System and method for logistics optimization using lane order pattern flexing
A system and method is provided which determines optimal logistics solutions by allowing a purchaser of goods to vary order frequency and amount of goods ordered so as to lower logistics costs while still meeting inventory constraints. The logistics solution uses several models to search for the most optimal solution in any of a variety of metrics, including total cost, percentage trailer utilization, number of truck used, and miles driven.
1. A method for computerized logistics optimization, said method including:
electronically receiving, with a processor, a current inbound order history for a receiver of goods,
wherein said current inbound order history represents the order history for a predetermined order history time,
wherein said inbound order history includes at least one shipment of a first product,
wherein the number of times said at least one shipment of said first product takes place during said predetermined order history time is known as the first product order frequency,
wherein the amount of said first product contained in said at least one shipment of said first product is known as the first product amount,
wherein said inbound order history includes at least one shipment of a second product,
wherein the number of times said at least one shipment of said second product takes place during said predetermined order history time is known as the second product order frequency,
wherein the amount of said second product contained in said at least one shipment of said second product is known as the second product amount,
wherein each of said at least one shipment of a first product and said at least one shipment of a second product utilizes a percentage of the available space of the trailer used to transport said shipment and wherein the average of all such percentages is known as the overall trailer utilization;
electronically calculating, using said processor, a logistics solution set, wherein said logistics solution set includes a plurality of variations of said current inbound order history determined by altering at least one of said first product order frequency, said second product order frequency, said first product amount, and said second product amount;
electronically calculating, using said processor, the overall trailer utilization for each of said plurality of variations of said current inbound order history;
electronically identifying as a revised order solution, using said processor, one of said plurality of variations of said current inbound order history that increases overall trailer utilization compared to said current inbound order history; and
electronically supplying said revised order solution to a computerized purchasing system to electronically initiate orders representing said revised order solution's first product order frequency, second product order frequency, first product amount, and second product amount.
2. The method of claim 1 wherein said logistics solution reduces said first product amount of at least one of said at least one shipment of said first product from truckload to less than truckload.
3. The method of claim 1 wherein said order history includes information at the purchase order level.
4. The method of claim 1 wherein said order history includes demand information summarized to a lane level.
5. The method of claim 1 wherein electronically calculating a logistics solution set includes simultaneously evaluating a plurality of routing models.
6. A system for computerized logistics optimization, said system including:
a computerized inbound transportation management system electronically receiving a current inbound order history for a receiver of goods,
wherein said current inbound order history represents the order history for a predetermined order history time,
wherein said inbound order history includes at least one shipment of a first product,
wherein the number of times said at least one shipment of said first product takes place during said predetermined order history time is known as the first product order frequency,
wherein the amount of said first product contained in said at least one shipment of said first product is known as the first product amount,
wherein said inbound order history includes at least one shipment of a second product,
wherein the number of times said at least one shipment of said second product takes place during said predetermined order history time is known as the second product order frequency,
wherein the amount of said second product contained in said at least one shipment of said second product is known as the second product amount,
wherein each of said at least one shipment of a first product and said at least one shipment of a second product utilizes a percentage of the available space of the trailer used to transport said shipment and wherein the average of all such percentages is known as the overall trailer utilization; and
a computerized inbound transportation optimizer electronically receiving said current inbound order history and calculating a logistics solution set, wherein said logistics solution set includes a plurality of variations of said current inbound order history determined by altering at least one of said first product order frequency, said second product order frequency, said first product amount, and said second product amount,
wherein said inbound transportation optimizer electronically calculates the overall trailer utilization for each of said plurality of variations of said current inbound order history and identifies as a revised order solution one of said plurality of variations of said current inbound order history that increases overall trailer utilization compared to said current inbound order history,
wherein said inbound transportation optimizer electronically supplies said revised order solution to a computerized purchasing system to electronically initiate orders representing said revised order solution's first product order frequency, second product order frequency, first product amount, and second product amount.
7. The system of claim 6 wherein said logistics solution reduces said first product amount of at least one of said at least one shipment of said first product from truckload to less than truckload.
8. The system of claim 6 wherein said order history includes information at the purchase order level.
9. The system of claim 6 wherein said order history includes demand information summarized to a lane level.
10. The system of claim 6 wherein electronically calculating a logistics solution set includes simultaneously evaluating a plurality of routing models.