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Expert Talk
Automating manual processes
Whether your world involves orchestrating
shipments across complex global supply
and demand networks, or simply delivering
goods to local customers, a TMS can
serve your requirements across all areas
of transportation management. Managing
activities such as procurement, load
planning, consolidation, carrier selection,
route optimisation, freight settlement,
and collaboration in a coordinated
fashion is the path to lower cost and
higher quality of service. For example,
one of RedPrairie’s customers experienced
that after implementing TMS it processed
75% of its business without human
involvement. Similarly the TMS helped
the customer better manage its 430-470
daily truckloads across multiple shipping
sites and transportation modes and
resulted in improved customer service
with on-time shipping at 99% and allowing
just-in-time deliveries.
Creating the optimal plan
But gaining the greatest value from your
transportation spend starts long before you
have a load to route or a shipment to tender.
It begins with getting the best possible
rates for your lanes through a structured
procurement process. Truckload (TL), lessthan-truckload
(LTL) and ocean carrier bids
can be modeled into multiple transportation
scenarios to determine the best carrier
options for each lane. A TMS will select
and assign the optimal carriers based on
rates, modes, pre-booked capacity, delivery
constraints and so on.
Maximizing the usage of a private or
dedicated fl eet can be factored in - as can
the joint planning of inbound and outbound
shipments, using consolidated routing to
minimise empty miles and rates. Unused
capacity can be carried over from one
plan to the next to determine whether an
underutilised load should be held for more
freight or if the load needs to be shipped
‘as is’ to meet delivery windows. Systems
can also determine whether freight could
be held at pool points or consolidation
facilities to leverage pre-booked capacity,
or if using market carriers will be necessary
to meet commitments. Automated border
crossings can be factored into route planning
and international shipment documentation
printed accordingly.
38 Link May 2010