Analyst Insight: Technology is revolutionizing the transportation and logistics landscape, but adoption rates by shippers still lag. In fact, many still rely on spreadsheets and manual processes to manage their transportation operations. Not only is this inefficient; it limits the ability to harness data and turn it into actionable insights to help reduce transportation costs, improve carrier utilization, and create a more efficient and sustainable supply chain.
Early adopters have yielded significant benefits from leveraging a transportation management system (TMS). According to a Gartner survey, TMS users typically see yearly savings of 5% to 15%. However, despite the benefits, only 35% of businesses are using a TMS, leaving behind many who haven't invested in the full digitization of their supply chain.
Those who rely on manual processes — either partially or entirely — are missing out on the opportunity to utilize the large volumes of operational data available to them to improve efficiency and realize cost savings. With today’s TMS, shippers can view their entire network in real time, enabling them to quickly identify and address any potential problems while gathering critical data on shipments, carriers, routes and more. All that data can then be put to work to support better operational planning and ongoing efficiency.
Making Data Actionable
The use of data and analytics has exploded within the logistics industry in recent years, but that information only becomes valuable when technology makes it actionable. Here are a few ways shippers can use data to improve their transportation operations.
While a TMS can provide access to operational and market data, effectively utilizing that information to optimize supply chain operations goes beyond simply implementing the right technology. A truly strategic, trusted partner will take all that available information and help turn it into tangible ongoing improvements for your business. The right TMS partner wants to be measured against this, and wants a scoreboard to show delivered value.
Outlook: Global supply chains will contend with more complexity and volatility in years to come, which is making the utilization of data to make smart, strategic decisions more important than ever. By using a TMS that provides real-time data and actionable insights, you can improve your efficiency, customer service, profitability and sustainability. And cost shouldn’t be a barrier when it comes to implementing a TMS — you can get started at a low barrier to entry that will yield significant results.
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