The load building process

The load building process entails the creation of load plans from a range of freight order lines selected by the user. You can start up the load building process in the Generate Plan (fmlbd0280m000) session. The procedure to create load plans, and which planning options to use, is described in To create load plans. The current topic describes the process that takes place after you click Generate in the Generate Plan (fmlbd0280m000) session.

The load building engine takes the following steps to create load plans:

Combine freight order lines
The freight order lines for which you create your load plan are grouped by various attributes, such as load/unload addresses and time windows. Each group of matching freight order lines becomes a combined freight order.
Perform planning method-specific steps
For each planning method, the load building engine performs one or more specific steps. For more information, refer to Specific steps per planning method.
Create stops and trips
Loading and unloading stops are created from the load/unload addresses of the combined freight orders. Carriers and transport means groups or transport means combinations are selected to visit the stops, and the stops are grouped by trip. A trip is a group of stops that is travelled by a specific transport means group or transport means combination of one specific carrier.
Combining Stops by Route Plan / Standard Route

After the stops are created in the previous step Create stops and trips, LN combines the stops that use the same route plan / standard route. After the stops are combined based on same route plan / standard route, the load building process of LN determines the ideal transport means group / transport means combination for these combined stops within a specific time frame/freight plan.

If the transport means group (TMG)/ transport means combination (TMC) selected by the LN in the previous step Create stops and trips is different than the TMG/TMC that is selected by the LN after the stops are combined based on same route plan / standard route, and the execution of the combined stops is cheaper, the stops created in the previous step Create stops and trips are removed, and LN creates new stops based on the data of the combined stops.

When the TMG/TMC selected in the previous step Create stops and trips, and the TMG/TMC selected by LN after the stops are combined based on same route plan / standard route are identical, no changes are made to the stops.
Create loads and shipments
The load building engine creates loads and shipments from the stops and trips created in the previous step. For each trip, a load is created and for the underlying loading and unloading stops, the load building engine creates shipments. For information on allocation of individual means of transport to loads, see Means of transport selection and Means of transport manually selected for freight order lines.

Combined freight orders, stops, and trips are intermediate data that are only used to analyze the eventual results of the planning process, the loads and shipments.

Note: Freight cost calculation takes place during the creation of stops and trips, and the creation of loads and shipments. For more information, refer to Freight cost calculation.

To combine freight order lines

The freight order lines that you selected in the Generate Plan (fmlbd0280m000) session to create your load plan are grouped into combined freight orders.

A combined freight order includes all freight order lines that go to or go from the same addresses within the same time period, and that share the same values of the following attributes:

Ship-from address, ship-from type, and ship-from code
Ship-to address, ship-to type, and ship-to code
Carrier
Carrier binding check box selected/cleared
Transport means group
Transport means combination

For planning purposes, either a transport means group or a transport means combination is attached to a freight order line. For further information, see Multiple means of transport by load.
Means of transport
Transport type
Combination code
Route
Route plan
Standard route
Service level
Additional rate units of the piece type
Additional rate units of the volume, length, or area type
Single shipment

Various combined freight orders can be created on which to base a load plan, depending on how many of the freight order lines have matching attribute values.

Ship-from/ship-to address, type, and code

The ship-from and ship-to codes and types of the address data must match, because the calendars must be identical for all the freight order lines of the combined order. The service level and the additional rate units are used to retrieve the freight rates for the combined orders.

Carrier/carrier binding

When freight order lines have identical carriers, freight order lines with preferred carriers are not combined with freight order lines with binding carriers.

A preferred carrier is a carrier that is selected on the freight order line, and a binding carrier is selected on the freight order line with the Carrier/LSP Binding option selected.

If freight order lines with preferred carriers and binding carriers were combined, and the loading capacity of the carriers would be insufficient to accommodate the freight order lines with binding carriers and those with preferred carriers, the load building engine would be unable to create shipments. To avoid this, freight order lines with preferred carriers and binding carriers are not combined. In this way, the loading capacity is more likely to be sufficient for freight order lines with binding carriers. For freight order lines with preferred carriers, another carrier can be searched if the loading capacity is insufficient. Freight order lines for which no carrier is selected are combined separately.

Route plan and standard route

Freight orders with route plans or freight order lines with standard routes are not combined with freight orders without route plans or standard routes. For freight order lines without standard routes or freight orders without route plans, you must use the pooling or consolidation planning algorithm to find a standard route or route plan.

Time windows

For freight order lines to be combined, their time windows must match, or at least overlap. When freight order lines are combined, the time windows are adjusted to suite all freight order lines of the combined freight order. As a result, however, there is a chance that freight orders with large time windows cannot be planned if these orders are grouped into a combined order with a narrow time window, for which no carrier is available.

Single shipment

Order lines of single shipment freight orders cannot be combined with freight order lines for which the Single Shipment option is not selected.

Freight order lines of single shipment freight orders are only combined with freight order lines that belong to the same freight order header. If the other freight order attributes do not match, new combined freight orders are created, but again only with freight order lines from the same freight order header.

Specific steps per planning method

After the combined freight orders are created, the load building engine performs one or more specific steps for each planning method:

Direct Shipping

If the direct shipping planning algorithm is used to create the load plan, the load building engine carries out the following steps before creating stops and trips:

Select carrier.
Select transport means group or transport means combination.

Note: The selection of the best carrier is controlled by the carrier selection criterion selected in the Generate Plan (fmlbd0280m000) session. When replanning is carried out, the carrier selection criterion of the load plan controls the selection of the carrier.

Consolidation

If the consolidation planning algorithm is used to create the load plan, the load building engine takes the following steps before creating stops and trips:

Select standard route

The load building engine selects a standard route that includes the addresses of the combined freight orders, but if the load building engine cannot find a matching standard route, the load plan is planned using the direct shipping planning method.

If a standard route was selected on the freight orders from which the combined freight orders were derived, the load building engine uses this standard route. If this standard route cannot be used, no other standard route is selected and the combined freight order is planned using the direct shipping planning algorithm.

In addition, if a standard route is linked to the route of the freight order lines included in the combined orders, the load building engine uses this standard route. If this standard route cannot be used, no other standard route is selected and the combined freight order is planned using the direct shipping planning algorithm. A route attached to a freight order line is derived from the originating order.

For more information, refer to The use of standard routes.
Select carrier and transport means group/transport means combination

If no carrier or transport means group/transport means combination is linked to the standard route, the load building engine selects a carrier and a transport means group or transport means combination. The selection of the best carrier and standard route is controlled by the carrier selection criterion defined in the Generate Plan (fmlbd0280m000) session.

Pooling

If the pooling planning algorithm is used to create the load plan, the load building engine takes the following steps before creating stops and trips:

Select route plan
Select carrier
Select transport means group

Select a route plan, carrier, and transport means group or transport means combination for the combined freight orders. To be selected, a route plan must match the addresses of the freight orders for which the load plan is created. The selection of a route plan, a carrier, and a transport means group or transport means combination is controlled by the carrier selection criterion defined in the Generate Plan (fmlbd0280m000) session. If a route plan is defined for the freight orders included in a combined freight order, or if a route plan is attached to the route of the freight orders of the combined order, this route plan is used.

Create stops and trips

Stops and trips are created from the combined freight orders created in the first step.

A stop includes the addresses and time windows for loading and unloading. A stop line includes the items that must be transported, and the identification of the freight order line from which the stop line originates.

A trip is a combination of loading and unloading stops in a route that are travelled by a specific carrier and transport means group or transport means combination. If no binding carrier or preferred carrier was specified on the freight orders or order lines, the carrier is selected from the carriers attached to the shipping office and the planning group of the freight orders and freight order lines for which the load plan is created.

The selected planning method determines whether multiple trips and stops can be created for a combined freight order.

Direct Shipping

If the direct shipping planning algorithm is used to create the load plan, the load building engine carries out the following procedure to create stops and trips:

The load building engine creates a loading stop and an unloading stop in one trip for each combined freight order. If the combined freight order has a route plan or a standard route, the route plan or standard route is used to create the trips and stops, which can result in multiple stops and trips being created for the combined order.
The load building engine first tries to add stop lines to existing stops. If the load building engine finds no matching stops, the load building engine creates new stops. However, single-shipment combined orders are not added to existing stops, but for such orders the load building engine creates new trips.

Note: If a route plan is specified on any of the freight orders, or a route plan and/or a standard route is specified on any of the freight order lines, the load building engine will use the specified route plan and/or standard route. The selected route plan and standard routes of the route plan legs are used to create direct shipments for all the route plan legs.

Consolidation

If the consolidation planning algorithm is used to create the load plan, the load building engine takes the following steps to create stops and trips:

Add stop lines to stops with matching addresses and load/unload dates
To create stops and trips for the combined freight orders, the load building engine first tries to add stop lines to existing stops in the standard route if the addresses and the loading and unloading dates match.
Add stop lines to stops within time windows
If no stop lines are found that meet this criteria, the load building engine tries to add the stop lines to existing trips if the loading and unloading dates fit in the time windows of the existing trips.
Create new stops and trip
New stops and a new trip are created if no matching trip is found.

Note: Single-shipment combined orders are planned using the direct shipment planning algorithm. If a combined freight order has a route plan, the load building engine uses this route plan to create stops and trips, and thus applies the pooling algorithm.

Pooling

If the pooling planning algorithm is used to create the load plan, the load building engine takes the following steps to create stops and trips:

The load building engine creates stops and trips for each leg of the route plan. Route plan legs can include standard routes. In such cases, the standard route is used to create the trips. If a route plan leg has no standard route, the load building engine adds the stops and stop lines to existing stops and trips. If no matching stops and trips are found, the load building engine creates new stops and a new trip. For this route plan leg, the combined freight order is then planned using the direct shipment planning method.

For more information, refer to The use of route plans.
If the load building engine cannot find a suitable route plan, the load building engine looks for a standard route. If a standard route is defined for the freight orders from which the combined freight order is derived, the load building engine uses this standard route, and the combined freight order is planned using the consolidation planning method. If the standard route cannot be used, or if no standard route is found, the combined freight order is planned using the direct shipping planning algorithm.

Note: Single-shipment combined orders are planned using the direct shipment planning algorithm. The selected route plan and standard routes of the route plan legs are used to create direct shipments for all the route plan legs. Trips created from combined orders of the single shipment type are not combined with other trips, regardless of the planning algorithm used.

Create loads and shipments

The load building engine creates loads and shipments from stops and trips. If the Check TMG and TMC Availability check box in the Freight Planning Parameters (fmlbd0100m000) session is selected, the capacity of the transport means groups of the carriers is taken into account at this stage. If transport means combinations are used, the capacity of the transport means groups of the vehicle types of the transport means groups is considered.

Shipment lines are created from stop lines. First, the load building engine tries to add shipment lines to existing shipments and loads in the same trip. If the loading capacity of the transport means group of the carrier is insufficient, the load building engine tries to add shipment lines to loads and shipments in other matching trips. If no matching trips exist, new loads and shipments must be created.
For a newly created shipment, the load building engine determines the required loading capacity. The available loading capacity is derived from the available number of vehicles of the transport means groups or transport means combinations linked to the carrier of the stop.

If the carrier has insufficient capacity and the carrier is binding, the shipment, and the underlying freight order lines, cannot be planned.

If a freight order line cannot be transported in one means of transport and the shipment is not allowed to be split up, the freight order line cannot be planned. The Split Shipments during planning field in the Freight Planning Parameters (fmlbd0100m000) session controls shipment splitting.

If the carrier is not binding and the carrier has insufficient capacity, the load building engine selects another transport means group or transport means combination and/or carrier. This process is repeated until all the goods of the freight order line are planned.

For each means of transport, or for the means of transport of each transport means combination, the load building engine creates a new load, shipment, and shipment line if the goods of the freight order line cannot be included in an existing shipment. If a freight order line does not fit entirely in a means of transport of a transport means group or transport means combination, the freight order line is divided over several loads, shipments, and shipment lines.

If a trip is part of a route plan and a specific carrier is defined for the route plan legs, no other carrier is selected if the carrier has insufficient capacity. In such cases, the carrier is regarded as binding and the freight order lines of the trip cannot be planned.

Note:

Single shipment trips, created from combined freight orders with single shipment freight orders or freight order lines, are not combined with other loads and shipments.
Shipments and loads are first created from trips with binding carriers. If load and shipments were created first for trips with preferred carriers and trips without specified carriers, the carrier capacity can be used up before the trips with binding carriers are planned. Next, shipments and loads are created from trips with preferred carriers, and finally, shipments and loads are created from trips without specified carriers.

Freight cost calculation

Freight costs are calculated twice during the load building process. The first time, freight costs are calculated for the combined freight orders using various carrier and transport means combination or carrier and transport means group combinations. To calculate the freight costs, freight rates are retrieved from Pricing.

The additional costs are also calculated if the user selects this option in the Generate Plan (fmlbd0280m000) session. Freight order lines with different service levels and additional rate units are not inserted in the same combined freight order.

Additional rate units of the volume, length, or area type are converted to the units defined in the Freight master data units and combined. The freight rates are then retrieved for the master data units. Freight order lines with additional rate units of the piece type are not combined, and freight rates are retrieved separately for each unit of this type. The reason for this is because conversion between units and unit sets of different items is not always possible. For example, if one item is ordered in boxes and another item is ordered in pallets, and both items have different inventory units. As a result, a rate based on a single unit cannot be retrieved.

When shipments and loads are created, the freight costs are calculated again for the loads and shipments. The reason is, that when combined freight orders can be put together in loads and shipments, the larger quantities for each transport can lead to even greater cost-effectiveness of the load plan. For more information, refer to Calculation of estimated freight costs.

To enable freight cost calculation, you must select the Transport Costing check box in the Freight Rates and Costs Parameters (fmfrc0100m000) session.

Using the default transport means group or transport means combination

When combining freight orders and calculating freight costs for a given number of freight order lines, the load building engine first looks for a transport means group (unless a transport means combination is specified for the freight order lines). If the load building engine finds no transport means group, the default transport means group defined for the carrier is taken. If no default transport means group is defined, the load building engine looks for a transport means combination. If not found, the default transport means combination defined for the carrier is taken.