Freight Pooling System for Less Than Full Truckload Consolidation
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Solution Overview
Problem
Shippers of partial and less than full truckloads of freight face challenges with unreliable delivery schedules, increased risk of damage, and higher costs due to the lack of service level guarantees and inefficient hub-and-spoke models in conventional shipping systems.
Innovation Solution
A method and system that pools multiple less than full truckloads into a full truckload, optimizing loading orders and delivery routes while providing service level guarantees, using a solver to combine shipments and generate schedules that ensure on-time delivery, reducing transit time, and minimizing warehouse transfers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the hub-and-spoke model is used for less than full truckloads, then carriers can consolidate freight through warehouses, but delivery time increases and service level guarantees cannot be provided
Solution Approach 1:
The patent combines multiple less than full truckload shipments into a single full truckload shipment, eliminating the need for hub-and-spoke consolidation through warehouses. By pooling freight from multiple shippers into one direct truckload, the system achieves both cost efficiency and direct delivery without intermediate transfers, thereby providing service level guarantees while reducing delivery time.
2Reliability
If multiple warehouse transfers are performed in hub-and-spoke model, then freight consolidation is achieved, but risk of damage increases and shipping cost increases
Solution Approach 1:
The patent merges multiple partial truckloads into a single full truckload that can be shipped directly from origin to destination without requiring warehouse transfers. This eliminates handling and transfer operations that increase damage risk, while simultaneously achieving freight consolidation that reduces per-unit shipping costs compared to individual partial truckload shipments.
3Reliability
If conventional brokers assist shippers with partial truckloads, then shipping arrangements can be made, but no service level guarantees are provided
Solution Approach 1:
The patent implements a self-service platform where shippers can directly request partial truckload shipments and receive automated matching with compatible shipments to form full truckloads. The system automatically handles consolidation logic, route optimization, and service level guarantee provisioning, eliminating the need for human brokers while providing standardized service level guarantees and reducing arrangement complexity.
Data Source
AI summary
A method for pooling a plurality of shipments of less than full truckloads of freight to create a full truckload while providing a full truckload service level guarantee includes receiving a request for a first shipment of less than a full truckload of freight between an origin and a destination by a specified delivery date in accordance with a level of service guaranteed for a full truckload of freight. The method includes providing a commitment to ship the shipment as requested. The method includes receiving, after providing the commitment to ship the shipment for the first shipper, a request from a second shipper for delivery of a second shipment of less than a full truckload of freight. The method includes determining to combine the first shipment and the second shipment into a full truckload of freight.