Do Not Waste Your Money On Transportation Management System (TMS) Unless You Do This First

Do Not Waste Your Money On Transportation Management System (TMS) Unless You Do This First

On the face of it, thinking logically, there is only one drive for transportation management systems - reducing costs.

That is why there is a common assumption that no matter what TMS you choose, you will come ahead with savings. The system is expected to pay for itself within a few years, if not months.

These systems are expensive, and have a learning curve. We have built many such systems using common tools for our clients.

In each case they delivered cost savings well in excess of what the client paid for the system.

Having said that, I would also like to point out that a bulk of transport dollars are wasted in many companies of moving goods that should not be moved, or carried in the inventory in the first place.

If you handle that problem first - your transportation costs will plummet significantly.

We cover this question in full detail in several blogs because it is a rather deep discussion worthy of its own contemplation. We encourage you to read the following blog posts before we continue this discussion:

3 Latest Developments In Transportation Management System

Once you have read these three posts carefully, you would already have a number of ideas on making changes in your logistics and transportation arrangements.

Now you are ready to consider the right TMS for your operation. Read the following 2 blog posts before you actually invest in a TMS:

2 Quick Tips Regarding Transportation Management System.

Now you are well equipped with the requisite information to start choosing the right TMS and implementing it into your business.

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Vivek Sood

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Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

1. Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain - qualified to take command of any merchant ship, worldwide.

2. Earned a top tier MBA from UNSW at the top of his class.

3. Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.

4. To learn and specialise in supply chain - against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.

5. More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.

6. 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT - these are available in bookstores and universities and libraries worldwide.

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The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.


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Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

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Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

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