The domestic and international freight and logistics industry learned hard lessons during the COVID-19 supply chain disruption. To avoid repeating the pitfalls of the pandemic, dozens of freight logistics companies, ocean carriers, ports and related private businesses joined the Freight Logistics Optimization Works, or FLOW.
This public-private partnership is focused on creating and maintaining an integrated view of current and future supply chain conditions.
Though focused on the US, the FLOW database leverages international insight to deliver real value to FLOW members and their customers.
What Is FLOW?
The FLOW program is designed to make US shipping logistics and related data accessible to project participants. Using information gathered from private companies and government agencies, the FLOW database facilitates logistics optimization in real-time.
The data is used in many ways, including:
- To forecast current shipping, port processing, and storage capacity.
- To anticipate delays and be able to mitigate risk at any stage of the supply chain.
- To identify regional shipping, logistics and warehousing trends of concern.
The FLOW database is anonymized, regionally segmented and aggregated, mitigating the loss of any proprietary advantages.
In summary, the program increases supply chain visibility well above the capacity of a single organization, benefiting suppliers, distributors, last-mile freight companies, and, in the end, consumers.
How FLOW Facilitates Logistics Optimization
Program members have ready access to reams of supply chain data that provide actionable insight into real-world shipping conditions. Much of the data is shaped by importer purchase orders (POs), which create starting and end points for products and insight into every touchpoint along the way. Often referred to as supply-side optimization, the process relies on downstream information to realign upstream timelines, shipping speeds and even production volume.
Not all PO data is published in the FLOW database, partially to protect trade secrets or proprietary advantages. Published data start with ocean shipping, which provides roughly 30-day insights with which to improve transportation optimization and planning.
FLOW membership grants insight into anonymized data covering:
- Ocean shipping (location, speed, estimated port arrivals, etc.)
- Domestic ports and drayage.
- Domestic distribution, warehousing, and fulfillment centers.
- Domestic trucking.
- Read more: Onshoring and Reshoring Trends
The Advantages of Supply-side Optimization
Fluctuation in order volumes illustrated by FLOW data paints a clear picture of the current and near-term appetite for goods and services. The benefits of supply-side freight logistics optimizations combine to meet demand while optimizing transportation costs.
For organizations along every point of the supply chain, it allows for increased visibility that improves decision-making in two key ways:
- Maximize the Value of Distribution Assets—Identifying high-capacity facilities, shifting delivery to warehousing near active markets and adjusting transportation speeds to accommodate customer expectations lowers operational costs exponentially. These efforts also improve customer satisfaction by executing a degree of flexibility few logistics companies can deliver.
- Manage Owned and Leased Assets—Tracking national warehousing capacity allows distributors to make more informed decisions about managed logistics assets. Accessing this information informs internal decisions to invest in new storage capacity, drop or renew leased properties or exit certain regional markets altogether.
FLOW as a Data Product
The primary public partner in FLOW is the US Department of Transportation, although one of the most visible entities is a DoT subsidiary. Formed in 1992, the Bureau of Transportation Statistics (BTS) compiles and analyzes data and publishes accurate, relevant information. FLOW data is not publicly available, although the BTS does publish anonymized reports informed by FLOW members and broader industry inputs.
Invested in Supply Chain Resiliency
FLOW membership increased to 75 in 2024, including global distributors and leading freight carriers. Along with giants like FedEx and GE Appliances, the list includes several ocean carriers (Evergreen Shipping Agency, Fenix Marine Services), ten US port authorities, seven terminal operators, and a half-dozen vertically integrated retailers like Nike, Dollar General, and Walmart.
These companies contribute mountains of data daily, and every bit of information adds additional context to global and national freight logistics.
Protect Your Organization’s Supply Chain Resilience
At Tilley Distribution, we leverage global supply chain insights to maximize the value of owned and leased assets on four continents. Combined with proprietary rail, over-the-road trucking and storage facilities, we’re built from the ground up to provide clients with flexible logistics no matter what. Learn more about our supply chain services; contact a Tilley representative today to get started.
