INSTITUTING A CULTURE OF CONTINUOUS
IMPROVEMENT IN TRANSPORTATION MANAGEMENT
Transportation Management Systems (TMS) play a critical role in both domestic and global supply chains. Charged with planning freight movements, handling freight rating and shopping across all modes, selecting appropriate routes and carriers, and managing freight bills and payments, TMS enables streamlined planning, optimization, execution, and settling of global transportation movements. By replacing manual processes, spreadsheets, and phone calls, a TMS lowers freight spend by approximately 5 to 10 percent via greater visibility and optimization. But not all organizations are “optimizing” their TMS investments.
In fact, just one in four companies fully leverages the features and functions of its system. By ignoring a TMS’ status as a platform for innovation and continuous improvement, the other 75 percent of companies miss out on key benefits and cost savings. Those that do leverage their TMS’ rich capabilities also gain access to real-time decision-making – the Holy Grail for companies in today’s competitive business environment.
“In many cases, corporations try to find the low-hanging fruit of the TMS, in search of functions that will provide the most value,” said Greg Aimi, research director, supply chain, at Gartner in Boston, in Logistics Management. “They then integrate those functions as ‘phase one’ of their TMS implementations, and never go beyond that point.”