Implementing a collaborative transportation management system (TMS) offers several benefits by improving coordination and visibility across the supply chain. The most likely benefit includes:
Less Variability in Transportation Costs: A collaborative TMS provides enhanced data sharing and real-time information, allowing for better planning and execution. This results in more predictable transportation costs through optimized routing, load consolidation, and efficient carrier selection.
Enhanced Coordination: Improved communication between all parties involved in the transportation process reduces inefficiencies and helps in achieving economies of scale.
Cost Savings: By minimizing empty miles and improving route planning, a TMS can significantly reduce fuel consumption and overall transportation expenses.
Improved Service Levels: Better visibility and coordination lead to timely deliveries, enhancing customer satisfaction.
Analytics and Reporting: Advanced analytics capabilities help in monitoring performance, identifying cost-saving opportunities, and making informed decisions.
While benefits such as lower distribution center operating costs, fewer transportation planners, and less variability in picking and packing time might occur indirectly, the most direct and significant benefit is the reduction in transportation cost variability.
References:
Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2017). Supply Chain Management: A Logistics Perspective. Cengage Learning.
Frazelle, E. (2002). Supply Chain Strategy: The Logistics of Supply Chain Management. McGraw-Hill.
