As global trade encircles the world in twisting, complicated ways, profit margins are decreasing everywhere. Supply chain expertise is becoming a crucial means of differentiation. There’s great pressure to create agile, responsive, and risk-proof supply chains while curbing costs and improving overall efficiency.
Any serious effort to reduce costs cannot ignore transportation. Second only to the direct cost of goods themselves, transportation is an organizations’ highest indirect cost. Despite this, there’s been limited effort to reduce it. The main reason is that in most organizations, transportation spend gets distributed across multiple silos.
Organizations have looked to transportation management systems (TMS) to optimize transportation and costs within these silos. But traditional TMS technology limits just how much cost organizations can remove, and does not address the larger goals of supply chain agility and responsiveness.