capacity requirements within a
network.
Another vendor offering software for
transportation planning is Terra
Technology, a supply chain planning software specialist. Terra has an application
called Transportation Forecasting that’s
designed to assist with capacity planning.
The software uses historical shipment data
drawn from the manufacturer’s enterprise
resource planning (ERP) system to produce
a daily forecast of shipping needs by lane
and mode.
The forecasting application also allows
users to plan ahead for special shipping
requirements. For example, it can take marketing plans for product promotions weeks
in advance and use the data to help determine how much freight capacity the company should reserve from its carriers, says
Robert F. Byrne, Terra Technology’s president and CEO. “Shifts in sourcing and volumes due to changes in manufacturing
capabilities are also reflected in the logistics
forecast,” says Byrne, “so contracts and
budgets can be more effectively managed.”
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PREPARING FOR A CRUNCH
For all its potential as an advanced planning tool, transportation forecasting software has yet to see widespread adoption by
shippers. Klappich attributes that to the relative ease with which shippers can find a
carrier willing to move a load for a reasonable rate these days.
“When capacity is plentiful, you figure
anytime you want a carrier, you can get a
carrier,” Klappich says.
But that could well change if the predicted trucking capacity shortage materializes,
Klappich warns. As shippers find themselves going farther down their carrier lists
to locate a trucker willing to haul a load,
their attitude will change, he predicts.
“We’ll see more interest in transportation
forecasting over the next few years as
capacity dries up.” ;
