In today's turbulent trading environment, strong global transportation management capabilities deliver exceptional benefits and value. From optimizing freight movements and controlling freight costs, to supply chain SKU transparency and optimal inventory management, the value proposition for global transportation management is substantial and significant. In 2014, a Supply Chain Council survey found that managing global supply chain complexity was among the top 5 major issues. Complexity in the global supply chain has increased dramatically since that time. A very recent survey of U.S. manufacturers found that 60% of the companies operating in China are considering moving operations to other Southeast Asia countries in the next few years. Massive shifts in supply chains are underway because of trade turmoil increasing the complexity in global supply chain management and related transportation management.
Global supply chains are highly complex...even the simple ones. With sourcing spread over multiple geographies requiring logistics moves that involve multiple entities and numerous handoffs between 3rd party providers, and customs and regulatory agencies at both ports of export and import; the ability to effectively manage the global supply chain is challenging under the best of circumstances.The reality is that most companies do a poor job of managing the global transportation process...if they manage it at all. Let me qualify that statement. Most companies do not have a systemic and measurable approach in place to manage their global transportation and/or their logistics providers whether they are carriers, freight forwarders, or 3PLs. Most companies do not actually manage or monitor their freight providers for quality of information or freight contract compliance. This means that the work is executed without significant scrutiny.
Gartner defines a TMS as "a software application that deals with the planning and execution of the physical movement of goods across the supply chain" (Critical Capabilities for Transportation Management Systems, 2018). Depending on its level of sophistication, a global TMS offers a systematic way of managing:
Managing the complexity of global transportation requires human capital, time, and/or money. All of these inputs are relatively limited and optimizing their output is important in controlling total product cost and profitability. Generally, organizations, regardless of size, tend to outsource many of the basic global TMS functions to 3rd parties. This is necessary because it is not possible for a company to maintain the physical assets necessary for a global TMS program.However, where companies should have control, but rarely do, is over the relationships they have with their 3rd party providers. This failure to impose structure and control over their 3rd party providers is too often a result of simply not having the human capital or time required. While this was a reasonable position in the past, it is no longer the case. Today, there are off-the-shelf global TMS solutions that allow a company to build internal expertise to manage its global transportation programs. With proper global TMS in place, an organization can control everything from the initiation of contracts with 3rd party providers to the monitoring of their performance.The 3 reason a global TMS solution delivers value are:
Today shippers have a reasonably broad choice among TMS providers. Automating global TMS is a huge win for any organization with any kind of international freight volume. However, automation itself does not imply ease of use. Global TMS is a function of both the science of transportation and the art of design. It is in the art of design that global TMS solutions are truly differentiated. It is the art of design that determines the ease of use and the ultimate simplification of global TMS.About 3rdwave:3rdwave simplifies global trade through automation. 3rdwave is a GTM platform that delivers total global supply chain visibility, minimizes manual data entry, streamlines business process, and provides contextual information enabling its users to make informed decisions to reduce global supply chain complexity and risk. It's a cloud-based platform that requires minimal IT resources for quick implementation. 3rdwave ensures that companies meet the highest levels of global TMS execution and Trade Compliance conformance.Ned BlinickChief Product Officereblinick@3rdwave.co(416) 510 8800 ext 234https://www.3rdwave.co
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