siliconindia | | December 201919CXO INSIGHTSTECHNOLOGY PUSHING COST SAVINGS IN LOGISTICSBy E.R. Williams, Co-Founder, Zipline Logisticsemand for technology inte-gration into transportation services is at an all-time high. When asked if IT ex-pertise and capabilities are a necessary offering from third-party logistics providers (3PLs), 93 percent of shippers say yes, ac-cording to the 2016 Third Party Lo-gistics Study from Council of Supply Chain Management Professionals (CSMCP). The industry is still in the early stages of seeing maximum benefits from its robust data sets and IT investments.One of the largest initial drivers of technology integration was the need to level the playing field around transportation costs. Over the last ten years, there has been a wide-spread increase in the availability of rating and market data. Long gone are the days of ignorant buyers, paying too much, or expecting to pay too little. Motor carriers now have access to data that educates them on market factors driving the supply and de-mand of over-the-road transportation.As costs continue to rise, technol-ogy is continually being put to use to compensate. Upfront investments in new systems can streamline every-thing from order and purchase entry, automated billing and forms recogni-tion, forecast and production tracking, to driver-centric electronic logging devices, and cell phone-based GPS tracking systems.The majority of 3PLs are now focused on building up their IT of-ferings to enhance and modernize customer transportation and ware-housing functions. Providing and managing this type of technology is now the standard for 3PLs, with a multitude of other tools also being provided as differentiating, free-of-charge, value-added services.Most commonly, these individu-al technology solutions are available within a comprehensive software called a Transportation Manage-ment System (TMS). Many 3PLs have their own proprietary TMS, others purchase or utilize a TMS solution from a technology pro-vider. This all-encompassing plat-form provides instantaneous access to imperative information such as aforementioned rate indexes, safe-ty monitoring details, and electronic payments. It also works seamless-ly with ERP and EDI systems for easy order entry and management of multiple parties.A TMS can also perform specific cost-saving functions:· A TMS can assist in deliv-ering, organizing, and summariz-ing an annual or bi-annual RFP of all one's transportation lanes. The ability to automate this function al-lows for the leverage of multiple potential providers to ensure opti-mal purchasing on each lane. Once the lanes have been awarded, this tool can then assist in monitoring the transportation providers' ser-vice levels, order acceptance rate, and a company's compliance to this routing guide.· A properly loaded TMS can also automate the selection of the most cost-effective transportation mode for shipments. It can identify the appropriate time to utilize rail, over the road, less than truckload, or oth-Williams is a Bachelors degree holder from Miami University and has been associated with the logistics sector for the last 12 years.DE.R. Williams
< Page 9 | Page 11 >