The fundamental unit of the supply chain, transportation serves as key connection between intra-company fundamentals such as plants and warehouses as well as the link between suppliers and customers. A vital part of supply chain, namely logistics, involves transport utility as the key driver for effective forward and reverse flow and storage of goods and services from the point of origin to the point of consumption in order to meet and even exceed the customers’ requirements. Thus, transport and logistics are parallel for the smooth functioning of integrated supply chain.[/b]
Transport Management System (TMS)
A network of shared value by shippers, carriers and customers, TMS includes the processes of route optimization, freight audit, yard management, shipping execution and carrier management. Transportation management is an integral part of inbound, outbound and reverse logistics with an emphasis on responsive network. Efficient transport management involves the processes of planning for better flow and more savings, operational management such as tracking daily transport and reporting any delays, regular monitoring and maintaining updated documents.
Key Requirements of TMS Software
With digitalization spreading across various verticals of logistics solutions, transport is not left far behind. However, streamlining of transport processes depends on the choice of TMS software. Ideally the software should encompass the following four attributes:
1. Work in tandem with supply chain requirements specific to the company.
2. Cost reduction through the features of better route planning and carrier mix.
3. Scope for flexibility in order to accommodate any changes in delivery plans.
4. Enhancing transparency and accountability with greater visibility across processes.
TMS and Logistics
In the current market scenario, with organizations expanding their geographical footprints across the world, transport logistics should also grow alongside in order to handle larger and more complex supply chains. The impact of new technologies has affected transport logistics as well but companies need to realize that SaaS is a deployment strategy and not merely a procurement model. Hence the strategy has to undertake cost of conversion from existing to new technology and benefits of proceeding with the new system. The procurement model, though focusing on obtaining with effort as opposed to merely purchasing, is not sufficient to meet the requirements of the dynamics of transport in supply chain process. With the help of an efficient transport management system, the logistics structure can receive a boost in the following three broad arenas:
1. Enhance customer satisfaction – A hiccup-free transportation system enables better and customized delivery options thus resulting in increase customer satisfaction to the point of even exceeding customer expectations.
2. Saves time on freight management – As is in the case of temperature-sensitive goods particularly, the time spent on freight management would reduce drastically if transportation schedules of even multiple locations are functioning smoothly.
3. Impacts inventory flows – Timely and regular sending and receiving shipments translates to better inventory planning and inventory forecast. Illustrating this GATI, the Indian logistics giant, boasts of the largest multi-modal connectivity, effectively managing air, rail and sea transportation across over 500 pick-up points within the country and more than 200 countries world over which significantly and positively impacts the inventory inflow and outflow of the company.
Conclusion
TMS is a competitive differentiator which may be used in global operations as well even if the vendors are outsourced, especially in a digital supply chain. In such cases, TMS can not only streamline operations but also provide crucial data analytics. In conclusion, in today’s dynamic markets, logistics companies should focus on the import of transportation as well along with technological endeavours and workforce management in order to achieve excellence in operations.
Transport Management System (TMS)
A network of shared value by shippers, carriers and customers, TMS includes the processes of route optimization, freight audit, yard management, shipping execution and carrier management. Transportation management is an integral part of inbound, outbound and reverse logistics with an emphasis on responsive network. Efficient transport management involves the processes of planning for better flow and more savings, operational management such as tracking daily transport and reporting any delays, regular monitoring and maintaining updated documents.
Key Requirements of TMS Software
With digitalization spreading across various verticals of logistics solutions, transport is not left far behind. However, streamlining of transport processes depends on the choice of TMS software. Ideally the software should encompass the following four attributes:
1. Work in tandem with supply chain requirements specific to the company.
2. Cost reduction through the features of better route planning and carrier mix.
3. Scope for flexibility in order to accommodate any changes in delivery plans.
4. Enhancing transparency and accountability with greater visibility across processes.
TMS and Logistics
In the current market scenario, with organizations expanding their geographical footprints across the world, transport logistics should also grow alongside in order to handle larger and more complex supply chains. The impact of new technologies has affected transport logistics as well but companies need to realize that SaaS is a deployment strategy and not merely a procurement model. Hence the strategy has to undertake cost of conversion from existing to new technology and benefits of proceeding with the new system. The procurement model, though focusing on obtaining with effort as opposed to merely purchasing, is not sufficient to meet the requirements of the dynamics of transport in supply chain process. With the help of an efficient transport management system, the logistics structure can receive a boost in the following three broad arenas:
1. Enhance customer satisfaction – A hiccup-free transportation system enables better and customized delivery options thus resulting in increase customer satisfaction to the point of even exceeding customer expectations.
2. Saves time on freight management – As is in the case of temperature-sensitive goods particularly, the time spent on freight management would reduce drastically if transportation schedules of even multiple locations are functioning smoothly.
3. Impacts inventory flows – Timely and regular sending and receiving shipments translates to better inventory planning and inventory forecast. Illustrating this GATI, the Indian logistics giant, boasts of the largest multi-modal connectivity, effectively managing air, rail and sea transportation across over 500 pick-up points within the country and more than 200 countries world over which significantly and positively impacts the inventory inflow and outflow of the company.
Conclusion
TMS is a competitive differentiator which may be used in global operations as well even if the vendors are outsourced, especially in a digital supply chain. In such cases, TMS can not only streamline operations but also provide crucial data analytics. In conclusion, in today’s dynamic markets, logistics companies should focus on the import of transportation as well along with technological endeavours and workforce management in order to achieve excellence in operations.