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Transportation represents the largest component of an organizations supply chain cost structure after conversion and acquisition expenses for goods and materials. By effectively managing and controlling these expenditures, an organization can improve service levels and promote predictable supply chain performance.
Enterprises need to address the following challenges:
- How the service requirements vary across channels?
- What modes should be utilized to meet service level and pricing requirements?
- What role and/or influence should the transportation function play in the planning process?
- How integrated are transportation processes and systems with other core business functions and systems?
- How the transportation networks meet the dynamic changes in the marketplace?
Transportation management addresses the planning and execution of physical movements of products across the supply chain.
An effective transportation management program can promote:
Integrated transportation planning processes to reduce inventory, working capital, and transit times and improve asset velocity
Proactive planning and predictable execution of a transportation network
Effective management of trading partner relationships
Dynamic carrier and mode selection processes
Improved data quality to monitor and assess vendor, carrier and internal performance
A flexible and responsive transportation network to meet changing market conditions
Compliance with evolving regulations
ABMS’s Transportation solution focuses on leveraging transportation expenditures to meet service level requirements and enhance the supply chain performance.
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