Recent research by Gartner (Gartner Inc., 2020) has shown that over 50% of organizations have not yet actively started to build a roadmap for supply chain digital transformation. Notwithstanding the fact that the supply chain landscape is becoming more and more challenging, and the need for increased visibility, agility, responsiveness, and both operational as well as cost efficiency, are widely seen as top priorities. Quite shockingly, the power of digitalization to transform supply chain execution is still undervalued in many cases.
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A modern and effectively running supply chain operation is set up around three basic interconnected elements: people, process, and technology. A Transportation Management System (TMS) provides two of these three elements (process and technology). It can support your people with tactical and transactional tasks, as well as empower them to generate ideas, implement changes, and change their way of working. Flexibility in design and setup is key for a successful implementation, in order to continuously adapt to changing business environments.
An advanced TMS puts collaboration at the heart of the business architecture. Where supply chains have evolved from simple chains to holistic networks, the need for efficient order management, end-to-end transparency and hassle free communication is bigger than ever before.
A TMS has 4 basic elements or capabilities:
- Logistics Procurement – Ability to source carriers & logistics service providers (LSP’s)
- Order planning – Ability to efficiently plan purchase & sales orders
- Financial control – Ability to control your financial flows.
- Logistics reporting – Ability to create custom reports on important KPI’s