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Transportation Management Report 2011 - Capgemini

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Organizational<br />

The core processes or selected<br />

products of a company can be<br />

addressed one after another<br />

depending on the benefits and risks<br />

associated with them. An example<br />

for an air and ocean LSP might be to<br />

arrange their processes in ascending<br />

order of complexity, i.e:<br />

• Air freight import<br />

• Air freight export<br />

• Sea freight import<br />

• Sea freight export<br />

A further level of segmentation<br />

could be introduced by considering<br />

product and services offerings. For<br />

example, commodity products could<br />

be targeted first, followed by more<br />

complex products in a subsequent<br />

phase.<br />

35<br />

Functional domains<br />

The functional domains of TMS offer<br />

another degree of flexibility. In this<br />

context, it is possible to distinguish<br />

between core functionality and<br />

supporting functionality.<br />

For instance, your TMS could initially<br />

be implemented for purchase order<br />

management purposes only. The<br />

transportation core functions would<br />

then be phased in at a later stage. A<br />

typical phased approach could look<br />

as follows:<br />

• Phase 1: Master Data cleansing<br />

and Purchase Order <strong>Management</strong><br />

functionality<br />

• Phase 2: Resource <strong>Management</strong><br />

• Phase 3: Change <strong>Management</strong>,<br />

Subcontractor <strong>Management</strong><br />

• Phase 4: Core TMS functionality<br />

Geographical coverage<br />

Geographical coverage offers another<br />

option for giving the structure some<br />

flexibility. When selecting the target<br />

locations (regions, countries, sites),<br />

it is necessary to look for the right<br />

balance between risk mitigation,<br />

leverage of business benefits, and<br />

gaining rollout and transformation<br />

momentum within the company.<br />

Optimizing the financial<br />

investment flow<br />

To ensure that you can evaluate your<br />

migration options properly you need<br />

to determine the business benefits as<br />

well as the cost of implementation<br />

and migration on a work package<br />

level.<br />

Varying the migration path within<br />

the given constraints allows you to<br />

consider individual options with<br />

respect to the required investment as<br />

well as the resulting business benefits<br />

over time. This allows you to achieve<br />

a cash-flow structure that meets the<br />

company’s individual constraints.<br />

Conclusion<br />

Logistics specialists are faced with the<br />

problem of modernizing an inflexible<br />

application landscape while under<br />

considerable budget constraints.<br />

<strong>Capgemini</strong> can support you with<br />

state-of-the-art methodology and<br />

long-term experience to define the<br />

right transformation approach for a<br />

phased introduction of a TMS by:<br />

Maximizing the use of packagebased<br />

sector-specific solutions and<br />

combining these with individual<br />

elements where required to create a<br />

cost-optimized solution<br />

Using robust architecture and<br />

application components to ensure<br />

sustainability, flexibility, and a<br />

significantly reduced time to market<br />

when integrating future requirements.<br />

Developing a thorough design that<br />

will ensure high flexibility in shaping<br />

the migration path and thus help in<br />

optimizing the investment flow/ROI<br />

to meet the company’s requirements.

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