Logistics Management - October 2011

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supply chain & Logistics technologyMaximizing software value often takesmore elbow grease than today’s companiesare willing to put into it, yet theseefforts frequently yield results that arehard to overlook in an era where everypenny counts. Frequently run in a barebonesmanner and relied upon for justa handful of functions, transportationmanagement systems (TMS) fall intoa supply chain software category that’sparticularly ripe for optimization.“In many cases, corporations try tofind the low-hanging fruit of the TMS,in search of functions that will providethe most value,” says Greg Aimi,research director of supply chain atGartner. “They then integrate thosefunctions as ‘phase one’ of their TMSimplementation and never go beyondthat point.”Over the next few pages, we’ll helpshippers break out of that TMS shell,determine where the gaps are in theircurrent systems, and come up with aplan of action to fill them on the wayto effectively optimizing their purchase-and-installor on-demand TMSinvestment.Filling the gapsWhether a TMS’ capabilities are fullyoptimized depends on three factors,according to Aimi: The amount oftime the system has been in place; thestrength, involvement, and expertise ofthe team that’s running it; and the levelof sophistication of the software itself.These three factors have the most impacton a firm’s ability to optimize a TMS.A sophisticated TMS that’s been inplace for five years and has been largelyleft to run on its own, for example, isprobably not being leveraged to its fullcapacity.Another factor that prevents companiesfrom squeezing the most from theirTMS investments is a lack of regularmaintenance. Rates, routes, carriers, customers,fuel costs, and other variablesSqueezemore out of yourBy Bridget McCrea,Contributing EditorTMSYour transportation management system (TMS) isinstalled and running, but are you getting the most out ofit? Our technology correspondent helps shippers determinewhere the utilization gaps exist and formulates a plan toeffectively optimize a TMS investment.are in constant flux, and the TMS that’soptimized today won’t necessarily be fullyleveraged a year from now.“Your TMS today is reflective of yourfirm’s current operating environment,”explains Adrian Gonzalez, director ofLogistics Viewpoints, a blog focusedon logistics trends, technology, and services.“Fast forward one or two years.Without current, accurate modeling,you end up with a classic garbage-in,garbage-out problem.” Even worse,says Gonzalez, you may have resortedto faxes and spreadsheets, assuming32 Logistics Management WWW.LOGISTICSMGMT.COM | October 2011
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