A process overview with the functional components is covered for both
 and  . The version
contains a scaled-down offering of the functionality in the version, which is
covered here. The overview is presented chronologically according to process flow. The main
processes are: |
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e.g., business rules definition, data set-up and maintenance, the setting of the asynchronous
scheduling of the processes. |
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e.g., the vendor's, supplier's or production's notice of ready to ship status of
material, load planning and routing optimization of orders and plan approval. |
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e.g., load tendering to the carrier, fleet equipment optimized allocation, participant notification
and dynamic (reoptimization) replanning of loads. |
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e.g., pick-up confirmation, intransit visibility and dynamic replanning in transit, exception
oversight and notice (proof) of delivery. |
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e.g., carrier invoice processing, self-invoicing (paying the carrier directly without an invoice),
claims against the carrier, and vendor or supplier chargebacks for violation of shipment terms. |
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e.g., metric or performance reporting, shipment cost allocation, long-range carrier equipment
forecasting, transportation cost forecasting and traffic volume forecasting. |
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The high-level process overview of  can be further described in the
functions or "objects" that are used to process the data. They represent, with others, the
transportation models in , which define how specific solvers (mathematical models) process the data.
The lists here represent only a small portion of the transportation models in . |
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Rule processes include as examples: parameter setting for load/rate optimization, data import/export
definition, interface/communication definition, equipment location controls, continuous move/mile criteria,
dynamic reoptimization rules, backhaul rules, and pooling/consolidator/cross-dock criteria. |
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Data content processes include: Reference file maintenance; address file maintenance; carrier
rate data; carrier equipment by location and time import and web generated data import. |
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Scheduling processes involve specifying when events will be scheduled for processing and how
frequently processing will occur. |
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The process and functions here involve the vendor, supplier or production's notice to traffic of
orders requiring shipment planning. Notice can be via EDI 870, Web entry, e-mail, fax or direct screen entry
import, with the information's content and form validated against user specific business rules, with the
vendor, supplier or production automatically alerted on invalid data entry. |
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Here the process and functions (the transportation models) involve a series of models that plan
orders for shipment which in turn minimize the overall costs of shipment. This is achieved by assigning an order
to the best mode and equipment available (therefore a particular carrier) such that the plan meets pre-set parameters
or rules controlling how orders will be shipped. The models call a set of mathematical solvers to optimize
delivery/minimize costs. A routing algorithm is used to minimize the shipment path for all multi-stop plans.
Specific models/solvers exist for plans involving pools / consolidators / cross-dock transfers, continuous move or
mile trips and simply direct origin-destination plans. |
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The review process of a plan may be an automated or manual process, with a review of the events log,
the shipment routing, the performance indicators of the optimization indices and the alerts list. |
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The tendering process involves an auto-notice to the carrier via e-mail, Web posting, fax or phone.
Receipt verification is captured with the shipper (if different from the traffic department) notified. If the
carrier rejects the tender, an alternate carrier is notified. The function also supports a spot bid process. |
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As part of the Fleet Optimization software, the system optimizes the assignment of carrier equipment
based on minimum costs and equipment availability. Optimization occurs against a set of rules that give
constraints on a particular unit / driver. While multi-mode is considered, the focus is on motor freight.
For forward planning, the software also forecasts future equipment requirements. |
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All parties impacted by a shipment plan: carrier, shipper, receiver, are notified via e-mail, Web
posting, Fax or EDI. |
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In the course of finalizing plans, or with a shipment in transit, new or changed orders may occur,
or shipment destinations may change. The software supports dynamic reoptimization of an order set for all
outstanding orders not tendered, or against existing plans frozen and only new or changed orders
optimized. Orders can be manually added or removed from plans. Alerts are provided on the Web site for
intransit moves. Replanning an order or a stop are also possible using the system's Web interface. |
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From the shipper, vendor / supplier, or pool site/consolidator/cross-dock facility and
from the carrier, the system receives a pick-up confirmation notice. The notice is an EDI notice (856,214,212)
or as a Web page update. |
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Once the carrier is in transit, the shipment status is monitored through EDI 214/212 notice or a Web
update. An alert notice is generated for shipments deviating from the shipment plan (e.g., pick-up /
delivery schedule changes or order size changes). Estimated arrival times are forwarded to the receiver. Through
the Web component, traffic can monitor and review the status of all shipments to the order detail level.
Shipment routing and orders on a shipment can be changed intransit with new delivery conditions created and sent
to the receiver. |
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Under the exception oversight process, the traffic department can: Take alert notice actions; do
dynamic replanning of shipments based on the alerts; schedule changes throughout the shipment plan; collect and
forward information on the carrier for OS&D; collect data for the audit of the carrier's invoice and
immediately reroute a shipment. |
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The Delivery Notice (EDI or Web posting) provide: Arrival forecasting; proof of delivery
(POD)/receipt confirmation; carrier scheduling; workload planning at the receiver DC/warehouse;
cross-dock, flow-through planning and information for carrier invoice auditing, carrier claims and
vendor/supplier chargeback. |
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Carrier invoices are audited based on the receipt of EDI 210's, Web posting by the carrier or
from paper invoices. The "actual" shipment information is derived from the system generated shipment plan and
updates to the plan (EDI 214/212, Web intransit change data). The system matches invoice to the actual cost,
identifies duplicate and supplemental invoices and non-matches for reconciliation. If multiple orders are on
a shipment, the cost is allocated to individual orders. Accounting is then notified for carrier payment. |
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With self-invoicing, the carrier is directly paid the updated costs as determined in the shipment plan
by recosting against the carrier's rate data, and either aging the shipment to insure delivery has occurred
or matching a POD to the shipment. |
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After receipt of a shipment and it's contents are accounted for against EDI 856, 214/212 or their Web
equivalent posting, discrepancies generate a pending claim notice to the carrier. With Accounting, an OS&D claim
amount is calculated and the carrier is notified. The request for payment is monitored, with registered payment
or successful dispute closing out the claim. |
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After payment to the carrier has been authorized, the system checks the shipment against a set of
rules to determine: If the vendor / supplier correctly followed an authorized shipment plan, or if they deviated from
standard corporate transportation policy, or if they have a freight cost sharing agreement. If so, the system generates
an Open Chargeback record. These can be set for manual review or automatic approval and once approved, they are
sent to Accounting for cost recovery. |
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Performance reporting occurs against: The optimization achieved in load planning, the traffic
department's performance, vendor/supplier performance and carrier performance. Examples of performance
reports include cost savings as a result of load optimization, equipment utilization, invoice overcharges
by carrier, OS&D claims against the carrier, and chargebacks to the vendor/supplier. |
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Reports exist, as examples, on transportation costs by department, costs by commodity type, costs
by vendor, supplier or customer, and costs by location (origin, destination, DC/warehouse, traffic lane). |
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A carrier equipment requirement forecasting model and reports estimate future need for equipment
by mode, carrier, traffic lane, season and by optimal allocation to carriers based upon constraint parameters
(e.g., cost; commitments for use for a carrier). |
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A transportation forecasting model estimates: The impact of carrier rate changes on
transportation costs; the shipped volume's impact on transportation costs; and changes in the location of
vendors/suppliers/customers and consolidators/pool locations/DCs/warehouses on transportation costs. |
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