Midsize and enterprise shippers often utilize a multistop freight model to increase efficiency, reduce carbon emissions and cut costs. While traditional multistop options have served many shippers well, there is an even more impactful option on the market today: Flock Freight’s Shared Truckload.
What is multistop freight?
With traditional multistop, shippers can consolidate shipments into fewer trips by coordinating less-than-truckload (LTL) shipments from either multiple origins to a single destination or from a single origin to multiple destinations. This approach essentially allows shippers to pool their own freight.
This is typically managed manually via spreadsheets or handled via TMS optimization tools. Manual processes are time-consuming, frustrating and prone to human error. At the same time, TMS-generated solutions often leave savings on the table because they lack access to a broader freight network beyond their own. Furthermore, most traditional multistop optimization engines often rely on stale master data, failing to uncover more dynamic real-time cost-saving opportunities. Or worse, they generate infeasible solutions based on unrealistic route schedules.
What is Shared Truckload (STL)?
Flock Freight’s Shared Truckload offering improves on the traditional multistop models, employing a more dynamic machine learning-based technology purpose-built for multishipper load consolidation that unlocks brand new opportunities to reduce costs and raise service levels.
While traditional multistop routes rely solely on a shipper’s own freight, Shared Truckload leverages a broader national network of poolable shipments. This means Flock Freight can match shipments not just within a single company’s network but across thousands of complementary customers’ freight in real time and as market conditions evolve.
By tapping into its decade-strong network and proprietary technology, Flock Freight significantly increases pooling probability for shippers, generates more efficient routes and improves truck utilization, ultimately leading to lower rates. An analysis of over 17,000 shipments showed that Flock shippers saved an average of 30% through this method versus the truckload alternative.
Efficiency at scale
In the most recent evolution of their FlockDirect Shared Truckload offering, Flock is now conducting facility and network-level analyses for shippers to determine more comprehensive optimization opportunities within their entire network – as opposed to simply evaluating each shipment on its own.
“This approach is fueled by improvements to the company’s proprietary technology as well as its ever-rising mountain of historical data specific to freight consolidation and pooling. The more shipment data ingested, the better the optimization outcomes over time,” Flock Freight CCO Chris Pickett said. “By analyzing a shipper’s entire network instead of a single shipment, we can build more efficient multistop loads and then fill the remaining empty space with other customers’ freight.”
Flock Freight’s platform optimizes freight at the shipment, facility and supply chain network levels, with each level offering increasing value. With more predictable volume, Flock can quantify the impact of moving the freight via Shared Truckload and pass those savings along to their customers.
Flock’s Director of Pricing, Shawn Maykuth, added, “I’ve analyzed billions of dollars worth of freight in my career, and the network-level optimization we’re achieving at Flock has unlocked unprecedented opportunities. While the industry recognizes the value of multistops and minimizing empty space, our unique ability to quantify the impact and illustrate unforeseen efficiencies is what truly excites our shippers.”
Carrier sentiment: Turning hesitation into partnership
Carrier buy-in can be a hurdle in traditional multistop freight because shipments often do not follow a set of streamlined operational procedures, making them difficult for carriers to handle. Routes can also be unreliable, built around unrealistic transit times given appointment constraints and inaccurate dwell time estimates. This is where Flock Freight stands out.
Flock Freight has invested heavily in building strong relationships with carriers, as well as designing operational procedures specifically for Shared Truckload. These procedures ensure that STL shipments move seamlessly through a carrier’s workflow, minimizing disruptions. Moreover, carriers are able to maximize their own profits, earning up to 25% more per haul compared to more traditional one-pick/one-drop freight – on both a per-mile and per-day basis.
These streamlined processes, more reliable routes and increased financial opportunities naturally lead to stronger partnerships and better service for shippers, creating a win-win situation for the entire industry.
Traditional multistop vs. Shared Truckload example
Flock Freight’s recent shipment analysis identified Shared Truckload opportunities that traditional multistop solutions missed. For four shipments from California to Georgia, a TMS optimizer tool resulted in three separate loads with a total mileage of approximately 6,938 miles.
In contrast, Flock’s STL technology optimized the routes into two Shared Truckloads, reducing the total mileage to 4,571 miles, eliminating the need for LTL and truckload shipments, and saving costs.
TMS Optimizer Tool Outcome
Flock’s Shared Truckload Technology Outcome
The post Flock Freight’s Shared Truckload service outperforms traditional multistop truckload programs appeared first on FreightWaves.
