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Submitted by scm on Sat, 2006-11-18 09:08.
Transportation management has become sophisticated because of new trends like emergence of logistic service providers, broadening business geography, wider adoption of air, ocean and intermodal transport, complex Supply Chain comprising of numerous trading partners and ever increasing customs and security regulations. Transportation management systems have brought more efficiency, control and visibility over various transportation management tasks. Traditionally TMS helped transportation staff with tasks like carrier selection, transportation procurement, vehicle routing and scheduling. Modern TMS have advanced functions like contract management and compliance, automatic load plan generation from demand plan, optimized transportation mode selection, combinatorial bid optimization, unified management of private and hired fleet, appointment scheduling, freight audit and payment, mobile asset management, driver and fuel management system, carrier performance management, reporting and analysis of transportation spend. Some can even generate delivery plan and schedule from the purchase order. They are also well integrated with external systems like order management systems, yard management system, Global Trade management system, ERP, Warehouse Management System and also customer support system. Usefulness of TMS has expanded far beyond the transportation staff and reached other internal teams like purchasing, suppliers, 3PL and even customers. Traditionally barriers such as huge cost, lack of interfaces for system integration, long implementation times associated with TMS roll out have all hindered TMS adoption. Today TMS adoption and integration is much easier because of on demand TMS services and technologies such as SOA. Implementing transportation management systems will bring total visibility to the supply chain, deliver more information and power to decision makers, reduce inventory and administrative cost and deliver better customer experience through well managed supply chain.
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