A transportation management system (TMS) is a subset of supply chain management (SCM) that deals with the planning, execution and optimization of the physical movements of goods. In simpler terms, it’s a logistics platform that enables users to manage and optimize the daily operations of their transportation fleets.
A transportation management system, or “TMS,” is a platform that’s designed to streamline the shipping process. It is a subset of supply chain management concerning transportation solutions. A TMS allows shippers to automate the processes they have in place and receive valuable insights to save time and reduce spend on future shipments.
Distribution companies, e-commerce organizations and anyone else that moves freight on a regular basis realizes there are many moving parts to the shipping process, both literally and figuratively. From quoting to delivery, those shipping freights are almost always looking for ways to optimize spend and improve processes. Thanks to transportation management systems (TMS), shippers have a solution on their side to do just that.
TMS is offered as a module within enterprise resource planning (ERP) and SCM suites and helps organizations move inbound — procurement — and outbound — shipment — freight using tools such as route planning and optimization, load building, operations execution, freight audit and payment, yard management, order visibility, and carrier management. The ultimate goals of using a TMS are to improve shipment efficiency, reduce costs, gain real-time supply chain visibility and enhance customer service.
Typically, TMS serves both shippers and logistics service providers. Manufacturers, distributors, e-commerce organizations, wholesalers, retailers and third-party logistics (3PL) companies are some of the major users of TMS software.
TMS has gained traction over the past decade, as it has emerged as an enabler of seamless global trade and logistics management. By enabling information exchange across functional silos; amid geographically disparate operations; and in various languages, currencies, and business units, it has developed into an enterprise software that is finding growing appeal. Furthermore, its functionalities make it suitable for organizations that not only have complex logistics operations, but also those that may have basic transportation needs.
Given the factors above, a 2016 Gartner report predicted that the global TMS market will grow at a compound rate of 6.95% and reach £1.72 billion by 2019, up from £1.23 billion in 2014.
TMS handles four important operations of transport management:
Planning: Defines the best transportation strategies based on specified parameters, which would be of higher or lower importance as per the user policy. This includes transportation expenditure, minimum stops possible to guarantee quality, shorter lead-time, flows regrouping coefficient and so on.
Transportation execution: Enables the transportation plan execution. This includes carrier-rate approval, carrier sending, electronic data interchange (EDI), etc.
Transportation follow-up: Permits the following up of any administrative or physical operation regarding transportation. This includes event-by-event transportation traceability, receipt editing, customs clearance, invoicing as well as reserving documents, transport alerts delivery, etc.
Measurement: Includes or should include a strategic key performance indicator (KPI) report functionality for transportation.
Standard TMS software modules consist of:
Load optimization
Route planning and optimization
Delivery
Freight audit, payment, etc.
Yard administration
Advanced shipping
Order visibility
Carrier administration
TMSs are intended to reach the goals mentioned below:
Minimize expenditures by means of more effective route planning, load optimization, carrier combination as well as mode selection.
Enhanced accountability with exposure to the transportation chain.
Better flexibility to make modifications in delivery plans.
Realization of important supply chain execution demands.
Benefits of TMS
A fully deployed transportation management system can benefit organizations in the following ways:
Transportation order planning and execution: TMS integrates well with enterprise order management, warehouse management and purchasing systems, customer relationship management (CRM), supplier relationship management (SRM), and other systems for managing transport demand. It enables users to plan and manage both international and domestic shipments and determines the cheapest and most efficient carrier and mode using better route planning, load optimization, carrier mix and mode selection.
Technological capabilities: With a transportation management system, you as the shipper will have the technology you need to make routing decisions based on quotes, transit time and carrier mix. This centralized location for quoting will eliminate unnecessary stress and time spent during the booking process.
Simplify processes: A TMS can help to simplify the carrier selection process by allowing you to evaluate the merchandise being sent and matching it with a carrier in the network. By managing this entire process in one place, you will be able to revisit past shipments and quickly match similar loads to the appropriate carriers.
Supply chain visibility and better control of inventory management: TMS enables users to track and monitor the lifecycle of orders and shipments in real time and get status updates on each. This offers users an accurate forecast for the inventory and improves the visibility and accountability of the supply chain network.
Reduce invoice errors: By automating the freight payment and audit processes, users can reduce errors that may arise from manual procedures.
Track freight: With a TMS, you can track freight that’s on the road and even receive alerts to any transit exceptions or unforeseen delays from one location. It’s impossible to control human error or Mother Nature, however, a TMS will let you see when delays are occurring and why.
Transport intelligence: Most TMS software offers users extensive insights and reporting capabilities that provide them with detailed visibility into freight data and metrics to help pinpoint any discrepancies. With this data, users can make the necessary changes to improve service delivery and reduce cost, and they can also create reports.
TMS challenges.
Keeping quotes organized: If you’re working with a number of different shipments, you don’t want to be on the phone or jumping from website to website asking for rates from the carriers in your network. Dialing different carriers and requesting quotes can be a time-consuming process, taking you away from other aspects of the business that need attention.
Selecting the best carrier: Not all shipments are the same. Sometimes, shipments are time or temperature sensitive, require special delivery services or need to be handled with extreme care. As a result, not all shipments should be handled by a single carrier. While some carriers might be best-suited to handle long hauls, others might offer the specialized services you need for a small added price.
Tracking shipments: Businesses don’t always use the same carriers for all their freight. It’s common for a number of different shipments to be in transit aboard different company trucks all over the map. Consequently, the freight tracking process can become very challenging. Without a TMS, you or someone within your organization may have to enter shipment numbers into forms on a number of different carrier sites.
Gathering insights: Without a TMS in place, you may have a general gut feeling of who the cheapest carrier has been over the past year, or which carrier had the highest percentage of on-time shipments. However, without technology on your side, it’s hard to know for certain.
Transportation management systems can exist either on premises or in the cloud, often as SaaS.
What is SaaS?
SaaS stands for at least three different “as-a-service” offerings. The original use of the acronym was to refer to Software as a Service. The term has since been used in reference to Storage as a Service and Security as a Service.
Other “as-a-service” offerings include Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). The combination of these two with Software as a Service is sometimes called the SPI model (for SaaS, PaaS, IaaS). The whole collection of things available “as-a-service” is sometimes referred to as XaaS (which is variously said to refer to “X as a service,” “anything as a service” or “everything as a service”).
Though organizations generally prefer TMS in the cloud due to the increasing use of connected devices, a traditional on-premises deployment is sometimes still preferred by large manufacturing and distribution firms that may have higher security requirements and want day-to-day control of TMS servers.
TMS software providers
Although TMS is commonly offered as a part of ERP or SCM platforms from large vendors, there are also sellers that exclusively provide specialized, stand-alone TMS products
Additionally, there are TMS service vendors that provide not just the technology, but also services to the shippers to run their daily transportation operations. In this arrangement, however, shippers retain control over the key relationships between carriers and customers.
Transport Manager
Transportation managers ensure goods are shipped and delivered safely and efficiently. Transportation managers are also known as traffic managers, fleet managers, or freight coordinators. Employers of transportation managers include freight companies, manufacturers, warehousing organizations, and government agencies. Transportation managers utilize their communication, problem-solving, and time management skills to deliver products according to customer requirements.
Skills & Training: Skills required for logistics & transport
While a logistics manager has responsibilities that can vary from one company to another, we can agree that it’s not an easy task. Logistics managers have the crucial role of ensuring things go smoothly no matter what. To establish a good career in logistics, you should follow some skills that you must work on and keep in mind at all times.
Generic skills
Whatever the background, the essential skills are:
Commercial awareness
Numeracy
Good problem-solving skills
Ability to think quickly, logically and analytically.
An appetite for learning new skills is also sought after, alongside project management and team working skills.
Excellent written and verbal skills are required supported by the ability and to present thoughts clearly and convincingly.
There are certain personal qualities and core competencies necessary for success. These can be broadly grouped into technology-related, people-related and general management skills.
Technology skills
Information technology plays a key role in the management of the supply chain and is an equally important tool to those involved in transport management and transport planning. Technology-related skills are therefore essential to all managers.
IT literacy – is the very minimum requirement for any manager today. Managers must be able to understand how information systems and technology can improve operational efficiency and competitiveness. In some cases advanced aptitude will be very helpful, for example in computer modelling or in project management.
Management information systems – all organisations use information technology to store data and information. Management information systems (MIS) are at the centre of everything we do, but you should not be put off if you are not a ‘techie’. What employers would not expect you to be writing programmes but rather to apply your analytical skills to get the best from the system to make the operations run smoothly.
People skills
People management is no less important to the success of an operation. Changes in union relations, new legislation, new patterns of working and the constant drive for higher productivity make enormous demands on managers. There is a strong emphasis on the importance of customer care across both sectors, and an ability to see the picture from both sides is a useful skill.
Leadership – taking people with you, by being consistently clear on objectives, valuing the contributions of staff and colleagues and gaining their respect.
Communication – ensuring that those you deal with (whether customers or colleagues) always understand what you mean and importantly that you listen to what others says. One of the biggest areas of conflict is ineffective communication.
Team-building – motivating and developing people to work effectively together to achieve the desired result, including effective communication, full participation and maximum delegation with appropriate support and guidance.
Interpersonal skills – these are always high on the professional agenda and skills and qualities that are especially important are enthusiasm, energy, drive, perceptiveness, analytical ability, calm, tenacity, adaptability and resilience.
General management skills
The modern workplace is a demanding environment that requires people to think on their feet to meet the daily challenges that come their way. This requires stamina back by strong skills in the following areas:
Numeracy – with increasing sophistication, the need for numeracy becomes more essential and whilst not necessarily looking for a mathematics graduate, the ability to understand and analyse data is very important.
Problem-solving – the ability to analyse the hard facts, the hunches and hearsay, and arrive at a logical, workable conclusion.
Decision-making – having the ability to take often-vital decisions is essential to any management role, and this depends on quick and effective appraisal of relevant data, empathy and judgement. Failing to take decisions is never acceptable!
Project management – such skills are of growing importance across both logistics and transport as people increasingly work in cross-functional teams.
Forward Thinking
As a logistics manager, you must develop the ability to make accurate predictions of the possible needs of your company, as well as outcomes of actions made anywhere in the entire supply chain. Such skill will allow you to act faster, see risks that may arise, and develop contingency plans for problems that may or may not arise. Always think and plan ahead. As the old saying goes, it’s better to be safe than sorry.
Extensive Industry Knowledge
Equipping yourself with information on the latest happenings and trends in supply chain is essential to be an effective logistic manager. Given that it is an ever-evolving industry, you as a logistics manager, must ensure that your company’s supply chain is running in the most efficient way. Take time to do research on other companies’ processes, and benchmark on their best supply chain practices.
Team player
Being a good logistics manager is acknowledging that the success of every aspect of the supply chain is a group effort. Forbes offers ways you can be a leader to your team effectively, but you can start by allocating tasks wisely, paying attention to the team’s efforts, and learning to commend good work among your teammates. When it comes to working with other teams or units in the supply chain, it pays to treat everyone with respect and professionalism.
Sound Decision-making
A logistics manager like you must be able to make sound decisions and do it FAST. Although there will always be unforeseen circumstances when in the supply chain industry, being as prepared as possible can help you make better decisions. If you think you are not the best decision-maker, don’t fret just yet! This skill, along with a few more in this list, can be learned and mastered as you go along in your career in logistics.
Accountability
Even just by the sound of it, a logistics manager seems like an imperative position in a company. But just like any other position, it has its fair share of consequences. When things did not go as planned, logistics managers must be ready to take responsibility for the blunder. A good logistics manager doesn’t play the blame game and must know when and how to own up one’s mistakes and even take a bullet for the teammates and the company.
Quick Follow-through
Once you’re done with mastering the art of being organized, one thing you also have to learn as a logistics manager is following up with each component of the supply chain and making ensuring an important delivery gets to where it ought to be. Get involved in the process from the start right until the very end. If a problem arises along the way, take note of this and find possible solutions you can use, just in case it happens again in the future. Experience can be a very good teacher in the logistics industry
The challenges faced by the transport industry in the UK
In the present scenario of global economics, logistics play a key role in facilitating trade and, by extension, ensuring the success of business operations. However, changing consumer demands, complex business models and growing client demands are just some of the top factors that pose a challenge in streamlining logistics management. So, how can logistics management personalize a conventionally standard service? Well, that is perhaps the top challenge that the industry has been facing in the last few years among others.
In their struggle to ensure optimum results, here are the top challenges faced by logistics managers today:
Cutting Transportation Costs: Growing fuel prices increased wages, and peaking inflation indexes all work in tandem to increase transportation costs daily. Cutting a few corners here and there does not always help in meeting the cost cutting goals for transportation. Adopting a strategic approach to eliminate or reduce bottlenecks can prove pivotal in revamping network designs and consequently cutting down on transportation costs.
To implement these strategies well, logistics managers need reliable information on existing and future orders. Using a visibility software can help in simplifying these challenges. For a small business, relying on a cost-effective third-party transportation agency that caters to air, ocean, rail and road transportation is sometimes the best bet for accessing quality services in a cost-effective manner. For one, it rules out the added expenditure of maintaining a fleet of delivery vehicles, paying salaries to the transportation staff as well as dishing out freight charges and other taxes. You just pay a lump-sum to an expert third-party and they take care of the rest.
Processing Enormous Amounts of Information: Logistics managers have to deal with a lot of figures and data on a daily basis, besides coordinating smooth discharge of operations. The scope of their work includes ensuring the safety of the fleet and staff, fleet loading, cross-checking route maps, sanctioning fuel bills and so on. When done manually, this can be a time-consuming and tedious task that can take your focus off from attention to details. Investing in an automated solution or application for data entries, fuel bills, loading and unloading ledgers can go a long way in streamlining operations by allowing logistics managers the luxury of time to look at the finer nuances of operations.
Offering Segmented, Customized Services: Thanks to globalization, logistics management is turning into a multi-layered job where managers are expected to keep tabs on multiple supply chains simultaneously. You don’t just need to deliver goods on time but also offer customized services to different suppliers and customers in terms of packages and pricing. The keyword for success in this scenario is flexibility. Logistics operators need to can offer personalized experiences to multiple segments of customers. Using a software system that can automate the process of projecting different services to different customers can not only save time and effort on the managerial level but also bring added accuracy to data compilation and compliance.
Manpower Management: Manpower is the trickiest of management responsibilities. You must maintain a humane approach toward the employees while keeping the best interest of your organization in mind. That can be a complicated equation in any managerial setup, but especially so in case of logistics management, as the drivers and staff are often placed in different geographic locations to maintain swift supply chain velocity. Decentralization of responsibilities, by appointing logistics managers in key locations, with appropriate work-order management solutions can help in more efficient management. For instance, the work order management module of comprehensive solutions like ReachOut, helps logistics managers manage team utilization, team schedules, show proof of work, generate quotes and invoices and do much more. Managers can easily keep everyone on the same page and notify the staffs immediately about changes or provide them with live info they need.
Compliance with Regulations: Transportation rules, regulations and security norms can vary from city to city, state to state, and quite obviously, from country to country. If you are a business catering to a global clientele, keeping up with these varying rules and regulations and familiarizing your staff with these, can pose a grave challenge.
Collaborating with an efficient audit software can help eliminate these pains and improve your compliance, audit results and lead to quality investigations, thereby saving you from the trouble of getting on the wrong side of the law.
With the landscape of business operation continually changing, there is a shift in the ensuing challenges as well. Staying abreast with these changes and taking preemptive measure to ward off challenges is sign of sound logistics management.
Sharp Fluctuations in fuel pricing
The sharp fluctuation in fuel pricing can be explained by the constant rise and fall in oil. The OPEC (Organization of the Petroleum Exporting Countries), led by Saudi Arabia, has often refused to curb production on the overall market which has resulted in an abundance of crude oil. This increase caused a disparity between the demand and supply of crude (which is later converted into other products such as fuel), with repercussions on fuel prices. The matter is still to be solved.
Driver shortages
Though the future looks bright for the truck industry, the shortage of drivers is a result of various factors. Demographically, a lack of availability has been noted. Low wages have also contributed to a decrease in some drivers. One more important factor is the working conditions which apparently are unsatisfactory, taking into account the dangers and weather conditions while driving in extreme regions.
Expansion in 3PL / 4PL providers
Charging higher prices for providing external services to a company’s logistic operations is a new addition to supply chain. 3PL and 4PL providers are third party and fourth party logistics company which manage part or the complete supply chain distribution. Obviously, if you need them, charges may be higher given that corporations have to cope with increased competition on the market, creating a need to provide better service. Or the service may be out of your demographic area.
Expanding use of technology tools
Many companies are still reluctant to adopt new technologies. Digital technology innovation is sure to transform the trends of supply chain and procurement in the future. However, a slow conversion to technology may give other companies which are digitally equipped, a competitive advantage
A transportation management system (TMS) is a subset of supply chain management (SCM) that deals with the planning, execution and optimization of the physical movements of goods. In simpler terms, it’s a logistics platform that enables users to manage and optimize the daily operations of their transportation fleets.
A transportation management system, or “TMS,” is a platform that’s designed to streamline the shipping process. It is a subset of supply chain management concerning transportation solutions. A TMS allows shippers to automate the processes they have in place and receive valuable insights to save time and reduce spend on future shipments.
Distribution companies, e-commerce organizations and anyone else that moves freight on a regular basis realizes there are many moving parts to the shipping process, both literally and figuratively. From quoting to delivery, those shipping freights are almost always looking for ways to optimize spend and improve processes. Thanks to transportation management systems (TMS), shippers have a solution on their side to do just that.
TMS is offered as a module within enterprise resource planning (ERP) and SCM suites and helps organizations move inbound — procurement — and outbound — shipment — freight using tools such as route planning and optimization, load building, operations execution, freight audit and payment, yard management, order visibility, and carrier management. The ultimate goals of using a TMS are to improve shipment efficiency, reduce costs, gain real-time supply chain visibility and enhance customer service.
Typically, TMS serves both shippers and logistics service providers. Manufacturers, distributors, e-commerce organizations, wholesalers, retailers and third-party logistics (3PL) companies are some of the major users of TMS software.
TMS has gained traction over the past decade, as it has emerged as an enabler of seamless global trade and logistics management. By enabling information exchange across functional silos; amid geographically disparate operations; and in various languages, currencies, and business units, it has developed into an enterprise software that is finding growing appeal. Furthermore, its functionalities make it suitable for organizations that not only have complex logistics operations, but also those that may have basic transportation needs.
Given the factors above, a 2016 Gartner report predicted that the global TMS market will grow at a compound rate of 6.95% and reach £1.72 billion by 2019, up from £1.23 billion in 2014.
TMS handles four important operations of transport management:
Standard TMS software modules consist of:
TMSs are intended to reach the goals mentioned below:
Benefits of TMS
A fully deployed transportation management system can benefit organizations in the following ways:
TMS challenges.
Transportation management systems can exist either on premises or in the cloud, often as SaaS.
What is SaaS?
SaaS stands for at least three different “as-a-service” offerings. The original use of the acronym was to refer to Software as a Service. The term has since been used in reference to Storage as a Service and Security as a Service.
Other “as-a-service” offerings include Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). The combination of these two with Software as a Service is sometimes called the SPI model (for SaaS, PaaS, IaaS). The whole collection of things available “as-a-service” is sometimes referred to as XaaS (which is variously said to refer to “X as a service,” “anything as a service” or “everything as a service”).
Though organizations generally prefer TMS in the cloud due to the increasing use of connected devices, a traditional on-premises deployment is sometimes still preferred by large manufacturing and distribution firms that may have higher security requirements and want day-to-day control of TMS servers.
TMS software providers
Although TMS is commonly offered as a part of ERP or SCM platforms from large vendors, there are also sellers that exclusively provide specialized, stand-alone TMS products
Additionally, there are TMS service vendors that provide not just the technology, but also services to the shippers to run their daily transportation operations. In this arrangement, however, shippers retain control over the key relationships between carriers and customers.
Transport Manager
Transportation managers ensure goods are shipped and delivered safely and efficiently. Transportation managers are also known as traffic managers, fleet managers, or freight coordinators. Employers of transportation managers include freight companies, manufacturers, warehousing organizations, and government agencies. Transportation managers utilize their communication, problem-solving, and time management skills to deliver products according to customer requirements.
Skills & Training: Skills required for logistics & transport
While a logistics manager has responsibilities that can vary from one company to another, we can agree that it’s not an easy task. Logistics managers have the crucial role of ensuring things go smoothly no matter what. To establish a good career in logistics, you should follow some skills that you must work on and keep in mind at all times.
Generic skills
Whatever the background, the essential skills are:
An appetite for learning new skills is also sought after, alongside project management and team working skills.
Excellent written and verbal skills are required supported by the ability and to present thoughts clearly and convincingly.
There are certain personal qualities and core competencies necessary for success. These can be broadly grouped into technology-related, people-related and general management skills.
Technology skills
Information technology plays a key role in the management of the supply chain and is an equally important tool to those involved in transport management and transport planning. Technology-related skills are therefore essential to all managers.
People skills
People management is no less important to the success of an operation. Changes in union relations, new legislation, new patterns of working and the constant drive for higher productivity make enormous demands on managers. There is a strong emphasis on the importance of customer care across both sectors, and an ability to see the picture from both sides is a useful skill.
General management skills
The modern workplace is a demanding environment that requires people to think on their feet to meet the daily challenges that come their way. This requires stamina back by strong skills in the following areas:
Forward Thinking
As a logistics manager, you must develop the ability to make accurate predictions of the possible needs of your company, as well as outcomes of actions made anywhere in the entire supply chain. Such skill will allow you to act faster, see risks that may arise, and develop contingency plans for problems that may or may not arise. Always think and plan ahead. As the old saying goes, it’s better to be safe than sorry.
Extensive Industry Knowledge
Equipping yourself with information on the latest happenings and trends in supply chain is essential to be an effective logistic manager. Given that it is an ever-evolving industry, you as a logistics manager, must ensure that your company’s supply chain is running in the most efficient way. Take time to do research on other companies’ processes, and benchmark on their best supply chain practices.
Team player
Being a good logistics manager is acknowledging that the success of every aspect of the supply chain is a group effort. Forbes offers ways you can be a leader to your team effectively, but you can start by allocating tasks wisely, paying attention to the team’s efforts, and learning to commend good work among your teammates. When it comes to working with other teams or units in the supply chain, it pays to treat everyone with respect and professionalism.
Sound Decision-making
A logistics manager like you must be able to make sound decisions and do it FAST. Although there will always be unforeseen circumstances when in the supply chain industry, being as prepared as possible can help you make better decisions. If you think you are not the best decision-maker, don’t fret just yet! This skill, along with a few more in this list, can be learned and mastered as you go along in your career in logistics.
Accountability
Even just by the sound of it, a logistics manager seems like an imperative position in a company. But just like any other position, it has its fair share of consequences. When things did not go as planned, logistics managers must be ready to take responsibility for the blunder. A good logistics manager doesn’t play the blame game and must know when and how to own up one’s mistakes and even take a bullet for the teammates and the company.
Quick Follow-through
Once you’re done with mastering the art of being organized, one thing you also have to learn as a logistics manager is following up with each component of the supply chain and making ensuring an important delivery gets to where it ought to be. Get involved in the process from the start right until the very end. If a problem arises along the way, take note of this and find possible solutions you can use, just in case it happens again in the future. Experience can be a very good teacher in the logistics industry
The challenges faced by the transport industry in the UK
In the present scenario of global economics, logistics play a key role in facilitating trade and, by extension, ensuring the success of business operations. However, changing consumer demands, complex business models and growing client demands are just some of the top factors that pose a challenge in streamlining logistics management. So, how can logistics management personalize a conventionally standard service? Well, that is perhaps the top challenge that the industry has been facing in the last few years among others.
In their struggle to ensure optimum results, here are the top challenges faced by logistics managers today:
Cutting Transportation Costs: Growing fuel prices increased wages, and peaking inflation indexes all work in tandem to increase transportation costs daily. Cutting a few corners here and there does not always help in meeting the cost cutting goals for transportation. Adopting a strategic approach to eliminate or reduce bottlenecks can prove pivotal in revamping network designs and consequently cutting down on transportation costs.
To implement these strategies well, logistics managers need reliable information on existing and future orders. Using a visibility software can help in simplifying these challenges. For a small business, relying on a cost-effective third-party transportation agency that caters to air, ocean, rail and road transportation is sometimes the best bet for accessing quality services in a cost-effective manner. For one, it rules out the added expenditure of maintaining a fleet of delivery vehicles, paying salaries to the transportation staff as well as dishing out freight charges and other taxes. You just pay a lump-sum to an expert third-party and they take care of the rest.
Processing Enormous Amounts of Information: Logistics managers have to deal with a lot of figures and data on a daily basis, besides coordinating smooth discharge of operations. The scope of their work includes ensuring the safety of the fleet and staff, fleet loading, cross-checking route maps, sanctioning fuel bills and so on. When done manually, this can be a time-consuming and tedious task that can take your focus off from attention to details. Investing in an automated solution or application for data entries, fuel bills, loading and unloading ledgers can go a long way in streamlining operations by allowing logistics managers the luxury of time to look at the finer nuances of operations.
Offering Segmented, Customized Services: Thanks to globalization, logistics management is turning into a multi-layered job where managers are expected to keep tabs on multiple supply chains simultaneously. You don’t just need to deliver goods on time but also offer customized services to different suppliers and customers in terms of packages and pricing. The keyword for success in this scenario is flexibility. Logistics operators need to can offer personalized experiences to multiple segments of customers. Using a software system that can automate the process of projecting different services to different customers can not only save time and effort on the managerial level but also bring added accuracy to data compilation and compliance.
Manpower Management: Manpower is the trickiest of management responsibilities. You must maintain a humane approach toward the employees while keeping the best interest of your organization in mind. That can be a complicated equation in any managerial setup, but especially so in case of logistics management, as the drivers and staff are often placed in different geographic locations to maintain swift supply chain velocity. Decentralization of responsibilities, by appointing logistics managers in key locations, with appropriate work-order management solutions can help in more efficient management. For instance, the work order management module of comprehensive solutions like ReachOut, helps logistics managers manage team utilization, team schedules, show proof of work, generate quotes and invoices and do much more. Managers can easily keep everyone on the same page and notify the staffs immediately about changes or provide them with live info they need.
Compliance with Regulations: Transportation rules, regulations and security norms can vary from city to city, state to state, and quite obviously, from country to country. If you are a business catering to a global clientele, keeping up with these varying rules and regulations and familiarizing your staff with these, can pose a grave challenge.
Collaborating with an efficient audit software can help eliminate these pains and improve your compliance, audit results and lead to quality investigations, thereby saving you from the trouble of getting on the wrong side of the law.
With the landscape of business operation continually changing, there is a shift in the ensuing challenges as well. Staying abreast with these changes and taking preemptive measure to ward off challenges is sign of sound logistics management.
Sharp Fluctuations in fuel pricing
The sharp fluctuation in fuel pricing can be explained by the constant rise and fall in oil. The OPEC (Organization of the Petroleum Exporting Countries), led by Saudi Arabia, has often refused to curb production on the overall market which has resulted in an abundance of crude oil. This increase caused a disparity between the demand and supply of crude (which is later converted into other products such as fuel), with repercussions on fuel prices. The matter is still to be solved.
Driver shortages
Though the future looks bright for the truck industry, the shortage of drivers is a result of various factors. Demographically, a lack of availability has been noted. Low wages have also contributed to a decrease in some drivers. One more important factor is the working conditions which apparently are unsatisfactory, taking into account the dangers and weather conditions while driving in extreme regions.
Expansion in 3PL / 4PL providers
Charging higher prices for providing external services to a company’s logistic operations is a new addition to supply chain. 3PL and 4PL providers are third party and fourth party logistics company which manage part or the complete supply chain distribution. Obviously, if you need them, charges may be higher given that corporations have to cope with increased competition on the market, creating a need to provide better service. Or the service may be out of your demographic area.
Expanding use of technology tools
Many companies are still reluctant to adopt new technologies. Digital technology innovation is sure to transform the trends of supply chain and procurement in the future. However, a slow conversion to technology may give other companies which are digitally equipped, a competitive advantage
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