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:
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:
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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Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.
1. What are the five flows of SCM?
2. Why are they important TO YOU?
3. How can you map, track, and optimise these flows to serve YOU?
4. What is the importance of difference between "Supply Chain" and "Value Chain"?
5. What are the stellar case studies of each of the five flows?
ABOUT THE PRINCIPAL AUTHOR
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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Our Quick Notes On Five Flows Of Supply Chain Management
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WHAT OTHERS ARE SAYING
Our Clients say it better than we ever could:
Our Clients come from a variety of industries – yet they have a common element. They rarely rest on their laurels, and are always looking to do better.
OUR PROJECTS - EFFECTIVE TRANSFORMATIONS
In the last 20 years we have completed more than 500 projects. Click below to see a sample of our projects.
THE 5-STAR BUSINESS NETWORK
If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.
OUTPERFORM OUTSOURCE OUTPROFIT
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.
UNCHAIN YOUR CORPORATION
Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.
Successful Business Transformations Are Difficult, Yet Rewarding.
Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.
Modern Supply Chains Integrate Businesses And Economies Faster By Systematic Information Sharing From Internal And External Sources.
Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.
GREEN SUPPLY CHAIN – AN ACTION MANIFESTO
It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.
Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains.
It is also widely agreed that consumers will increasingly prefer to buy more and even pay more for products or services provided in an environmentally sound manner.