Demand-Supply maintains transparency and showcases visibility via the Transportation Management System The demand-supply chain is extremely important for the transport departments and technology plays a major role in keeping the transparency intact for the flow to be easier. This is where the transportation management solutions come into the picture. The importance of the ‘Supply’ chain visibility The definition of the transport industry has changed globally and due to that, there are some problems faced by the supply chain professionals. Statistics say that 73% people from the transportation industry are troubled about the planning of poor timetable. Not only this, 33% are concerned about the performance of transportation partners as per the service level agreements.
Image Source: - cerasis.com Moreover, 74% were worried about cost-cutting and checking it at various levels that can impact revenue generation as well as profits. The supply chain visibility for the transport companies is mainly to manage and monitor the performance of the complete demand-supply process. Transparency is the heart of the transport departments that will keep the supply chain rolling, without any hassles.
Transportation Management System is the key Based on a survey conducted, 54% respondents wished to have extra IT services that would cater towards better demand-supply visibility. Another survey says that only 35% of shippers use the transport management system and surprisingly 39% of transport & logistics companies wish to update their ongoing system.
Benefits of an integrated transport management system The demand-supply chain becomes more spontaneous and active with the use of the transportation management solutions. The logistics department disagrees with this and seems to think that the transport department depends on Excel sheets, numerous phone calls and emails. Regardless of all this, the transport management system consists of a lot of data; which can be used as an analysis tool due to which the supply chain is visible, resulting in the improvement and predictions of future demand levels, before schedule. One of the solution is also where it offers a solid ROI. The best form of cost-cutting is due to spending less on freight via lower cost modes, effective direction-finding and better negotiation deals. Surveys also prove that there is a 6% of freight savings due to the transport management solutions and 60% users of the same, show less than 25% of net savings used up for the investment of the TMS. With the betterment of the supply chain facility, there are more and added benefits that include enhanced customer service as well as capture the most-needed data points, partake in analytics and make alterations as per the understanding of the shippers.