siliconindia | | December 201919NEED FOR FREIGHT MANAGEMENT SYSTEMSBy Jitender Lalit, Head - Logistics Procurement, RaymondJitender has over 15 years of experience in the logistic industry, especially in the fields of Supply Chain Operations, Logistics & Category Management, Warehousing & Distribution, Route Planning & Optimization and many others.reight management refers to the technology, experience, human resources, and knowledge utilized to facilitate effective, efficient and expeditious coordination between carriers & shippers and ensure goods are delivered on budget, and on time. Supply chain stakeholders have a com-mon pressing need to automate the distribution processes, and thereby reduce direct as well as indirect costs, improve operational efficiency, reduce the nuances in tracking and confirming consignments, increase the percentage in adher-ence of SLAs, reducing the loss in sale for non-availability of material.Freight management system works closely on princi-ples of Supply Chain 4.0 and has tremendous potential in automating the distribution in Supply Chain. It breaks the traditional ways in which distribution is currently done. Use of freight management system will bring-in visibility in dis-tribution process, mitigate risks, and reallocate the existing manual freight bills checking resources to various other core tasks. This set of innovative digital technology that it offers could help companies reduce lost sales by 50-65 per-cent and cut distribution costs by 15-30 percent. Improved planning would make inventory reductions of 35-75 percent possible and supply chain administrative costs could be 80-120 percent lower. The levers, which need to be identifying for realizing this potential are clear, but to what extent can they already be put into use today?Collaborative PlatformTo deliver a unified application and to manage all type of distributions - Primary, Secondary or Last mile, bringing all stakeholders - internal or external - including legacy application users on a unified platform for creating a Lo-gistics Command and Control Centre, i.e., LC3. LC3 is Lo-gistics Control and Command Centre that gives final punch, which can help unleash the power to control and optimise the supply chain. LC3 gives the control to Logistic Service Users (LSUs) in identifying and instructing the vehicle type that must be used, the route that Logistic Service Providers (LSPs) must follow, SLA's that LSP is not adhering, truck fill rate that must be achieved before starting the trip.LC3 Capabilities:1. End-to-End Visibility: Visibility across supply chain partners, including suppliers, contract manufacturers, transportation carriers, third-party logistics, distributors and dealers.2. Real-Time Tracking: Through collaborative informa-tion sharing the information can be shared and collaborated in real-time.3. Early warning Alerts & Exception Management: Resolves supply chain disruptions before they disrupt the business.4. Predictive & Prescriptive Decision-Support: Using predictive & prescriptive analytics in deciding FTL or ex-press will be economical, wherein cost savings are guar-anteed. In comparing and finalising the most economical or fastest LSP. In deciding a smart route after considering all practical constraints across all supply chain partners. In optimising the vehicle space by maximising the truck fill rate - maximising volume/weight per vehicle, deliver more in same cost. Prescribing the right mix of items that needs to be picked for maximising the Truck Fill Rate.5. Autonomous Decision-Making & Control: Take the ro-bot out of the human and boost productivity.6. Cognitive: The self-correcting supply chain with deci-sion-making and Machine Learning.Advantages of LC3:1. Order Fulfilment: Easy to configure, flexible, secure and reliable order data integration - reducing cost to serve. LC3 helps consolidate orders across various divisions reaching same destination earlier executed on parcel mode can now be shipped FTL giving cost advantage to the tune up to 50 CXO INSIGHTSF
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