The state of the freight market continues to change in response to the global supply chain crisis amid the novel coronavirus outbreak. According to the Department of Transportation, spot rates are up across the board, especially comparing March 2020 and the start of April 2020 to the same time in 2019. Furthermore, spot load posts have risen 39.1% in March 2020 compared to February 2020, and capacity is already at its breaking point. However, the use of software-as-a-service (SaaS) platforms, which reside in the cloud, including a transportation management system (TMS), can help. Using a multimodal SaaS TMS can provide flexibility and pivot capability for shippers and logistics service professionals (LSPs) in need of relief. To understand this potential, shippers and LSPs need to understand the challenges associated with poor flexibility and disjointed systems, how multimodal SaaS TMS capabilities add supply chain agility, and the best practices for utilizing multimodal SaaS systems to improve supply chain performance.
Challenges of Poor Flexibility and Disjointed, Legacy Systems
Multimodal SaaS TMS Capabilities Add Supply Chain Agility
The flexibility is clear. Successful use of multimodal capabilities has reinvigorated interest in the innovative shipping model in Europe, explains Inbound Logistics.
Best Practices for Using a Multimodal SaaS to TMS in Your Supply Chain
- Connecting all supply chain assets to the cloud-based TMS to provide a true, end-to-end picture of the health of your supply chain.
- Leveraging the power of big data analytics to understand efficiencies and opportunities for improvement within multimodal shipping.
- Diversifying your carrier and supplier base, increasing cargo space and adding value to multimodal shipping options.
- Rating all shipments for all modes, including single mode versus multimodal, to determine the best rate that meets the needs of the shipper and customer.
- Getting all supply chain partners to use a similar system when working with your company, implying the use of supplier and vendor portals to further increase transparency into multimodal shipping.