Line Haul Optimization

What is a Line Haul or Line Haul Network?

In logistics, Line Haul refers to the movement of freight with any mode of transport by land, air or waterway between distant cities. Freights can vary in volume and weight, from small documents to heavy pallets. Courier, Express and Parcel (CEP) providers and 3PL Less than Truckload (LTL) carriers collect freight from various senders at a given depot. At that depot, freight with common destinations is consolidated in trailers for (long-distance) transport to a sorting facility (hub) or one or more of another depot type (ex. distribution facilities). At a sorting facility, freight coming from different origins is sorted and consolidated again for further transport to its destination. The supporting infrastructure of hubs, depots, tractors, trailers, dockworkers, and drivers is collectively called the Line Haul Network. The freight transportation sector is able to run high volume operations efficiently via such a network.

Business specific characteristics of a Line Haul Network in freight transportation are:

• A high level of variety in product types
• Specific senders and receivers
• Strict service level agreements

Why optimize a Line Haul or Line Haul Network?

Freight transportation companies face two main challenges simultaneously: (1) keeping to the strict service level agreements (SLAs) they have with their customers, and (2) keeping costs down. As long distance transport movements increase in answer to the growth in e-commerce, these challenges become even more difficult. Optimizing a Line Haul Network can lead to considerable savings on logistics costs, and without compromising SLAs. It is, therefore, a game changer in becoming, or staying, competitive. Some examples of the complexity in creating an efficient Line Haul Network include:

• Taking accurate accounts of the number, location, and capacity of the sorting centers
• Identifying the optimal routing of each flow from origin depot to destination depot
• Calculating and controlling the costs of owned resources, and the tariffs from sub-contractors

How to optimize a Line Haul or Line Haul Network?

A Line Haul Network is a highly complex system marked by several dependencies between the orders, the routes, the resources, and disruptive events. Advanced optimization technology is therefore a crucial strategy to achieve efficiency in planning and execution.

To optimize a Line Haul Network, it is necessary to:

• Combine analyses of long distance transport and last mile delivery operations
• Collect data on fluctuations in volumes and other issues that disrupt transport networks
• Determine, based on reality, how many hubs are needed and where they should be located

What are the results of optimizing a Line Haul or Line Haul Network?

In logistics, Line Haul refers to the movement of freight with any mode of transport by land, air or waterway between distant cities. Freights can vary in volume and weight, from small documents to heavy pallets. Courier, Express and Parcel (CEP) providers and 3PL Less than Truckload (LTL) carriers collect freight from various senders at a given depot. At that depot, freight with common destinations is consolidated in trailers for (long-distance) transport to a sorting facility (hub) or one or more of another depot type (ex. distribution facilities). At a sorting facility, freight coming from different origins is sorted and consolidated again for further transport to its destination. The supporting infrastructure of hubs, depots, tractors, trailers, dockworkers, and drivers is collectively called the Line Haul Network. The freight transportation sector is able to run high volume operations efficiently via such a network.

Business specific characteristics of a Line Haul Network in freight transportation are:

• A high level of variety in product types
• Specific senders and receivers
• Strict service level agreements

Why contact ORTEC to optimize a Line Haul or Line Haul Network?

ORTEC is one of the world’s leaders in optimization software and analytics solutions, also for planning and optimizing Line Haul Networks for 3PL Less Than Truckload (LTL) carriers and Courier, Express and Parcel (CEP) Providers. Which Line-Hauls are unloaded and loaded at each hub location? How can assets best be utilized? Which schedule is most efficient? Contact ORTEC to find out more about our extensive studies and experience with optimizing Line Haul Networks.