July 24, 2024
Dodge Disruption with Advanced TMS
How can you benefit from 2020’s supply chain management experience?
How can you benefit from 2020’s supply chain management experience?
Dodgeball. Mention the game and almost everyone has something to say. But, have you ever associated it with how supply chain life has evolved from 2020 until now? We have, and it serves as a lesson in enhancing business continuity planning amidst unforeseen chaos, calamities, and emergencies likely to occur in the future.
In the supply chain industry, just as in dodgeball, agility distinguished the survivors of 2020 by their ability to shift in the face of lockdowns, plummeting oil prices, and a buckling stock market. Successful operators scaled their workforce to meet fluctuating demands, negotiated better prices, and optimized routes efficiently. They utilized real-time insights to predict future scenarios accurately and positioned themselves for success. And, often, it was a modernized, intelligent transportation management approach that gave them the critical edge.
Modernized, Smarter, TMS Explained
So, what is a modernized, smarter transportation management system, or TMS, and how can you obtain one? It revolves around two core principles: consistency and transparency in operations.
Consistency in Operations
Consistent, standardized processes and business rules provide a solid footing for your teams regardless of location or market conditions. With well-established procedures supported by common tools and automation, costs decrease, timelines shorten, and growth can be managed predictably.
Transparency
In addition to consistency, with a comprehensive view of your extended supply chain, you can identify emerging opportunities, navigate obstacles as they arise, and optimize routes, loads, and work schedules for maximum performance based on informed business decisions. With all aspects covered, transparency is secured.
From there, a modernized, smarter TMS will help you plan intelligently, using accurate data to analyze more cost-effective routes or simulate responses to various disaster scenarios. Knowing your service and cost trade-offs in different contexts beforehand helps you navigate challenges effectively and gain a competitive edge.
Quality Metrics
Modern TMS capabilities enable quality metrics that differentiate your brand in the eyes of customers. Real-time track-and-trace capabilities manage customer expectations by considering variables like service hours, traffic, weather, speed, and lane factors. Dynamic price discovery supports effective negotiation of shipper-carrier contracts based on real-time prices and freight capacities. Evaluating carrier performance metrics, including punctuality, driver safety, billing accuracy, and claims, helps build strong relationships with top performers, ensuring a robust business foundation moving forward.
Upping Your Game
The first step towards achieving an intelligent, modernized TMS is conducting a comprehensive assessment of your current position and future needs to enhance competitiveness. You might already have a functional system that requires additional features to boost performance. Alternatively, your business processes may need restructuring for consistency across operations. In some cases, acquiring a new set of tools covering the spectrum of Transportation Management—from software and automation to processes, controls, and procedures—is necessary.
In any scenario, partnering with a qualified supply chain systems expert for objective insights and guidance is essential to perfecting your game. Seek a team that applies an agile implementation methodology and won’t require massive, costly customizations to get you to your goal. Ensure alignment with your business culture and objectives for a successful partnership.
With an eyes wide open approach, you can avoid being hit by surprises and effectively make it to the next level of excellence in the supply chain game.
