SmartWay
U.S. Environmental Protection Agency +
Load Optimization for Shippers
A Glance at Clean Freight Strategies
LOAD PLANNING
BENEFITS
5-15%
fuel cost
reduction
Load planning and optimization
within your company can
substantially reduce shipping
and fuel costs between 5 to
15 percent.
20%
or more cost
reduction
Co-loading strategies with
other companies can reduce
costs and fuel consumption by
20 percent or more.
TMS
+3PL
Maximum savings are realized
when employing optimization
software as part of an overall
Transport Management System
(TMS)1 in addition to strategic
use of 3PL services to
coordinate with other shippers.
Proper load planning can help you manage transportation costs while reducing the carbon
footprint of your supply chain. Your company can maximize the benefits by using optimization
so ffware as part of an overall Transportation Management System (TMS).
WHAT IS THE CHALLENGE?
A shipper's goal is to put the most freight on a trailer and move it safely, on time, damage-free,
and at the lowest cost. Optimizing loads is a challenge because there are so many variables to
consider:
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Product weight and dimensions.
Truck and trailer dimensions, axle load distribution, center of gravity, and allowable
weight limits.
Special handling instructions, including temperature control, crushability, product
orientation, tarping, hazardous material requirements, and compatibility with other
products on board.
Sequencing loads so freight moves on and off efficiently, reducing detention times and
accessorial charges at each stop.
Identifying and collaborating with other companies (even competitors) to maximize
weight and cube utilization across routes and delivery schedules.
Perhaps the biggest challenge for shippers is the status quo: the continued use of "gut feel"
and outmoded ways of configuring loads and managing supply lines.
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WHAT IS THE SOLUTION?
Optimizing loads and increasing trailer utilization involves a multi-faceted approach:
Internal processes and poLicies: Review your own internal policies for lead times,
minimum order size, and how you build loads now.
Carrier equipment: In your requests for proposals (RFPs), require carriers to use
equipment that's best suited to your supply chain demand and load planning.
Pallets and packaging: Review pallet design and dunnage characteristics to further
maximize available space per trailer.
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Collaborative distribution and co-Loading: Collaborative supply chain logistics, utilizing
empty backhaul capacity, and consolidating loads across companies have the potential
to reduce costs by 30 percent or more and increase carbon efficiency by 25 percent2.
Look for opportunities to collaborate with other shippers in warehousing and distribution.
Technology: Load optimization software can help you build loads more effectively. The
more sophisticated products work in conjunction with your TMS to identify underutilized
trucks and flag opportunities to fill capacity earlier in the process. They can also
complement your warehouse management system (WMS), helping to optimize each
pallet during the pick, pack, and ship process.
EPA-420-F-19-014 | March 2019 | SmartWay Transport Partnership | epa.gov/smartway
(continued)

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Load Optimization for Shippers: A Glance at Clean Freight Strategies (continued)
COSTS
Implementing load optimization systems typically requires a
thorough review of your supply chain planning and procedures,
technology, equipment, and the capability of your carriers, each
of which has a cost in terms of dollars and time.
The cost and licensing of load optimization software will
vary widely depending on the volume and frequency of your
shipments, your existing IT infrastructure, and other factors
including the capabilities of yourTMS (although stand-alone
load optimization programs are available, most software is
offered as a module in a TMS).
Implementing successful co-loading strategies may include
purchasing the services of 3PLS and/or compiling detailed
operation data on weight and volume utilization rates, empty
back hauls, and identification of shared supply lines. Much of
this data should be obtainable through yourTMS.
SAVINGS AND BENEFITS
Shippers recognize the benefits of better utilization. When
asked what factor most positively affects their ability to manage
freight, 23 percent of shippers said load optimization (only "more
competitive rates" ranked higher, at 34 percent)3.
Potential benefits include lower transportation costs, increased
productivity, greater control over how shipments are handled,
and the potential to reduce your supply chain's carbon footprint.
Some examples include:
Daltile, a ceramic tile manufacturer, typically weighed out
its railcars leaving almost 4,000 cubic feet of available
volume in each car. Alternatively appliance manufacturer
Whirlpool consistently cubed out railcars using the same
line at less than 20 percent of their weight capacity. By
combining loads each company improved their
transportation efficiency substantially. Co-loading lighter
freight from other shippers on top of pallets of heavy tiles
enabled the company to cut transportation costs by up to
15 percent per load. For example, Daltile's collaboration
with Whirlpool and other shippers reduces their
transportation costs by $3M per year, lowers their annual
fuel consumption by 600,000 gallons, and cuts more than
5,300 metric tons of CO2 emissions per year4.
Wal-Mart was able to reduce the amount of lost space
per truck load simply by aligning pallets sideways. The
new orientation of rectangular pallets increased the
number that can fit in a truck by 15 percent from 26 to
30 pallets. Optimizing delivery schedules and educating
local routers has also contributed to the company's
success of delivering "335 million more cases while driving
300 million less miles" since 20085.
A 3PL matched Ocean Spray's outbound supply route from
New Jersey to Florida with empty refrigerated boxcars
traveling inbound along the same route to Tropicana
Products. The combined benefit of reducing empty
backhauls and taking advantage of intermodal efficiencies
reduced Ocean Spray's transport costs for that route by
greater than 40 percent, and cut GHG emissions by 65
percent. The arrangement also defrayed Tropicana's costs
for boxcar return6.
According to EDF's Green Freight report, Stonyfield Farms,
an organic yogurt producer, changed its company policies
to increase the required lead time and minimum size
per order, which ensured full shipping containers. The
company also reduced the amount of dunnage used in
cargo packing, increasing the space available for product
in every truck load7.
NEXTSTEPS
1
2
3
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Audit how your loads are built, taking into account the dimensions and any special handling
characteristics of the products you ship. Consider procedures and requirements about loading
and positioning shipments on vehicles, including compliance with state and federal rules.
Based on your audit, establish the capacity and other capabilities you need from your carriers.
Load optimization software can offer "what if" scenarios for loading containers. Compile a list of
software with features and benefits that best fit your supply chain planning and IT needs.
Identify 3PL services to assist with the development of cost-effective co-loading strategies.
Please visit the SmartWay website at www.epa.gov/smartway
to access more tech bulletins.	U.S. Environmental protection agency^

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