Where Do “Cost Vampires” Exist in the Modern Supply Chain?
- Poor visibility that leads to higher carrying costs. A lack of clarity increases the risk of over-and under-ordering, creating a backlash among consumers.
- Inability to understand inventory cycle time. Poor insight into inventory cycle time leads to an ill-equipped dock, not to mention delays in tendering orders for shipping.
- Limited access to carrier data. Failure to put carrier data to use leads to even graver concerns, including double-billing, failure to provide accurate shipment data, and inaccurate rate quoting.
- Inability to use real-time carrier data. Speaking of quotes, inaccurate and outdated carrier information effectively puts current operations behind the times. Instead of relying on the most recent update, shippers need to know where they stand right now.
- Limited reporting of transportation data/invoices and accountability. Lastly, poor reporting capabilities lead to assumptions, creating risk, and adding to freight spend.
- Inability to access omni/multimodal rates. Not all TMS systems can rate every mode at once. This is especially true around parcel and sometimes tariff-based LTL rates. If a shipper must use multiple systems to rate each mode, they often resort to an inefficient, outdated routing guide. To this point, omnimodal rating has reduced costs by 10% and more for some MercuryGate customers. When combined with optimization, immediate multimodal rating for all shipments reduced costs by over 50%. More available rates amount to better savings.
Using a TMS Unlocks Freight Saving
How to Maximize ROI and Savings With Your New TMS
- Use the TMS for every transaction.
- Gather data from all carriers and tenders to understand what is happening.
- Connect systems and services to provide real-time access to information.
- Ensure team members understand how to use the system, taking advantage of vendor-provided resources for education.
- Use data to measure the performance and ROI of the system.
- Integrate labor management and the WMS with your TMS to gain end-to-end control over all functions.
- Onboard new carriers as they become available.
- Use reporting features to automate the back-office processes in managing freight.