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A key component of Integrated Transportation Management is knowing exactly how much companies spend on transportation, by mode and category, and understanding exactly where the hidden costs are lurking in their supply chain. By Allard Peeters, MP Objects

Setting the stage for Integrated Transportation Management
According to a background study by Accenture it is all about Integrated Transportation Management these days. With the economy picking up again across the globe, shipping volumes are increasing across all modes of transport.

This situation presents both a challenge as well as a unique opportunity for Supply Chain Professionals.

Especially when it comes down to managing outsourced logistics services.

Savvy managers now have a window of opportunity to forge new and innovative transportation service arrangements.

This keeps them in the lead for maintaining strategic advantage over their rivals.

To manoeuvre effectively within this unique set of conditions, supply chain professionals must effectively orchestrate two seemingly contradictory forces:

  • Operational excellence
  • Customer Service level (intimacy).

And they must move quickly-because market conditions will continue to change, constantly challenging them to stay ahead of competition.

Supply Chain Professionals must therefore start by assessing the true amount of control they have over the costs in their transportation network. By doing so, they need to take into account their desired balance between operational excellence and customer intimacy on a continuous basis. This is called Integrated Transportation Management.

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