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Expert Talk
IN FOCUS
Many organisations are driving
down costs by introducing a
transportation management system
(TMS) into their business. Nick Berry,
Executive Director at RedPrairie, argues that
while TMS can help increase effi ciencies
across the business, it can also improve the
customer service experience.
According to the Council of Supply Chain
Management Professionals, transportation
costs soared to 4.7 per cent of sales in 2008,
while total logistics costs, including inventory
carrying, warehousing, administration, and
customer service costs, were 9.3 per cent of
sales for the average company. With such
large sums being spent, logistics and supply
chain directors need to ensure costs are
as low as possible while meeting customer
demands. No wonder AMR Research found
that global TMS spending will grow at a rate
of 26 percent over the next fi ve years.
May 2010 Link 37