Operations Mgmt Control
Question 1: Why are organizations showing more interest in TMS (Transportation Management System) today compared to the past?
“If you cannot keep up with technology it will surely leave you behind”. Today’s technology can aid you in just about anything you can think of, this is especially true when it comes to the logistics of a supply chain. The Transportation Management System is a good example of such technology. Transportation costs are not cheap when it comes to moving products from point A to point B. The rising cost of fuel and the current economy have caused companies to look for better ways to do things while still reducing costs. I believe the first sentence says it all, things have changed in the business world from the way things were done in the past. Customer demand is driving the boat when it comes to implementing TMS into transportation processes. TMS offers many benefits that allow companies to meet these customer demands. TMS optimizes all aspects of transportation from global, air, land, and sea while also managing the flow of transportation related information with one major thing in mind, reducing costs. Companies that can implement TMS can essentially become more competitive in the market as compared to their competition that does not. This connectivity of system improvements has sparked the interests of organizations and is able to help them get out of the logistics stone age.
Question2: Describe the major types of tasks a TMS can offer in helping to achieve transportation excellence.
Transportation plays an important part of an organizations logistics process. The ability to conduct your transportation processes efficiently makes a world of difference when you are looking to cut costs. The Transportation Management system offers the ability to help in this instance as well in many others. One of the major types of tasks TMS can help with is process improvement. The Transportation Management System can to take numerous manual tasks and reduce them into an automated system. Reducing these tasks give management the opportunity to arrange or reduce the staff that was once doing this job. One of the other tasks that TMS can offer is shipment optimization. Products coming in and out of a distribution center need close attention. TMS has the ability to automatically process both inbound and out bound orders. According to (Gilmore, 2002);
An advanced TMS will provide the ability to automatically process inbound and outbound orders and optimally select the least cost transportation mode. Orders (inbound and outbound) are also optimized to create least cost, consolidated plans that drive substantial savings on net freight bills while meeting customer service requirements and other network constraints.
TMS optimizes the “least cost” option to the best of its ability; this capability cannot be ignored and is a must for organizations to stay...