5 Key Transportation Functions to Optimize Your Supply Chain Strategy
Manufacturers who still haven’t adopted the Internet of Things by now, the transportation and supply chain process will only become harder from now on.
The five functions listed below depend on the automation and optimization of order processing, warehousing, load building, freight cost invoicing, shipment tracking and so on.
Logility, a leading provider of supply chain management software, has come up with a whitepaper listing the Five Essential Elements that Transform Transportation Management. Here are the five elements listed below:
- Optimized multi-modal shipment planning and carrier selection
- Real-time transportation visibility in shipment management
- Financial risk mitigation in freight accounting
- Rules-based automation and management by exception
- Trading partner communication and stakeholder collaboration
The Transportation Management Process
Broken down into three phases, Logility has created a visual that explains the benefits of automating and optimizing the transportation management process. The benefits include a optimized orders into organized shipments and a better flow of dollars in the shipment process.
Transportation management activities can be organized into a three phase cycle.
- Shipment Planning organizes orders into shipments and determines the best carrier.
- Shipment Management executes the shipping plan through delivery, managing and monitoring the shipping process and flow of goods.
- Freight Accounting handles settlement for inbound, outbound, and intercompany shipments, managing the flow of dollars.
For a complete explanation of all five essential elements and how to benefit from a better transportation management system, download the whitepaper here.
The MEP Supply Chain Optimization program is also a great resource in managing your transportation processes and optimizing your supply chain. Learn more on how we can help your manufacturing company get stronger.