Executive Briefings

Integrated Transportation Management Enables Better Responsiveness and Control

A new report from Aberdeen Group examines the processes and technologies around transportation management that high-performing companies use to achieve exemplary results.

The report, "Integrated Transportation Management: Improve Responsiveness with Real-Time Control of Execution," focuses on the advanced optimization and supply chain visibility capabilities that differentiate superior transportation performance. For best-in-class (77 percent) and industry average (66 percent) organizations, the "increasing cost and service impact of transportation" represents the top pressure driving action.

In this study, both cost and service metrics were balanced and then compared to rank top performers from their peers. "There is no secret formula for achieving superior performance in transportation," says Bob Heaney, senior research analyst, Aberdeen Group. "However, those companies achieving top performance shared several common characteristics, including on-the-fly decision-making and near real-time visibility with optimization of execution within their processes. For instance, best-in-class companies are 2.3 times as likely to measure external group (suppliers / carriers / 3PL) performance weekly and they are 29 percent more likely to use dynamic shipment optimization software."

The study suggests that there are three key recommendations common to all companies. They should: (1) acquire supply chain visibility to the item/inventory and landed cost level, (2) employ near real-time dynamic optimization to enhance cost/service, and (3) enhance collaboration with internal groups and external customers and trading partners.

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A new report from Aberdeen Group examines the processes and technologies around transportation management that high-performing companies use to achieve exemplary results.

The report, "Integrated Transportation Management: Improve Responsiveness with Real-Time Control of Execution," focuses on the advanced optimization and supply chain visibility capabilities that differentiate superior transportation performance. For best-in-class (77 percent) and industry average (66 percent) organizations, the "increasing cost and service impact of transportation" represents the top pressure driving action.

In this study, both cost and service metrics were balanced and then compared to rank top performers from their peers. "There is no secret formula for achieving superior performance in transportation," says Bob Heaney, senior research analyst, Aberdeen Group. "However, those companies achieving top performance shared several common characteristics, including on-the-fly decision-making and near real-time visibility with optimization of execution within their processes. For instance, best-in-class companies are 2.3 times as likely to measure external group (suppliers / carriers / 3PL) performance weekly and they are 29 percent more likely to use dynamic shipment optimization software."

The study suggests that there are three key recommendations common to all companies. They should: (1) acquire supply chain visibility to the item/inventory and landed cost level, (2) employ near real-time dynamic optimization to enhance cost/service, and (3) enhance collaboration with internal groups and external customers and trading partners.

Read Full Article