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WORKFLOW - LOGISTICS

Intelligent Routing Workflow

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Quick Answer

The Intelligent Routing Workflow uses AI to optimize shipment routing by evaluating mode options (LTL, truckload, intermodal, parcel), analyzing cost vs. transit time tradeoffs, and selecting optimal routes based on shipment characteristics and customer service requirements.

Definition

**Intelligent Routing Workflow** automates routing decisions for each shipment. AI considers origin/destination, shipment characteristics, customer requirements, carrier options, and current network conditions to recommend the optimal mode and route.

Key Points

  • Evaluates multiple mode options: LTL, FTL, intermodal, parcel, expedited
  • Balances cost optimization with transit time requirements
  • Considers shipment characteristics: size, weight, fragility, temperature
  • Analyzes carrier network coverage and service levels
  • Predicts transit time based on historical performance
  • Optimizes for customer SLAs and cost targets simultaneously
  • Adapts to network disruptions and capacity constraints
  • Reduces freight costs 8-15% through optimal mode selection

How It Works

1

Shipment Analysis

Analyze shipment: origin/destination, weight, dimensions, freight class, handling requirements, delivery date requirement.

2

Mode Qualification

Determine eligible modes: parcel (if <150 lbs), LTL (if partial truckload), FTL (if full truckload), intermodal (if long haul, flexible timeline).

3

Transit Time Prediction

Predict transit time for each eligible mode based on historical lane performance, current carrier performance, seasonal factors.

4

Cost Calculation

Calculate cost for each mode: base rate, fuel surcharge, accessorials, total landed cost. Consider contracted rates and spot market.

5

Service Level Matching

Filter options meeting customer SLA: required delivery date, transit time buffer, delivery time window, signature requirements.

6

Risk Assessment

Evaluate risk: carrier reliability, weather disruptions, capacity constraints, damage rates. Higher risk reduces option viability.

7

Optimization Scoring

Score each option on weighted criteria: cost (40%), transit time (30%), reliability (20%), service match (10%). Rank options by score.

8

Route Recommendation

Recommend optimal mode and carrier. If multiple options similar, present tradeoffs: 'Save $45 with 1-day longer transit' for user decision.

Mode Selection Decision Logic

Parcel (<150 lbs): Small shipments, time-sensitive, residential deliveries. Use parcel carriers for speed and residential network coverage.

LTL (Less-Than-Truckload): Partial truckload shipments (150-10,000 lbs). Cost-effective for freight not filling full truck. 2-5 day transit typical.

FTL (Full Truckload): Shipments filling most of trailer (>10,000 lbs or high cube). Faster transit, less handling, better for fragile goods.

Intermodal (Rail+Truck): Long-haul (>750 miles) with flexible timeline. 30-40% cost savings vs. FTL, but 2-3 days slower. Best for non-urgent freight.

Expedited: Time-critical shipments requiring guaranteed delivery. 2-3x cost premium. Use when customer urgency or production-critical freight.