Logistics companies are always seeking methods to lower their transportation costs. By using planning software, logistics managers and transport planners can optimize their routes, resulting in significant time and cost savings. In this blog, we will discuss the key responsibilities of a transport planner and how they can help logistics firms decrease transportation costs.
What does "transport planning" entail?
Transport planning refers to the creation of an efficient plan for transporting goods, including the selection of the delivery date, mode of transportation, and route. The objective of the planning is to enhance operational efficiency and reduce costs. Moreover, transport planning involves optimizing the load on each vehicle to minimize the number of vehicles on the road. While it may seem straightforward, planning is a complex task that requires significant expertise.
What Are the Four Key Responsibilities of a Planner?
The logistics planner in the logistics and transportation industry holds significant responsibilities that impact the success of the shipment process. Their primary task involves ensuring that the company's shipments reach their destination in a timely and undamaged manner. Additionally, transport planners need to optimize the load on each vehicle to ensure maximum efficiency. To carry out these duties effectively, load planners must take on the four primary responsibilities that come with the job, as follows:
1. Complying with laws:
load planners are accountable for guaranteeing that all the operations comply with the regulations set by the local, state, and federal authorities. For instance, it is mandatory for all deliveries to be completed within the set deadlines while adhering to the driving time regulations.
2. Optimize the capability of both the vehicle and the driver:
a crucial responsibility of a load planner is to ensure that each vehicle's and driver's potential is fully utilized. In addition, companies can optimize the number of shipments per vehicle, considering the size of packages and their destination, to achieve maximum efficiency.
3. Reduce operations costs:
reducing operations costs can be achieved through several means, such as optimizing routes and vehicle capacity, adopting efficient supply chain management systems, and reducing fuel costs. Leveraging technology such as route planning software and real-time tracking can help streamline operations, minimizing manual intervention and saving time and money.
Additionally, outsourcing non-core activities such as warehousing and transportation can also help logistics firms reduce costs and improve their bottom line. By implementing these measures, logistics firms can reduce their operational expenses and allocate resources to other areas, improving overall efficiency and competitiveness.
4. Start building win-win partnerships:
Transport planners can achieve success by establishing partnerships with other logistics firms. These alliances have the potential to reduce expenses, improve productivity, and enhance customer satisfaction.
Strategies for Using AI in the Logistics Planning Process
Identify areas where AI can improve logistics planning: logistics planners should assess their operations to identify areas where AI can add value, such as demand forecasting, route optimization, and inventory management.
Gather and organize data: AI algorithms rely on large amounts of data to learn and improve. Therefore, businesses should gather and organize relevant data from various sources, such as customer orders, shipping records, traffic systems, and weather reports.
Continuously improve: continuously improve the solution to ensure that it keeps up with changing logistics business needs and advancements in AI technology.
How Norma LIVE Facilitates Integration of Load and Route Optimization
For companies seeking to enhance vehicle capacity, route optimization, and reduce operation costs, finding the right solution is crucial. Norma LIVE is an innovative route optimization software that leverages AI to provide the most efficient routes for your logistics business. It considers various factors, such as driver workload, vehicle load capacity, product details, vehicle specifications, and delivery schedules. Furthermore, Norma LIVE provides live route monitoring, allowing you to track driver progress and make adjustments to the route in real-time. With Norma LIVE, you can optimize your resources, ensure timely deliveries, and streamline your operations.
Transport planning can lead to a reduction in the transportation cost of your goods by increasing the efficiency of cargo distribution across a smaller number of vehicles. Though intricate, transport planning, especially for truckloads, offers significant benefits, including improved freight loading efficiency that can save costs by minimizing trips and returns.
Download the whitepaper "5 Tips to Improve Your Last-Mile Delivery Operations" to find out tips that help logistics planners grow their delivery operations by including them in their business strategy.