A Full Truck Load (FTL) means enough products (which can be bulk/liquid) to fill a Full Truck Load, or a dedicated truck is preferred for a partial load due to safety or security considerations. The opposite of FTL is Less than Truck Load (LTL). LTL means that multiple orders are combined in a Truck Load, and is typically applied by third party logistics (3PL) operators, who combine shipments from multiple customers together in a load in a hub-and-spoke network.
Optimizing truckloads to Full Truck Loads (FTLs) improves the utilization of trucks and reduces transportation costs, the number of deliveries, the risk of damage and empty mileage (as a result of shipping less air in a trailer) and the impact on the environment through less CO2 emissions.
There are multiple decision steps involved with FTLs, i.e. to create them and to assign them to resources. We define three steps:
- If the customer orders are not specific, but there is an expected/forecasted demand, a current stock level, as well as a minimum and maximum stock level, an optimizer can compute the optimal delivery schedule for the coming period, taking these restrictions into account
- When transportation costs are leading, there is a focus on creating FTL orders. When the orders are placed by a customer, but typically consist of large volumes of multiple orders, then a good optimizer is necessary to minimize the number of FTL orders based on detailed product information like length, width and height, and stacking and loading requirements
- Optimize the assignment of an FTL to a certain truck or driver, such that the utilization of the driver is maximized and empty mileage between two FTL transports is minimized
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