Transportation Management involves all aspects of delivering goods to both stores for replenishment as well as to the end-consumer. Below are key modules that support the transportation and delivery to the consumer and stores.
Realize the lowest shipments costs through consolidating orders by size, weight and cube and selecting the best mode and carry carrier based on rate, availability and service level.
Procurement solutions for requesting, evaluating and contracting capacity and rates with carriers in shipping lanes across all modes.
Achieve a close-to “hands-free” execution process by automating the tender, confirmation and tracking processes using exception management.
Supply Chain Visibility
Track parts, components or products in transit from the manufacturer to the final destination in near real-time at a detailed (component) level.
Audit, Payment & Claims
A centralized system for matching carrier invoices to the system rates, initiating automatic payments and filing claims for shortages, damages and discrepancies.
Last Mile Delivery
Delivery fulfillment from a distribution center or facility to the end-user. Most often, last mile logistics involves the use of small parcel or specialized white glove delivery service to the end consumers.
Carrier Selection – Selecting the right carrier does not always mean selecting the lowest cost carrier. Considering all constraints such as mode, transit times, compatibility constraints, availability, carrier commitments, carrier performance and capacity can become very complex.
Load Optimization – Consolidating orders across customers, ensuring freight compatibility, appointment compliance, optimizing the mode and costs can be extremely complex depending on the freight mix. Trying to evaluate all options manually is virtually impossible.
Carrier Capacity – Carrier capacity can be challenging any time but is especially challenging during peak season. With the ever-growing e-commerce market, consumers are having more and more items delivered to their homes straining even the largest carriers delivery networks.
Global Logistics – Optimizing cross border international shipments and ensuring compliance with 10+2, Automated Export System, ACE customs documentation and international shipping documents requires the right data and system.
Exception Management – Exceptions occur during shipping. The challenge is how to proactively identify alternatives and resolve them before they impact the customer.
Item Level Tracking – Visibility of the location of a shipment is not sufficient anymore. Customers want to know where a particular item is in the supply chain whether at rest or in motion.
Near real-time Integration – To achieve end to end visibility of inventory at an item level requires integration with multiple internal systems, as well as external carriers, 3PL’s, manufacturers and vendors. Getting reliable and timely data is one of the biggest obstacles keeping companies from achieving end to end visibility.
Match Pay – Matching rated shipments costs with carrier invoices can be very difficult when accessorials are added. Determining if an accessorial is valid and correctly calculated requires collaboration with the carrier and many times the pick up or delivery location.
Cost Allocation – Allocation of transportation costs back to the SKU level or department can get complex as most businesses have their own unique business rules.
Data Management – The sheer amount of data involved in putting bids together and evaluating carrier responses is overwhelming. The process of selecting carriers requires aggregating and analyzing detailed data from multiple sources against numerous variable and metrics. To truly optimize sourcing, benchmark data, historical volume, carrier performance and capacity, data by lane should be included which increases the amount and complexity of data.
Contract & Rate Management – Once the contract is awarded, ensuring rates are correctly loaded into the TMS system and tracking carrier compliance to contract terms (i.e. capacity commitments, service level agreements and tender response time) are difficult without the correct software and integration to TMS systems.
Shipping Costs – Last mile deliveries can account for up to 50% of the total transportation cost and consumers expect free shipping even for white glove items. Local delivery companies are being utilized for white glove delivery, but this is costly and erodes overall margin.
National Carrier – The market does not yet have proven national-scale last-mile providers; especially in white glove delivery. Given the ongoing maturation in this space, there is little consistency in delivery service and tracking information.