Extracting Competitive Advantage from Logistics

With growing competition in the global business scenario, organizations have realized the importance of having lean, agile and robust systems and processes in place to stay relevant. A recent survey on logistics concluded that out of the total costs of the product about 8 % to 25% (variance across industries) costs are controllable logistics costs. This survey implied that even if the companies can manage to bring down such costs by a few percentage points, this saving can be a source of a significant competitive advantage.  Organizations are now accelerating to adopt the latest Transport Management System to minimize the turnaround time to the maximum possible extent.

A transportation management system is a high end specialized software meant to support functions like raw material sourcing, warehousing, inventory, logistics, distribution, etc. It helps the overall supply chain of the organization in routing and scheduling of shipments both inbound and outbound. The software offers seamless integration and timely information availability across the supply chain. The multiple benefits of this system have been equally realized by logistic companies, manufacturing organizations and everyone else who moves consignments. The distribution or the logistics departments are instrumental in ensuring maximum ROI and contributing comprehensively in the organizational financial goals.  Movement of goods with expertise, safety and economically is every organization's aims.

In the global scenario where it’s common for businesses to go beyond national boundaries for both raw materials/ components sourcing as well as selling the finished products, the transportation management system manages intermodal, domestic as well as the international movement of goods. Irrespective of the size, quantity of goods, and transportation mode (company owned or third party logistic supplier) the software makes your processes and systems work in a reliable manner.

Organizations experience an improvement in customer service as reporting and analytics is incredibly beneficial in decision making.  The same applies to warehousing and sourcing functions as well.  It is an immense aid for supply chain managers in the decision-making process. Analysis of the past decisions, assessment of the present business scenario ad forecasting about the future business uncertainties is possible due to data warehousing inbuilt in the transportation management system.

The good software provides valuable insights for the senior management of the organization apart from the cost saving aspect. Cloud storage and accessibility are now part of such software enabling easy access and functionality. With proper training provided by the system vendors and provisions for upscaling keeping in mind the future requirements, it has become a necessity for supply chain managers.