Freight Planning

Freight planning is used to plan the transportation of inbound and outbound goods, which helps you select the most cost-effective way to get goods in and out of the location at the correct times. Freight also provides general overviews of required or available transport capacity for specified periods of time.

  • Rough Planning

    Rough planning provides estimates of both available transport capacity and required transport capacity in a given period of time. Those responsible for freight planning can use these estimates to see how much transport capacity is available to them, how much they need, and, if necessary, arrange additional capacity from their carriers.

    The transport capacity requirement overviews are based on aggregated volume, weight, and floor space figures of selected freight orders for a time span defined by the user. The volume, weight, and floor space figures can be presented in selected measuring units. You can print daily, weekly, and monthly requirement reports over a selected period. You can also display the overviews in a chart.

  • Load building

    Load Building is the core functionality of Freight. The primary purpose of load building is to plan the transportation of goods from your warehouse to the customer, from your supplier to your warehouse, or from a supplier directly to your customer, in the most efficient and cost-effective manner. Alternatively, you can employ this functionality for goods movements between your warehouses, or from warehouse to production environment and vice versa.

    The load building engine creates a load plan from a range of freight orders and freight order lines selected by the user. A load plan consists of a number of loads. Each load consists of a number of shipments.

    The load building engine offers various planning options and three basic planning methods. You can create various load plans from the same freight orders, each time using a different planning method and/or different planning options, to see which method or options provide the best result.

  • Inventory commitments in Freight

    You can generate or cancel inventory commitments for selected ranges of freight orders, freight order clusters, loads, or shipments. The purpose is to make sure that the inventory is available when the actual shipping starts.

    You can build load plans based on committed inventory.

  • Planning methods

    Load Building uses the following planning methods, or planning algorithms:

    • Direct Shipping

      A shipment is transported directly from the start address to the end address. Order lines can be combined in a shipment if the addresses and the dates match. Each shipment created from the selected freight orders and freight order lines is put in a separate load.
    • Consolidation

      Shipments that partially travel the same route are combined. For example, freight order A must go from Amsterdam to Paris, and freight order B from Paris to Geneva. Result:

      • Load A: Amsterdam-Geneva.
      • Shipment A1: Amsterdam-Paris and shipment A2: Paris-Geneva.
    • Pooling

      Multiple fixed addresses, such as distribution centers, ports, and so on, are visited. The transport route usually consists of several legs. At one of the legs, shipments travel the same way and are pooled together to go to their destination or to a distribution point. At the distribution point, the shipments are reallocated to various means of transport to be taken to their final destination.

      For example, a shipment of 50 bicycles is sent from Amsterdam to New York, another shipment of 50 goes from Amsterdam to Philadelphia, and a third shipment of 20 bicycles goes from Amsterdam to Pittsburgh. The first leg of the transport route is from Amsterdam to Rotterdam. Rotterdam is the pooling point, where the bicycles are loaded aboard a ship. At the distribution point in New York, they are unloaded from the ship and reloaded onto trucks that take them to their respective final destinations in New York, Philadelphia, and Pittsburgh.

  • Route plans and standard routes by shipping office and planning group

    You can link route plans and standard routes to shipping office and planning group combinations. This limits the number of standard routes and route plans that the load building engine has to select from, which speeds up the load building process.

  • Overview of the Plan Board (fmlbd0215m000) session

    The Plan Board (fmlbd0215m000) session provides an intuitive graphical interface that you can use to create and maintain load plans.

  • Gantt chart

    The Load Building module provides a Gantt chart that gives a timeline overview of loads and shipments as well as a capacity overview of resources: transport means groups, transport means combinations, and means of transport.

  • Map

    Loading and unloading addresses can be displayed on a map. In various sessions, the Maps option is available to display the addresses of these objects:

    • Freight order
    • Freight order cluster
    • Shipment
    • Load
    • Standard route
    • Route plan
  • Load plan, load, and shipment maintenance

    In Load Building, you can maintain the load plans, loads and the shipments created by the load building engine. Maintenance activities can include status changes or changes to other settings in the load plans, loads, or shipments.

  • Authorized excess transportation costs (AETC)

    To control transport costs, various organizations require their suppliers to ask for approval if the transport costs exceed the agreed terms. The supplier is to request a customer authorization number.

    When granted by the customer, the supplier specifies the customer authorization number on the load.

  • Means of transport selection

    In Freight you can plan transport for individual means of transport. This functionality supports transport planning for organizations that run their own fleet, but it can also plan for means of transport that are not self-owned. When load building is carried out for a range of freight orders, available means of transport are scheduled for the load created from the selected freight orders. If no means of transport have been defined, loads are created without allocating specific means of transport. After the load building procedure is carried out, you can manually modify the means of transport to loads.

  • To use Freight Management for direct deliveries

    To use Freight to plan or cluster direct deliveries, freight orders are generated from purchase orders that are linked to direct delivery sales orders or service orders. Since the goods are directly transported from the buy-from business partner to the sold-to business partner in direct deliveries, the warehouses defined in are not involved. Therefore, the freight orders, clusters, loads, and shipments are not updated from Warehousing, but only from the direct delivery sales order and related purchase order in Order Management.

  • Freight Management in multicompany environments

    In multicompany environments, freight orders can be generated from originating orders created in various logistic companies. The freight orders are planned or clustered and executed in one or more designated freight planning companies. When the freight order generation process is performed, the freight orders are allocated to a freight planning company.

    Actual loads and shipments are sent to the originating companies where Warehousing can execute them. The actual shipping information is then sent back to the freight planning company. In the freight planning company, the loads can be completed and closed. Most freight master data is shared across the logistic companies within the multicompany setup.

    All freight planning and executing information is only available in the freight planning company, this is the company of the freight order. The freight planning company can be any logistic company in the multicompany structure.

    If any information is requested for a freight order line from an originating company, automatically displays or returns the required information from the freight planning company of the freight order line. Similarly, if a process in freight management requires information from or sends information to the originating company, automatically goes to the originating company.