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Emerge has an interesting new platform to deal with the problems shippers are having procuring truck capacity. The vocabulary used in transportation can be confusing. Shippers” are companies that have goods that need to be transported. Scale is Necessary for Freight Benchmarking. But shippers lack trucks.
Additional opportunities can be reached through transportation optimization whether using a 3PL or 4PL. It's important to understand how transportation optimization can work well with managed transportation service providers to attain that goal. Defining Transportation Optimization.
Vetting 3PLs and transportation management services providers is a complex topic and shippers may not know where to begin. To find the right logistics transportation services partner for your unique business needs, shippers should consider these five crucial characteristics. . Focus on Carrier Procurement and Management.
Procuringtransportation for freight is much different than any other procurement category. Transportationprocurement needs to support both customer service and a company’s internal supply chain goals. One master of freight procurement is Kyle Masters. Procurement ran a request for proposal event.
The three traditional methods are the use of a transportation management system (TMS), transportation execution system (TES), and managed transportation services (MTS). A TES is generally mode specific and lack optimization capabilities, but for shippers with simpler transportation requirements, that is often all they need.
We have all our factories, both in-house and outsourced, all of our distribution centers, and our transportation network on the Blue Yonder foundational system. We can run a plan simulation to maximize revenue, maximize shipments, maximize the customer experience, or minimize transportation costs.
Sarah is a Shipper Sales Manager at DAT , an online marketplace that connects shippers and carriers in the transportation industry. She brings almost 20 years of supply chain and benchmarking experience to DAT, where she is focused on providing actionable insights to shippers through DAT’s Benchmark Analytics and Rateview benchmarking tools.
and is transforming the $800 billion transportation and logistics industry with its digital freight marketplace platform. Mark McEntire is the Senior Vice President of Operations at Emerge , a freight technology firm that is reinventing freight procurement. Hunt Transport, Inc. About Mark McEntire . and Penske Logistics.
These rates will have natural implications for smaller shippers seeking to lower overall transportation and freight spend, and paired with a “blurred lines between peak shipping and shopping seasons,” shippers will experience increasing trouble when trying to procure full truckload capacity. Conducting annual procurement exercises.
The Approach to Effective Freight Procurement by LSCMS Shippers’ Council Container shipping procurement faces a multitude of challenges shaped by global events, industry shifts, environmental mandates, and technological advancements. At the heart of it all, an effective procurement strategy remains paramount.
FourKites CEO, Matt Elenjickal One of the two leaders in the real-time transportation visibility market is FourKites. This allows the company to do some interesting benchmarking. Calling the FourKites platform a real-time transportation visibility solution is a misnomer; This is a real-time supply chain visibility solution.
According to the latest American Shipper benchmark survey, transportation spending increased in 2012 – according to 75 percent of respondents – remaining unscathed by budget cuts. Shockingly, though, companies are failing to invest in the necessary procurement tools to manage spend and optimize their transportation networks.
Whether your company is a big or small player in terms of shipping volumes, and regardless of your chosen transportation modes (road, rail, ocean, air), the health of your bottom line depends in no small part on the competitiveness of your freight prices. The answer is to benchmark your freight, of course. What is Freight Benchmarking?
In today’s highly competitive marketplace, understanding how your company’s procurement strategy and results compare with industry peers is critical. Consider how these issues will impact your carrier rates and learn why now is the ideal time to benchmark and bid your rates with the help of a third-party logistics (3PL) provider.
However, following these 10 practices can help you learn how to reduce spend in the procurement supply chain. Use External Benchmarking Tools. Many suppliers and manufacturers may have existing, internal analytics tools, but using these tools for benchmarking processes may be ill-fated.
Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. Fourth Step: Benchmark KPIs to understand limitations and discover opportunities. For businesses of all sizes, the digital transformation of supply chain planning became the most important initiative. .
When we started benchmarking companies, Deborah and I had a friendly wager. I believed that we would find a company with the lowest distribution costs (warehousing and transportation), and the lowest manufacturing costs, and this would result in the best overall cost structure. She asked me, ‘What was the impact on total costs?’
This assessment goes beyond typical industry analyses by examining transportation technology applications and partnerships, as well as benchmarking existing 3PL performance. It provides tailored insights on procurement, transportation, global trade, and warehousing, offering solutions that integrate data, analytics, and automation.
This technology allows businesses to unify their procurement, expense management, invoicing, payments, contract management, and spend analysis processes and reporting. The visibility to spend allows them to provide excellent benchmarking in several areas. I saw this claim as being more a statement of intention than of fact.
According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. That’s why organizations zero in on strategies to achieve procurement cost reduction. The key thing to remember is that cost reduction in procurement isn’t just about slashing expenses.
How do we create systems that allow everyone in the ecosystem, from suppliers to transportation partners to retailers, to be not only more agile and responsive in the face of rapidly changing market conditions, but to be able to predict issues in advance and prevent them? So, what is it going to take to enable better inventory management?
As a third-party logistics company focused on over the road transportation management, and having an LTL rating engine and web-based TMS for nearly 20 years (web-based even before Google!), at Cerasis, we know a thing or two about the nuances of LTL procurement. LTL procurement is something we do very well.
This time of year, many shippers are reviewing and updating their transportation plan for the back half of the year and many will be considering issuing RFPs for new or changed capacity needs. So, first and foremost, communicate the potential impact of changing transportation plans to your leadership team.
One challenge to this approach, however, is that many shippers focus exclusively on price when making their transportation decisions. Customers with a strict ‘procurement mindset’ overlook important factors like consistency, overall experience or past performance. We don’t shop rates. We look for value and long-term partnerships.
You’ve developed a well thought out transportation plan that supports your supply chain. You’ve conducted a transportationprocurement event and have agreements in place with carrier partners to provide the type of capacity you need, where and when you need it. Need a pit crew for your transportation management race?
Managed transportation service providers work to deliver transportation solutions to maximize service at the lowest cost through people, process, and technology. The process involves investigating the current transportation activities and engaging in new opportunities for cost-savings while optimizing service levels. Mode Shift.
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
From artificial intelligence to refocusing on procurement, the state of supply chain continued to explode throughout 2016, and you need to understand why. Gathering this information via new systems also enables quality benchmarking across the supply chain. Unfortunately, there continue to be major costs associated with procurement.
By Linsa Godwin Sathiamoses | Consultant, Transportation, Chainalytics | Procuringtransportation services is an important activity on the supply chain calendar. It is also one area where every procurement manager thinks he or she is doing a good job, until proven otherwise.
This morning, unexpectedly, I found myself in the middle of a debate between my two panelists on the Planning Benchmarking Panel for the Summit. Recently through my analysis of the planning benchmarking work, I have become fascinated on the role of inventory in the market-driven value network. This is a series of preparation calls.
In the first episode of this educational series focused on the link between transportation management and supply chain excellence, Chris Timmer of LeanLogistics (a Talking Logistics sponsor) outlined the attributes of a strong transportation management foundation and how to build it. What’s the first step in that process?
What is procurement? In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis. Procurement in 2021 and beyond.
This month, we continue our Procurement Basics series and would like to introduce our readers to yet another set of often misused business terminology. As both sourcing and procurement are related to obtaining supplies for the organization, confusing these two terms is easy. Procurement. What Is Procurement Process?
Depending on your industry sector, transportation and logistics costs (as a percentage of sales) may range up to 14% or even higher for companies with an inefficient or outdated logistics set-up. Decentralized procurement of various logistics services limit leverage opportunity, cost reduction and efficiency enrichments.
As an E2open forecasting benchmarking report pointed out, “for companies trying to predict demand in March of 2020 as the world was descending into lockdown and everything was being turned upside down, what happened in March of 2019 had little to no relevance.”. During the pandemic, forecasting accuracy was terrible.
Determining the total cost of transportation is essential to understanding your company’s profitability. Understanding the total cost of transportation means understanding the costs and factors affecting spend in each leg of the supply chain. When it comes down to it, accounting for the total cost of transportation is pretty complex.
At a recent industry conference, a shipper asked me many questions about transportationprocurement, such as, “How do you best determine how long and how often to have transportation sourcing events?” Read more Why Benchmarking is the First Step to a Successful Freight Procurement Event. The good news.
Businesses need to identify vulnerabilities in their networks, from supplier dependencies to transportation delays. These include alternative sourcing strategies, backup transportation routes, and emergency inventory reserves. A hybrid approach with centralized and regional distribution centers provides better adaptability.
that is transforming the $800 billion transportation and logistics industry with its digital freight marketplace platform. and is transforming the $800 billion transportation and logistics industry with its digital freight marketplace platform. George Abernathy and Joe Lynch discuss the state of the industry. About George Abernathy.
In a similar vein, a major 3PL that I spoke to last week at Eye for Transport is considering discontinuing the traditional storage of spare parts and initiating a new service to do 3D printing of parts on demand. It is clear to them that Amazon is going to be anything that they want to be, and that they need to defend their turf.
IL’s educational mission is to guide businesses to efficiently manage logistics, reduce and speed inventory, and neutralize transportation cost increases by aligning supply to demand and adjusting enterprise functions to support that paradigm shift. Inbound Logistics is the pioneering magazine empowering demand-driven enterprises.
When you think about the overall transportation management lifecycle, procurement is one of the most critical components because it plays a role in planning, execution, benchmarking, carrier relationship management, and so much more. If you don’t get procurement right, the rest of the process suffers.
Global supply chains are built on three assumptions: rational government policy, availability of transportation resources, and low variability. For example, I recently interviewed someone in procurement who is working on SCOPE 3 emissions and tariff readiness. Procurement was operating in isolation from supply chain.
Well, I asked Steven Thacker, one of our benchmarking management experts, exactly that question! What is Benchmarking? Benchmarking is essentially comparing; comparing one against another. Those levels are “benchmarks”. Of course, benchmarks and benchmarking can cover all kinds of different things, at work or elsewhere.
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