Read our latest thought leadership articles from our team of supply chain professionals.
Inbound transportation management presents an interesting dilemma for many supply chains. It is one of the last components of the management of an efficient supply chain. As suppliers and partners bring the critical freight to an organisation, the lack of visibility to that freight can cause variability and risk that can impact the rest of the supply chain. The unfortunate reality for many companies is that they don’t have that required visibility to reduce or manage those variations; inbound has become a blind spot. Any blind spot will impede an organisation from reaching their objectives.
In South Africa, the number of companies that utilise a Transportation Management System (TMS) to manage their transportation is low compared to our European and US counterparts. But this is rapidly changing with the arrival of Software-as-a-Service (SAAS) based TMS systems that are cost effective and quicker to implement. In this article, Transnova offers you a viewpoint from the US where Steve Banker, co-author of Logistics Viewpoints and a contributor to Forbes.com and the LeanLogistics blog, discusses the areas where TMS offers the greatest financial impact.
Over the past two decades the global trend towards the outsourcing of transportation management has grown significantly within the cargo owner community. This in turn has fuelled consolidation within the Logistics Service Provider (LSP) network, resulting in the emergence of the ‘Mega LSP’ whose organisation often dwarfs that of the client who they are servicing. South Africa has paralleled this global phenomenon.
Transportation sourcing is a significant challenge for many companies. Typically, the procurement process to identify potential new carriers and award business requires a major investment of resources. The transportation team must develop a request for proposal (RFP), follow up on carrier responses, evaluate multiple award scenarios, and implement new carriers into the mix. In many cases, companies do not have a dedicated resource to manage the freight procurement process, resulting in usage of key personnel from other areas to support the sourcing event.
Unilever was looking for a partner with strong experience in the implementation of TMS systems and control towers. Transnova was selected to help build its African Transport Control Tower.View Case Study
“We selected Transnova based on the quality of their platform and the significant experience of their management team who have a deep understanding of the local logistics environment. I can honestly say that this has been one of the smoothest IT implementations I have been involved in, at both Mars and previous companies.”
— Dave Hallett, Supply Director at Mars AfricaView Case Study
FNB was seeking a TMS solution that would provide visibility and control over billing and optimise routing & scheduling to reduce transport costs.View Case Study
Cash Logix wanted to minimise industry cost by balancing the cost matrix which includes inventory holding costs, processing costs, transportation and source supply costs. Cash Logix also wanted to improve visibility across the cash wholesale network.View Case Study
“In South Africa, Transnova has helped us review a number of projects within our broader logistics and supply chain operations. The Transnova leadership team has a strong reputation in the supply chain and logistics industry in Southern Africa and are recognised for their extensive knowledge and experience in the TMS space. Transnova delivered particular value through their local expertise and experience by providing guidance around the benchmarking of our transporter rates.”
— Jeanne Hugo, Director: Supply Chain Africa at CHEP
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