Transportation is the lifeblood of global supply chains. Whether it is raw materials, CKD (Completely Knocked Down), SKD (Semi Knocked Down), or FBU (Fully Built-Up), the movement of goods are handled through various modes from origin to destination.
Supply Chain Management (SCM) in general, and transportation in particular, can be very complex. This involves the integration of information at various stages of the supply chain process and entails several modes of transport like road, rail, air and sea.
The role of technology has grown exponentially in the last decade.
It has transitioned from a period when technology infrastructure was being developed to a period where the likes of Software-as-a-Service or cloud-based solutions have become a norm.
All the players in the Supply Chain like carriers, OTIs (Ocean Transportation Intermediaries), ports, terminals, railways, warehouses, and truckers are looking for or demanding integrated solutions that can connect all the elements of their operations.
Systems like WMS (Warehouse Management Systems), TMS (Transport Management Systems) and FMS (Freight Management Systems) are some of the systems that can help logistics service providers and supply chain companies to achieve higher efficiencies in their operations.
An integrated system can create and strengthen linkages in the value chain to improve the bottom line for the business and is seen as an enabler for the effective control of the complex processes involved in the logistics and supply chain network.
These integrated systems help customers handle all the processes of the supply chain through an online platform. Processes such as freight quotations, bookings, documentation like a bill of lading, tracking and tracing of containers, invoices, and freight audits can all be done online.
They can also help customers reduce time and costs by way of reducing cargo and documentation lead times, stock inventory, and associated costs.
According to Transparency Market Research, the global market for transportation management systems stood at US$ 9,600.8 mn in 2016 and at a predicted CAGR of 13.6%, it is set to become a US$ 30,044.1 mn marked by the end of 2025.
A Gartner Supply Chain Technology Survey found that by 2023, at least 50% of large global companies will be using Artificial intelligence (AI), advanced analytics and IoT (Internet of Things) in supply chain operations, all of which are transformational technologies, which will identify new ways of doing business and enabling new processes that will result in significant cost savings.
To assess the real-world benefits of such technologies, we reached out to Brad Klaus, the CEO of Haven, an integrated Transportation Management System (TMS) provider.
As per Brad, automating the workflow in the supply chain saves time and resources for BCOs through the usage of system tools for selection of best rate, contract management, and freight auditing. This also helps in reducing employee’s time on unproductive tasks, allowing them to focus on adding value to the customer experience.
This helped them modernise their logistics operation through automated processes, coordinated workflows, and improved visibility.
However, it is also true that a lot of BCOs and international logistics companies are still running their businesses on manual, archaic, and other disparate systems.
To understand better how these businesses operate, we set up a short survey. A few quick questions to identify current logistics trends, challenges, and best practices — could you help?
In return for your efforts, we will send you customised solutions and a full analysis of the answers, comments and best-practices from other like-minded individuals/companies (no personal info will be used).
These ten minutes may save you tens of thousands of dollars.
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