Demand-Supply maintains transparency and showcases visibility via the Transportation Management System
The demand-supply
chain is extremely important for the transport departments and technology plays
a major role in keeping the transparency intact for the flow to be easier. This
is where the transportation
management solutions come into the picture.
The importance
of the ‘Supply’ chain visibility
The definition of
the transport industry has changed globally and due to that, there are some
problems faced by the supply chain professionals. Statistics say that 73%
people from the transportation industry are troubled about the planning of poor
timetable. Not only this, 33% are concerned about the performance of
transportation partners as per the service level agreements.
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Moreover, 74% were
worried about cost-cutting and checking it at various levels that can impact
revenue generation as well as profits. The supply chain visibility for the
transport companies is mainly to manage and monitor the performance of the
complete demand-supply process. Transparency is the heart of the transport
departments that will keep the supply chain rolling, without any hassles.
Transportation
Management System is the key
Based on a survey
conducted, 54% respondents wished to have extra IT services that would cater
towards better demand-supply visibility. Another survey says that only 35% of shippers
use the transportation management system
and surprisingly 39% of transport & logistics companies wish to update
their ongoing system.
Benefits of an
integrated transport management system
The demand-supplychain becomes more spontaneous and active with the use of the transportation management solutions. The
logistics department disagrees with this and seems to think that the transport
department depends on Excel sheets, numerous phone calls and emails. Regardless
of all this, the transport management
system consists of a lot of data; which can be used as an analysis tool due
to which the supply chain is visible, resulting in the improvement and
predictions of future demand levels, before schedule.
One of the solution is also where it offers a solid ROI. The best form of
cost-cutting is due to spending less on freight via lower cost modes, effective
direction-finding and better negotiation deals. Surveys also prove that there
is a 6% of freight savings due to the transport
management system and 60% users of the same, show less than 25% of net
savings used up for the investment of the TMS. With the betterment of the
supply chain facility, there are more and added benefits that include enhanced customer
service as well as capture the most-needed data points, partake in analytics
and make alterations as per the understanding of the shippers.
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