How to Optimize Supply Chain to Improve Your Freight Flow Logistics

Supply Chain Optimization For Procurement - Shipping Managers Review Documentation

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. They are learning how to optimize supply chain processes to improve freight flow logistics.  

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 Supply Chain Collaboration

Procurement and shipping managers need collaboration. E-commerce is forcing the industry to ramp up its game to increase its throughput and ensure perfect orders. The orders need to be on time and in full (OTIF), and their ability to do it instantaneously is under a microscope in the industry. Supply chain optimization relies on management choices and upgrading to the right systems to increase profitability.

How a TMS Enables Collaboration to support Freight Flow Logistics

A transportation management system (TMS) helps boost supply chain optimization for carriers to shippers. Some of the instances in which a TMS enables collaboration include:

It helps when teams realize how to optimize supply chain is through 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.

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how to Optimize Supply Chain Always Goes Back to Inventory Management

Supply chain optimization also needs the best inventory management. The need for functional and optimal control is essential for all supply chains that have been and will continue to be affected by the Amazon Effect. Remember, the Amazon Effect refers to the impact of e-commerce and the online digital marketplace. This is an alternative to the traditional way of shopping and has changed the patterns and expectations for consumers. The only way to overcome this “Effect” is by keeping inventory full and replenished without breaking the transportation budget.
As such, proactive inventory management within the TMS will make or break businesses. This may also affect their business with you as a carrier. Effective inventory management will prevent shippers from searching elsewhere. And by creating scorecards to measure carrier performance, shippers can know instantly which carriers can best accommodate last-minute or surprise replenishment needs too. Supply chain optimization will always come back to inventory management.

Enable More Collaboration and Improve Freight Flow Logistics With the Right TMS Platform

Supply chain optimization is the key to staying relevant and competitive in the industry, it is more crucial than ever to keep systems updated and at peak performance. Supply chain optimization is sure to give you an outlet to trillions of more revenue opportunities in e-commerce growth. Many businesses fail because they do not see the issue with changing. It can be intimidating by breaking the flow of your business. However, the right TMS platform can improve driver performance and the performance of your entire team.

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