Supply chain resilience describes how well and how quickly an organization can return to pre-disruption operational levels when uncertainty or disruption impacts the supply chain.
Any disruption can test a supply chain’s resilience, and a large degree of resilience lies in agile processes and responsiveness, especially during peak seasons and so-called black swan events, which are characterized as unpredictable occurrences that can have potentially severe consequences.
Resilient supply chains provide protection from uncertainty by effectively taking steps to account for any possible deviation in standard operations.
Consider these top 4 ways the use of a transportation management system (TMS) provides supply chain resilience.
1. Increased Responsiveness Enables Supply Chain Resilience
The use of a TMS improves supply chain responsiveness by providing more accountability and visibility into daily operations.
Since fewer manual tasks reduce delays in processing, customers get their orders faster. Such gains also strengthen supply chain performance. Automation within a TMS goes a long way in reducing delays in processing orders and securing capacity faster. These are critical concerns in mitigating disruptions.
2. Reduced Freight Costs Help Allocate Funds for Investments to Maximize Profitability and Efficiency
Utilization of an enterprise TMS reduces freight costs. Any savings in freight costs improve the bottom line and frees-up resources for additional investment in the supply chain. Simplified operations reduce the risk of delays while also speeding delivery.
3. Centralized Logistics Management Transcends Geographic Restrictions
Centralized collaboration and communications through a TMS also reduce barriers to freight management and more. Moreover, increased transparency further increases supply chain responsiveness. More responsiveness builds better business relationships.
As explained by Garrett Applegate of Supply Chain Brain:
4. TMS Deployment Generates Data to Measure and Improve Supply Chain Resilience
Centralized portals for suppliers, vendors, and customers increase collaboration and boost service levels.
Easier-to-use systems make diversification of carriers and suppliers simpler. Increased insight through analytics promotes contingency planning for supply chain shocks.
In today’s age, data is power and helps managers understand what needs to happen to drive maximum efficiency and return on investment for implementing a TMS.