Consolidation Yield Management for Freight Logistics
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Solution Overview
Problem
The increasing demand for multi-country, multi-type, and small quantity product management in the transportation industry necessitates an efficient consolidation yield management system to reduce transportation costs and improve logistics efficiency, particularly in the marine freight forwarding sector where partial container loads are consolidated into full container loads.
Innovation Solution
A consolidation yield management system and method that utilizes a network system to connect skirt stations with hub stations, enabling real-time consolidation through a skirt server and a hub server, which automate the creation and management of Air Waybills, allowing for the building or non-building of consols, thereby optimizing freight consolidation and reducing costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual consolidation management is used for multi-country, multi-type, and small quantity products, then flexibility in handling diverse cargo is maintained, but transportation costs increase and logistics efficiency decreases
Solution Approach 1:
The patent replaces manual consolidation management with an automated computer-based system that uses software modules to perform consolidation operations. The system automatically receives consolidation requests, determines consolidation feasibility, calculates costs, and generates consolidation plans, substituting manual mechanical processes with automated computational processes that improve efficiency while managing complexity through algorithmic decision-making
Solution Approach 2:
The consolidation management system enables automated self-service operations where the system independently performs consolidation determination, cost calculation, and plan generation without requiring manual intervention for each consolidation task. The computer automatically processes consolidation requests and makes decisions based on pre-set criteria and algorithms, allowing the system to serve itself in managing consolidation operations
2Productivity
If traditional port-to-port bulk freight transportation is used, then simple transportation operations are maintained, but transportation costs increase and service capability decreases
Solution Approach 1:
The patent segments the transportation system into multiple functional modules including receipt modules, determination modules, calculation modules, and generation modules. Each module handles a specific aspect of consolidation management, allowing the complex door-to-door intermodal transportation service to be broken down into manageable computational tasks that can be processed automatically
Solution Approach 2:
The consolidation management system is designed as a universal platform that can handle multiple types of cargo, multiple countries, and various transportation modes within a single integrated system. The system provides multi-functional capabilities including consolidation determination, cost calculation, route optimization, and plan generation, replacing multiple separate traditional transportation operations with a unified automated system
3Loss of energy
If freight consolidation operations are performed without automated management, then operational simplicity is maintained, but transportation costs increase
Solution Approach 1:
The patent replaces manual freight consolidation operations with automated computer-based management that systematically evaluates consolidation opportunities, calculates cost savings, and executes consolidation plans. The automated system processes consolidation data, determines optimal consolidation scenarios, and generates actionable plans, substituting manual mechanical operations with computational processes that reduce transportation costs through optimized decision-making
Data Source
AI summary
A consolidation yield management system and method is provided in the present invention, which is applicable to a network system to implement a real-time consolidation. The consolidation yield management system includes at least one skirt server and a hub server. The skirt server chooses whether to build consol of its skirt Master Air Waybill or skirt Master Air Waybill to a hub Master Air Waybill of the hub server, and generates a hub Master Air Waybill number according to the hub Master Air Waybill, thus finishing the operation of building consol.