As I was scrolling around the landscape of supply chain blogs and comment boards recently, I came across a question that really struck me as a sign of the times, especially for those of us who are caught up in the ultra fast moving world of information technology and
supply chain software.
The question – What are the leading transportation management software applications available on the market today? – while quite straightforward, left me somewhat confused.
How can this question be answered without more context – international/domestic, modes, host environments, lanes, stops, etc.? You get the picture. Yet, there was no shortage of definitive answers (more than 35 and growing as I write this) to this “swing for fences” type of question.
Considering the growing interest in
Transportation Management System (TMS) solutions over the last few years (
as I mentioned in a previous blog post), it’s not surprising to see these kinds of questions and wide-ranging responses.
The best way (or if you ask me, the only way) to answer this question and identify your best options for the right TMS solution is to approach the question from a broad to narrow perspective in the following stages:
1. Assessment – Consider your products, markets, suppliers and customers. What are the freight flows, supporting systems and enabling technologies? How is transportation effectiveness measured today?
2.
Supply Chain Strategy & Organization – What are the most effective ways to organize transportation inbound/transfers/outbound? How are transportation decisions made (i.e., centralized, decentralized)?
3. Requirements Definition – How is transportation planned to support your strategy? How will the transportation requirements be impacted by future business changes and external factors, such as global supply disruptions or fuel price increases? Where will the relevant data reside, and what level of timeliness will be required?
4. Business Case Development – Where are the gaps in the current strategy? What is the magnitude of the opportunity to close the gaps? How much investment will be required, and what will it take to maintain the new system?
5. Evaluation & Selection – Who are the most qualified TMS providers to meet your requirements? What are the critical functional requirements and key evaluation criteria?
6. Configuration and Integration – What will it take to implement this new system? What are the critical risks and who will manage them (or how will they be managed) throughout the implementation? What are the critical responsibilities of my organization, the software vendor, and my trading partners?
Add them all up and you’re looking at six stages of planning, each one digging down into another level of detail. And notice where the evaluation and selection of a TMS partner shows up in the sequence.
Whether you’re a TMS rookie, researching TMS for the first time, or a seasoned TMS veteran, considering an upgrade to existing application versus a competitive selection, the process is the same. It all starts with a clear understanding of the specific modules in play for your particular transportation environment.
Developing and implementing a comprehensive TMS strategy is not a “swing for fences” endeavor but rather a systematic, comprehensive look at the business requirements, systems support, and operational processes within the supply chain.
Take this one, one base at a time.
-- Kevin
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Tags: transportation management, optimization, solutions