Transportation News

Your Transportation Management System Can Help Manage the Amazon Effect

Bridging the gap between the order management and warehouse management systems can maximize routes, deliveries, and customers’ experience.

Lots of supply chains are dealing with the “Amazon effect,” which has led consumers to demand lightning-fast (and free) delivery times, last-minute order changes, and 100 percent order accuracy.

While initially seen as just a retail problem, these expectations have been extended to the B2B world as well.

Managing the Amazon effect requires a host of solutions, but a transportation management system (TMS) is often overlooked.

A TMS is critical for the execution of an order, and this is especially true as order cycles shorten and shipment sizes shrink.

Any transportation manager would agree that if these customer behaviors aren’t properly managed, they’re going to drive up costs.

If you’re concerned about the demands and expectations around your orders and deliveries, part of the answer may literally be at your fingertips.

But please note that not all TMS systems will be able to handle the scenarios and options I describe below. Only a Tier 1, multi-modal TMS that was designed in the last several years will have the architecture and flexibility to respond in such a dynamic environment.

Real-time planning

A TMS can bridge the gap between the order management system (OMS) and warehouse management system (WMS). By optimizing within the constraints of customer service, it can help consolidate customer orders and find the best mode and carriers to keep costs as low as possible while giving route planners the opportunity to dynamically optimize right up until the freight leaves the warehouse.

This includes choosing the best cost/service option for all transportation modes, from parcel to LTL, along with multi-stop TL, pool distribution, FTL and intermodal - while using real rates and services times for all modes. Allowing planners to hold onto freight as long as possible, but still keep releasing freight for shipping as needed, is especially important if trying to consolidate same-consignee freight as well as building multi-stop TLs.

A TMS can also shift from being a planning engine to an execution and visibility tool that monitors freight in transit: it knows which orders are on which shipments, along with service times for all modes. It can use logic and workflow to proactively monitor freight and automatically get status and location information from carriers – as well as alert and respond automatically. In fact, I know of some shippers that ping their TMS to get the best mode selection and ship date requirements pre-WMS.

Leveraging pool distribution

More and more shippers are seeing order sizes shrink, which makes routing all the more critical. In advanced scenarios, a TMS allows planners to optimize multi-stop TL freight and build pool distribution (this where a tight integration with both the OMS and WMS is important).

Pool distribution is a long-standing mode of transit that is seeing growth again. Like zone skipping for LTL freight, pool distribution provides a faster and cheaper method of delivery with more visibility and control. It’s faster than straight LTL, as you use TL to get the freight to the local terminal and avoid LTL carrier terminal transfers.

With the right TMS, you can handle multi-leg moves and the associated cost/invoice allocation, which allows you to choose the best pool point and determine which shipments should be picked up or delivered. Routes are kept simple so you can break apart very complex orders and route them each separately. This is what gives you the all-important tactical savings; it lets you get creative about how you distribute freight and show your customers their savings.

Optimizing your distribution network

Thanks to e-commerce, many companies are finding that they need to be more than just a fulfilment company. That could mean light assembly, restocking or some other type of specialty tracking service that’s required for better customer fulfillment as you create your own differentiators. For niche distributors that operate regionally, a TMS is invaluable. It can find the best partner distributors to act as the delivery agents, along with helping to acquire the freight and pay distributors.

When it comes to the Amazon effect of faster shipment demands, smaller orders, or other customer expectations, don’t ignore your TMS. A modern TMS with the right design can operate dynamically and in real-time to help you maximize routes, deliveries, and your customers’ experience.

Related White Papers

Download the Paper

Refining TMS Integration Outside the Four Walls of the Warehouse
How shippers can use a modern transportation management system (TMS) to successfully integrate across the supply chain ecosystem and create a truly digital network. Download Now!


Download the Paper

The Importance of TMS within Ecommerce
Ecommerce is not just a B2C phenomenon anymore: the B2B organizations are starting to demand the same type of visibility and logistics services that individuals receive in their personal lives. Download Now!


Download the Paper

3Gtms Transportation Planning and Execution
Experienced TMS Company has Guided Many Leading 3PLs, Brokers, and Shippers with transportation planning and execution. Download Now!


Download the Paper

Pool Distribution: The Forgotten Mode?
Shippers are giving pool distribution a second look thanks to today’s third generation TMS, which is more powerful, flexible, and sophisticated than prior generation products. Download Now!


Article Topics
Best Practices   Transportation   Transportation Management   Amazon   Ecommerce   Less-than-Truckload   Order Fulfillment System   Parcel   TMS   Warehouse Management Systems   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Transportation News
Landstar System Joins Blockchain in Transport Alliance
Landstar System, Inc., a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services, today announced it has joined the Blockchain…

XPO Logistics Expects 750,000 European “Last Mile” Home Deliveries in 2018
XPO Logistics has used rapid-fire acquisitions to grow from a $175 million truck brokerage company in 2012 to a $15.38 billion freight and logistics behemoth, but its European expansion, for now, is being…

Speed and Service is Driving Ecommerce Growth to Asia Pacific
Omni-channel disruptor SEKO Logistics says retailers and etailers that react fastest to the shift in consumer behavior and meet customers’ expectations for speed of delivery and returns earn the highest…

Attaining Supply Chain Visibility Doesn’t Have To Be an Overwhelming Task
Supply chain visibility will be a weighty topic in 2018, as the industry acclimatizes itself to new levels of supply chain control, however, the question is no longer whether visibility is essential for…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles