What IS A Transportation Management System?
A Transportation Management System (TMS) is positioned to coordinate and manage the resources, costs, and schedules of a transportation company’s operations. This collection of enterprise-wide operations is called a Transportation System. But in most cases, the cohesive, coordinated, and integrated approach of a Transportation Management System and the features/operational areas of a 3PL are missing from small to midsized shipping companies’ shipping fleet.
The solution to this problem for small to midsized companies is integrating a Transportation Management System and Shipping Packages into one solution. Today’s event-driven, real-time 3PL providers can achieve shipping optimization while paying little to nothing for freight optimization.
Some 3PL providers use freight logistics software as the channel of choice for composing a shipping plan. But one cost consideration for small to midsized companies is that logistics software only manages initiatives, not the management of actual shipping. Therefore, basic improvement recommendations for midsize companies should include the following initiatives for facilitating shipping optimization:
• Remove 3PL business interest from TMS implementation
The most prominent finding of shipping optimization research is that midsize companies can realize the most significant shipping performance improvements by removing 3PL business interest from the planning process.
• Cause unnecessary LOS entries
It is common for 3PL clients to enter Service Level Agreements (SLAs) that cause unnecessary mandatory expenditures. For example, a standard 3PL service policy states that, among other things, shipping purchases and option CFL Kits ( Used for cross-docking and de-boarding spoils.
• Farm-to-Market approach
Companies use this form of innovation to market their new products. However, many 3PL providers don’t operate as a standard 3PL provider and farm-to-market marketers. Brandeisling Research culled company data and developed The Complete Container Load Indice, a load-sustaining technology that streamlines the entire load-optimization process.
• Content-specific Innovations
Some 3PL providers aren’t content to Bang It in the Box and Luck AdAkering solutions. Centered around specific innovation or process improvement, they attempt to combine specific innovation and process improvement. Perhaps this best-in-class innovation is found at Convergence Partners, a stomping-disk adapters manufacturer. The Adlowering Innovative Framework enables organizations to identify and separate technology improvement efforts from the business process.
Hence, as the shipping industry ages, innovation is inevitable. Companies must be positioned to claim the innovation edge. Most 3PL providers are content to modify existing products and provide little or no innovation. They look to expand into new markets- but seldom develop new products from market-share creation. Combining innovation with business process improvement-which is at the root of the significant investment in new technology by logistics-software companies such as esca logo-ems.
• Unreceptive to invest in custom solutions
Custom-coded innovation costs more than integrating a standard 3PL solution, which allows shippers to control innovation costs. Innovation costs more than integrating a standard 3PL solution-which allows shippers to control the cost of innovation. 3PL providers dislike being burdened with the cost of innovation.
The Freight Optimization category includes innovation in transportation management software, which 3PL providers believe creates value. The labor-management solutions in this category are also limiting because they’re already performing highly inefficiently.
Distinctions labor management solutions haven’t been able to compete effectively in innovation with leading 3PL providers. Instead of focusing on developing the best or trying to fit a particular solution to a particular need, 3PL’s have focused on becoming comprehensive. 3PL’s believe this is the best way to provide value.
Technologies have become highly specialized and much more customizable than the solutions 3PL’s used in the past. Yet, the value alignment across vertical solutions in this IT sector has remained frustratingly static. Why? Because regardless of innovation or technology, 3PL’s have failed to provide shippers with a total solution that offers a real competitive advantage.
As the access to capital becomes scarcer, it becomes increasingly important for asset management companies to utilize the vast network of assets and facilities for their marketing and brand awareness. Asset management outsourcing or logistics software guarantees that you will have the leading edge in asset management WeaaS solutions for such a vast global operation as airlines, hospitals, and retail.
However, logistics cannot rightly be defined without reference to the underlying drivers which drive the logistics business. These drivers are People, Places, and Processes.
The process is developing a WeaaS solution in a prescribed manner, thereby offering impressive efficiency in product handling, order tracking, checking inventories, purchasing, routing, shipping, and payment processing.