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Cooperative Routing May be the Answer to Rising Fuel Costs and Deadhead Miles

A core component within Oracle Transportation Management 5.5 offers unique load modeling capabilities that can help shipping managers schedule full loads on company vehicles, or compare the costs of using third-party shippers when empty trailers could make using company-owned trucks uneconomical.

Oracle Transportation Cooperative Routing is designed to address the growing need to efficiently manage all owned, leased, and contracted transportation assets in a logistics network so that companies can increase fleet utilization and decrease transportation costs.

"The software lets a company determine when to best deploy their own resources versus when to use the resources of others," says Derek Gittoes, Oracle's director of transportation product strategy.

Optimizing Schedules Drives Down Fuel Costs
"The need of the market now centers around coping with rising fuel costs and driver scarcity, and what can be done to better manage assets," says Srini Rajagopal, Oracle's product strategy director for logistics. "This solution addresses those questions directly."

He adds that because high-volume shipping lanes often serve a company's best customers, optimizing scheduling in those areas ultimately assures high service levels for this important group.

More Capabilities to Come
The latest Oracle Transportation Cooperative Routing capabilities are the first in what will be a continuing evolution of the product, Rajagopal says. In the months ahead, Oracle will add tools designed to allow transportation planners to optimize routes as they enter new orders. "We're building systems that can automatically execute the optimizations," he adds. "The systems will do this seamlessly with engines that automatically assign freight to each route."

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