The key to supply chain optimization lies in the ability to integrate the appropriate software platforms. Procurement and shipping managers are collaborating with TMS and other platforms to increase productivity and profitability. The pandemic has brought forth many areas of improvement that managers may have overlooked. And digitalization of all processes is finally reaching maturity and enabling more supply chain collaboration and optimization.
As noted by Supply Chain Game Changer, “Supply chain collaboration is a hot topic today and no wonder: companies that collaborate effectively across the supply chain have enjoyed dramatic reductions in inventories and costs, together with improvements in speed, service levels, and customer satisfaction.” The new age of e-commerce forces companies to look at the systems currently used and upgrade them to stay competitive. Supply chain optimization is dependent on these factors.
Why Procurement and Shipping Managers Need Collaboration
How a TMS Enables Collaboration
- Tracking the full shipment lifecycle. From the conception of the order to the OTIF delivery, a TMS tracks the shipment.
- Intervening when things go wrong. Using these platforms enables team members to be able to take care of those issues when they arise. This prevents delays and further issues with customer service or back-office processes.
- Seeing strengths and weaknesses in real-time. This function allows management to see the process as it plays out. Again, this is essential to preventing issues or delays in shipments and knowing when to consider working with additional carriers, such as regional parcel providers, or increasing carriers’ mix.
- Enabling dynamic and automated route optimization. A TMS also has GPS tracking functions. This allows management to see which routes are more efficient and which do not.
- Increasing the ability to track and improve performance. Using data analytics, shippers can work with their network partners to continuously isolate and correct problem areas.
Supply chain optimization relies on collaboration. And in turn, that collaboration begets peak performance from carriers and shippers alike, leveraging digital freight matching to expand further optimization opportunities based on data.
