Carrier selection for Less-Than-Truckload (LTL) shipments

Abstract

This chapter reviews the basics of carrier selection for less-than-truckload (LTL) shipments. First, the impacts of LTL carrier selection on various strategic, tactical, and operational supply chain planning decisions are discussed. Then, the key principles of LTL carriers and the key carrier attributes LTL shippers account for in their selection of LTL carriers are summarized. A numerical study using a continuous review inventory control model under stochastic demand is presented in order to demonstrate the effects of four key LTL carrier attributes (transit time, transit time variability, and freight minimums and maximums) on a shipper's cost and service level.