Data Accuracy and Load Planning: What Shippers Need To Know
Efficient load planning is one of LTL shipping’s most powerful and underutilized tools. In LTL shipping, trucks are partially loaded at every stop and loads are reconfigured, recombined, and rebalanced at distribution centers. Thanks to a massive, interlocking network of routes and sophisticated software, shipments make their way across the country in a day or two, often on several different trailers along the way.
The History of Load Planning
In the last three decades, we’ve seen the technology used for load planning advance from pen-and-paper to digital system integrations. Today, my team at Old Dominion manages more than 40,000 shipments a day across the United States moving on more than 8,000 trailers, none of which would be possible without the intricate art and science of load planning. Still, many shippers may be unaware of how pivotal load planning is to LTL operations, let alone what a key role they play in creating conditions for effective load planning.
Up until the late 20th century, load planning was done with far less certainty than we enjoy today, and there was a greater need to shift when things didn’t go as planned. The last 20 years have brought significant technological advances to the art of load planning — first from digitization, then analytics, and in the last few years via advanced simulations and machine learning. And in today’s world of ever-more precise load planning, data accuracy and timing have emerged as the two most critical factors for success.
How Data Accuracy Impacts the Art of Load Planning
To understand how complex load planning can be, think of each trailer load as a set of Tetris blocks (individual shipments) matched both by size and weight to fit within the capacity of a single trailer. Every pickup adds to the load, and at each distribution center, the blocks get partially disassembled and rearranged, based on each piece’s destination and delivery timeline. To create true efficiency, you need to know the density and measurements of each piece, along with exactly where it’s going and when it needs to be there. This process ensures all the right pieces get to all the right places within a relatively short time window to build optimal loads.
Now imagine trying to do all of this in a world with less-than-perfect information. The more digital the shipping world has become, the more accurate things have gotten. However, the system still relies on data being entered accurately at the point of origin when each piece of freight is shipped. If, upon pickup, we find out that freight is longer or heavier than expected, it can impact our calculations. Plus, there’s a chance that freight simply won’t fit on the trailer or could make it overweight.
While we’ll always get a piece of contracted freight where it’s supposed to go, these kinds of incidents can create ripple effects that cause delays or force us to reorganize downstream loads. These kinds of inefficiencies consume more resources and can impact pricing.
When we plan our loads, we’re not only making sure that our density is right, we’re also ensuring that the dimensions fit on the trailer, and that the cargo is packed to minimize the chance of damage. We’re also planning ahead based on what needs to come off the trailer in what order and in what location, so the right items get on the next truck to the next location in the optimal load configuration. When we get accurate data on the front end, it makes all the difference in the world. It lets us plan our routes with confidence, so we can make sure things get where they’re supposed to be on time.
The Data Landscape for LTL Shipping Continues to Evolve
The upside of all this is that when our customers provide us good data on the front end, it allows us to improve their operations on the back end. In turn, that changes the way we do business with one another.
Load planning continues to evolve, and customer data accuracy continues to improve. As more customers go digital, more data is available than ever before. The speed of data transmission is also increasing. A few years ago, carriers might have received a single data transmission a day from their customers. Today, we sample customer data multiple times an hour, as new modeling techniques and AI tools expand the range of what we can do with the data. AI makes us nimbler. It gives us the ability to make quick adjustments, reroute packages during transit, and find new ways to keep our promises to our customers. We’re consistently streamlining the process, making it easier for our customers and simpler for our load planners.
New technologies and techniques are important, but it’s all built on a foundation of receiving accurate data from shippers. Load planning is an essential and increasingly sophisticated part of LTL operations.