Transportation Management

Get Involved. Join the Conversation.

Topic

    Karl Baker
    Can OTM look at future capacity availability so the least...
    Topic posted August 27, 2019 by Karl BakerBronze Trophy: 5,000+ Points, last edited August 28, 2019, tagged Operational Planning 
    25 Views, 1 Comment
    Title:
    Can OTM look at future capacity availability so the least expensive carrier is selected
    Summary:
    We have carrier capacity implemented and OTM seems to set the ship date and then select the best carrier - anyway to look at a different ship date and use future capacity?
    Content:

    We have capacity setup from our Fort Smith DC.  We are noticing that when we have the option for a shipment to ship either today or tomorrow - and use a less expensive carrier's future capacity (tomorrow's capacity) - OTM keeps the earlier shipment ship date and uses today's capacity - and in some instances - the less expensive carrier's capacity is exhausted and OTM ends up selecting a more expensive carrier to ship the shipment today when there was an option to ship the shipment tomorrow and use the less expensive carrier.  Is there a way to have OTM consider a different ship date for a shipment and use capacity that's available on a later date? 

    Comment

     

    • Karl Baker

      The 19B/C feature Consider Service Provider Capacity Across Days provides you with the ability to configure OTM to consider using capacity limit capacities that are available on different days.  You can encourage or discourage the use of capacity on different days for both cost based decisions as well as priority based decisions.

      The full description from the What's New document for 19B is below...

      CONSIDER SERVICE PROVIDER CAPACITY ACROSS DAYS

      This feature provides you with the ability to configure a policy that will allow OTM to consider using capacity limit capacities that are available on different days.  With this feature, you have configuration capabilities that will allow you to encourage or discourage the use of capacity on different days – for both cost based decisions as well as priority based decisions.

      Shippers who would like to take advantage of lower cost carriers with limited capacity and still manage the priority of the shipments (High, Medium, Low) now have a place to configure a policy on how to configure the delay to shipping based on priority and how long of a delay is allowed.

      New Parameters

      • SPA MAX DAYS TO CONSIDER
        • This parameter determines how many extra possible start days OTM will consider for each shipment that is subject to capacity limits. 
      • SPA TIME CHANGE POLICY
        • This parameter allows you to configure your policy for changing a shipment's start date in order to take advantage of (future) capacity.
          •  For example, given a service provider with the least expensive rate on a lane and a capacity of one truck per day. Assuming that today's capacity has already been used, and there is another shipment that could be assigned to the least cost service provider if the service provider had capacity - does it make sense to change the start date of today's shipment to tomorrow - assuming that the change is feasible - to use tomorrow's capacity - or does "delaying" the start time by a day add an unacceptable service time failure risk by eliminating the available slack time in the shipment timing?  
        • The available SPA TIME CHANGE POLICY options are:
          • 3. Encourage Time Change.
          • 2. Discourage Time Change For High & Medium Priority Shipments'
          • 1. Discourage Time Change For High Priority Shipments'
          • 0. Discourage Time Change

      STEPS TO ENABLE

      Assuming that you are already planning with capacity limits - to extend capacity limits to consider using capacity availability on different days you will want to configure the following parameters which can be found in the Service Provider Assignment group:

      • SPA MAX DAYS TO CONSIDER
        • This parameter determines how many extra possible start days OTM will consider for each shipment, subject to capacity limits. When using this parameter, it is best to set this no larger than needed, as it can have a performance impact. For example, if two extra days is sufficient to find the right resources, then there is no reason to set it higher than 2.
        • The default is "0" (zero). See the Service Provider Assignment and Resource Management topic, Service Provider Assignment Time Window Functionality section, for more details.
      • SPA TIME CHANGE POLICY
        • This parameter provides priority level control about whether OTM should discourage delaying the shipment start date in order to take advantage of a cheap but capacity-limited service provider. For example, there is a cheap carrier that has only one truck per day. Should I delay my shipment departure to tomorrow to get the cheap truck, or should I let it ship today on an expensive truck?  The options are:
          • '0. Discourage Time Change',
          • '1. Discourage Time Change For High Priority Shipments',
          • '2. Discourage Time Change For High & Medium Priority Shipments',
          • '3. Encourage Time Change'.

       

      TIPS AND CONSIDERATIONS

      SPA MAX DAYS TO CONSIDER -  When using this parameter, it is best to set this no larger than needed, as it can have a performance impact. For example, if two extra days is sufficient to find the right resources, then there is no reason to set it higher than 2.