Transport optimization with xTrack TMS algorithms
Transport is undoubtedly one of the key components of the supply chain. Without this complex logistics activity, it is not possible to supply manufacturing plants with the raw materials they need to produce the goods so necessary for our modern society, to distribute goods efficiently to warehouses or to deliver them to end customers. This is why the optimization of transport through digitalization has already become the norm in all economic sectors that require movement of goods.
The TMS software solutions (transport management systems) have become increasingly diversified to meet the requirements of the various companies that carry out such activities.
What is a TMS (Transport Management System) software solution?
TMS is an efficient software system that digitizes transport data and optimizes logistics operations, ensuring the ‘movement’ of raw materials, WIP and finished products from suppliers to consumers (companies or end customers).
The solution developed by the Axes Software team, xTrack TMS, is a flexible solution that can be tailored to the business needs of various companies: carriers, companies managing their own cars or rented vehicles for distribution, couriers or freight forwarders. The requirements differ from case to case, as the specifics of each business vary to a greater or lesser extent.
On the whole, the TMS system developed by Axes Software offers a number of extremely useful functionalities, which you can learn more about by visiting the xTrack TMS solution page. Naturally, when choosing the right solution for a company, only the modules necessary to optimize its activity (customization) will be selected. Moreover, new functionalities can be developed (innovation) if the nature of the company’s activities requires it. For example, the xTrack TMS application for freight forwarders will have some functionalities that a transport company does not need and vice versa. A courier company can implement a TMS system integrated with a Proof of Delivery (POD) system (xTrack POD in the case of Axes Software) to provide a variety of functionalities that allow a tight and detailed control of deliveries, from loading onto vehicles to delivery to end customers.
In order to optimize transport activities, the xTrack TMS system includes a number of algorithms that have been developed as part of a series of activities to extend functionalities or create new logistics applications included in the xTrack LMS (Logistics Management Suite). These activities are carried out as part of the Axes Software project, called “Innovative platform for artificial intelligence management of work processes in factories and warehouses“, which is co-financed by the European Social Fund through the Competitiveness Operational Programme 2014-2020.
Optimization of distribution and transport in a network of warehouses
If a significant part of a company’s activities is distribution, optimizing transport for distribution or between warehouses is one of the main objectives. The most efficient way to achieve this is digitalization.
The complex algorithms in the xTrack TMS application structure, which are used to optimize transport, are mainly aimed at:
- identifying the best delivery routes;
- planning deliveries;
- performing What-If analyses.
Identification of optimal routes
Route optimization is performed by an algorithm that works based on a series of parameters such as:
- departure delivery point (depot where the vehicle is located, home address of the driver, last location of the vehicle);
- customer location (destination addresses) and other data (name, order number, etc.);
- selected geographical area (which can be undivided into sub-areas and served by all available vehicles or divided into sub-areas for which specific vehicles are allocated);
- data available vehicles (their transport capacity is also important in their allocation to journeys);
- type of delivery (drop-off or pick-up);
- delivery intervals;
- return location at the end of the journey (address to which the vehicle returns or remains after completion of deliveries);
- delivery history (which can provide important data for determining optimal final routes); and
- the type and specific characteristics of the goods being carried (dangerous goods restrictions (ADR), fragility, etc.).
Based on these parameters, which can either be retrieved directly from the application or entered manually, the legs of the delivery routes are automatically set so that deliveries and pick-ups are made in the shortest time, over the shortest distances and in compliance with all legal restrictions or those imposed by customers and partners. In the case of route optimization in a network of warehouses, the algorithm can, as a first step, also check the availability of stocks of ordered products in order to identify the location from which they should be picked up for delivery.
Delivery planning
The delivery/transport planning algorithm also processes important data, i.e. information related to:
- customers (name, address);
- orders (order number, etc.);
- delivery intervals (working days, working hours, delivery time);
- available vehicles (number, type, transport capacity).
This data can be imported from other systems with which xTrack TMS is interfaced, e.g. ERP, and the result of collecting, storing and processing it is a detailed trip schedule by hours and days.
What-If Analysis
What-If analyses are important for obtaining route variants, which can then be compared and allow a more efficient and faster selection of the most appropriate one. Users can also check how delivery or transport routes change if there are changes in parameters such as, for example, a car becoming unavailable which leads to customers on that route being redistributed.
Loading optimization with xTrack TMS
Another algorithm of the xTrack TMS system is the vehicle loading optimization algorithm. This too is a complex algorithm that processes a multitude of data related to the transport vehicles, boxes (any package, parcel, pallet, etc.) and products to be transported, plus time “milestones”:
- center of gravity;
- available volume (transport capacity);
- maximum weight supported by the driving axle(s);
- product details;
- dimensions and weight of boxes;
- the fragility of the items packed;
- delivery times.
Based on these parameters, the algorithm error-free determines the number of boxes and how they should be arranged in the vehicles so that both the volumetric and weight restrictions of the cargo and the delivery times of the orders are met. When changes in parameters occur, the algorithm quickly calculates and establishes the new structure, grouping the maximum number of orders that can be loaded on a vehicle so that transport costs are optimized, distances are reduced, damage to the goods is eliminated and deliveries are safely made. For a detailed overview of this algorithm, please see our article on load optimization.
Benefits of the xTrack TMS software solution implementation
The basic advantage of digitalization is the speed of calculation and setting of the desired items, that is, a significant saving of time and effort for human operators. The flexibility of the application and the usefulness of the system algorithms, which allow for adaptation to customer requirements, i.e. fast and error-free re-running of all calculations when data changes, may be added to the mix.
The benefits of transport optimization in terms of routing, delivery planning and loading are many and varied. We can list a few:
- reduced transport costs (maintenance, fuel, etc.), maximized profits and shorter delivery times due to the identification of optimal routes;
- avoidance of damage to goods and improved transport conditions by vehicle loading optimization;
- fewer human errors due to data import from other applications and its automatic processing in xTrack TMS;
- increased customer / partner satisfaction as delivery deadlines are met.
Our consultants can provide you with more details about xTrack TMS if you give them the opportunity to do so by filling in the form below.
