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- A retailer's traffic department wants to manage inbound traffic from their vendors, but must
build multi-stop inbound moves to convert LTL shipments to the less costly TL moves with full trailers.
- A carrier wants to margin his services (equipment) by maximizing the use of that equipment over high
volume traffic lanes.
- Because delivery cost involves a high cost of transportation, a manufacturer must factor in when
orders hit the loading dock so that optimal transportation cost savings can be achieved while
meeting promised delivery dates.
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| All of the above examples point to a need for management software beyond simply tracking
an order and the shipment. |
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The software provides the shipper and the carrier, the customers, as well as
the supplier or vendor a means to manage the shipping process via the Internet without losing any of the advanced
optimization functionality of the load building and routing, fleet optimization and post-shipment accounting
software. |
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Rather than offering separate Web-based systems as is often the case in the TMS process, integrates
across all players in the transportation process, a Web-based communications tool whose focus is on the ease of
message transfer between the common players involved in the TMS process:
- Corporate - Traffic (the centralized planning of distribution flow).
- Corporate - Internal (all internal view-only access to transportation data).
- The Shipper (the execution player, where the freight is actually shipped from).
- The Receiver (the customer, a warehouse or DC, or transfer point such as a cross-dock,
pool point, or consolidator).
- The Carrier (the actual entity managed).
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ARCLOGIX's solutions are defined by the transportation models in . In its most simple form the model
represents the alternative ways to ship freight that optimize the use of equipment and the loading and routing of
a shipment. analyzes all possible ways of shipping an order, then a set of orders, and the software then
combines those results and selects the best alternative. Possible Alternative "models" are defined by the rate
structures negotiated with the carrier, whether a private fleet, dedicated fleet, or common carrier. |
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The complexity of the transportation model(s) is illustrated in "Inbound and Outbound Solutions", which
covers the resulting types of models or shipments planned for a retailer for a select set of freight. The types of
moves include:
- Vendor(s) through a consolidator to a DC1
- Vendor TL to a DC1
- Vendor LTL to a DC1
- Multi-stop pick-up at vendors, TL to a DC1, then continuing on to DC2
- Multi-stop TL store delivery
- Backhaul involving a store delivery, a dead-head to a vendor for pick-up and the shipment's delivery to DC1
- Direct vendor to store delivery.
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| The approach ARCLOGIX has taken is to build on a core set of transportation models that solve for types of
distribution patterns, and then test to see which model(s) provide the better solution(s) for the freight
currently shipped. "Better" may be driven by any combination of minimal cost, optimal use of the equipment,
or some logistics strategy constraint. Models can be static for a set time period; or involve dynamic planning,
that is, involve a constant update with new information. |
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| ARCLOGIX adds to the core model option, usually at the request of existing or new customers, by adding a new model.
An example is the "Merge-in-Transit" solution. The solution involves both a difficult coordination of the
timing of shipments through the cross-dock and to customers, but also compares if the shipment should go through the
cross-dock or directly to the customer. |
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This approach of ARCLOGIX, adding new models that reflect existing logistics strategies, ensures that
matches the way the transportation logistics community actually works versus reflecting a TMS that cannot be implemented
because the information structure does not exist to support it's use. |
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New models are added to the core software. This allows us to incorporate the approach you want to transportation management
without rewriting the software and the software development history of ARCLOGIX. is "built on the
before", not a product of performing a 180° change in direction. This provides stability. We operate
in the true spirit of pioneers -- of explorers of new vistas. |
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| The "Continuous Move" solution focuses on optimal use of equipment. In this case, given equipment availability,
the model "maximizes" the use of trailer space while "minimizing" the use of equipment by picking up
and dropping off orders in an attempt to keep the trailer full at all times. |
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| The "Closed Loop" solution is likely the oldest example, but rarely implemented effectively by either the
retailer or the manufacturer. The example shown is for a retailer with either a private or dedicated fleet at
Cross-Dock1. |
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