How supply chain managers get in control of their LSPs again.

Posted by Martin Verwijmeren on Dec 19, 2014 12:30:04 PM

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Supply Chain Orchestration and Transport Management Systems

Omni Channel Sales has put increasing pressure on the P of Place in the traditional Marketing Mix. Specifically the pressure to optimize freight spend makes logistics more the focal point for successful businesses. This development has made it imperative for organizations across the world to reinvent their Supply Chain Management (SCM) strategy.

For shippers, logistics is no longer just a cost component - it is a differentiating factor and a competitive advantage. In many cases transportation is outsourced to multiple Logistic Service Providers (LSPs). But how can you improve outsourcing? Do you have the right information to manage this relationship?

How to improve supply chain partnerships.

As shippers continue to outsource to LSPs, they run the risk of losing control of their logistics costs, and also visibility of their partner’s performance. Instead of shippers delegating all responsibilities to their LSPs, These shippers need to become orchestrators of the supply chain execution again. By building collaborative partnerships with LSPs, shippers gain multiple benefits:

  • Orchestrate logistics from their own Control Tower
  • Offer flexible supply chain services to their customers
  • Provide maximum efficiency, agility, velocity and compliancy in service performance
  • Keep real time control on outsourced freight spend as well as customer satisfaction

By assuming the transport orchestration role, shippers gain a two-fold marketing advantage. They become agile and fast, capable of delivering anything, anywhere, anyway, anytime (Customer Intimacy). They are efficient, and compliant at the same time (Operational Excellence)

By assuming the role of Transport Management Orchestrator, shippers gain real time visibility and control on their outsourcing partners’ performance, their delivery to SLA and budget.

Supply chain orchestration requires a best in class TMS suite

A shipper should be able to choose from a variety of logistics services offered both by their contracted LSPs and in fact, when needed,  from  anywhere in the market. To match these complex customer service demands with complex LSP service capabilities, a sophisticated TMS suite is needed .

MP Objects Transport Management System (MPO TMS) can play a pivotal role as an orchestration tool. It helps shippers create their own logistics control tower by giving them a steering wheel to regulate the performance of Logistic Service Providers.

How you can benefit from the MPO TMS

The MPO TMS is integrated with the shippers’ ERP system. By combining static ERP functionality with dynamic TMS functionality, shippers can get rid of impractical, time consuming and error driven bespoke tools and spreadsheets to carry out day to day operations.

The MPO TMS

The MPO TMS facilitates flexible planning and execution of the outsourced order flows to subcontractors. It captures the complete history of orders and supports comprehensive reporting features to provide business intelligence on transportation services and carrier performance.

Do you still think your supply management system is efficient and able to provide partner visibility and control costs? Check out the list below to find out where you can improve.  

  • Do you feel you can improve service levels through optimal carrier selection?
  • Do you have order visibility and control over carriers performance at the moment?
  • Do you feel confident to quickly handle exceptions through event management?
  • Do you have all the necessary intelligence to create in depth data analyses?

We invite you to learn more on Transport Management Systems. Please download our TMS product brochure.

Transport Management System

Topics: Transport Management Systems

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