Predictive Modeling in Freight Management
Posted by World Trade Distribution
Filed Under: Container Freight
Technology has changed the way nearly every industry operates and the world of freight management is no exception. One of the leaders in the world of operations and supply chain management is Fleet Advantage. This company has been one of the premier names in the world of equipment lifecycle management. Recently, they added a predictive modeling tool to their well-known Advanced Truck Lifecycle Administrative Analytics software package, also known as ATLAAS. The new predictive modeling feature is going to be a major player when it comes to equipment lifecycles in freight management.
An Overview of Lifecycle Management Software
This tool, called Lifecycle Management Software (LMS), uses a predictive modeling tool that is going to change the way consulting in the world of freight management is conducted. Using this tool, consultants will be able to forecast loss and/or profit measurements more accurately. Some of the major factors that are going to play a role in this forecast include overhead costs, gross revenue, current inventory, changes in the frequency of orders, and projected equipment lifecycle. The goal is to use this tool to anticipate problems and costs before they arise, helping companies plan, budget, and executive their competitive strategies more effectively.
Applications of a New Predictive Modeling Tool
For example this predictive modeling tool can help companies identify which trucks are should be replaced. Some trucks might need to be replaced sooner due to possible equipment failures of repairs that might be on the horizon. This tool can also be used to predict when companies need to scale in response to an increase in orders. In this sense, the predictive modeling tool can be used to help freight management companies become proactive instead of reactive. With the ability to set budgets more accurately, leadership teams will be able to maintain a competitive edge in this industry.
A Powerful Addition to ATLAAS
This tool can also be used to help companies set up optimal replacement cycles for older trucks, helping them save money on operations. The goal is to get as much value out of each piece of equipment as possible. When the cost of maintenance and repairs exceeds the value of that equipment, it is time to replace it. Fleet Advantage has used their Lifecycle Management Software to do exactly that. By inputting all of the necessary data, the program can be used to predict the outcome. Using these models, this predictive tool can help companies look into the future. These are calculations that used to be done by hand. Now, it can be done more accurately and in a fraction of time with this tool from Fleet Advantage. This tool leverages a tremendous amount of data that has been pulled from ATLAAS to generate a predictive model based on historical precedents. Some of the variables it uses include fuel price, fuel degradation, repair costs, maintenance schedules, and more. In this sense, LMS represents the future of big data in the world of freight management. It will be interesting to see how this tool is going to be applied in the field in 2020 and beyond.