Transportation Management Report 2011 - Capgemini

The main IT requirements are:
• Tight and smooth integration of
supply chain processes between
LSP and shipper. Lack of
integration can result in poor order
visibility, shipment, and inventory
status and inability to correctly
invoice services. Tight and smooth
integration is also an enabler to
building trust between partners.
Launching a steady state operation
without supply chain performance
issues is a first indicator of
expected capabilities.
•KPI monitoring with an extensive
management information
dashboard. Logistics software
should be able to support this by
providing best practice KPIs. This
helps the performance management
process by focusing on continuous
improvement. This capability is
also required to communicate
success and to indicate the
bottlenecks in the supply chain.
•Provide end-to-end supply chain
visibility. This enables both
shippers and LSPs to react in
a timely manner to events and
unexpected circumstances.
•Ability to correctly invoice provided
services and handle the complexity
of different rate charts. Besides
being an administrative burden,
invoice checking and nonmatching
invoices feed distrust.
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These criteria need to be an explicit
element in your LSP selection
process. Selecting the right partner
with the right IT capabilities will not
mean you can outsource all your
logistics problems but it’s a first step
in the development of a relationship
with the right LSP.