You probably play a lot of roles throughout the week if you’re a logistics operation manager. There are a lot tasks you’re in charge of to keep the supply chain running at peak performance, and coordinating the entire operation will keep you busy.
Of all the things you need to do, you probably work to optimize shipping routes, monitor performance reports, manage efficiency, track inventory, and plan carrier selection. You may use a transportation management system shipping software to help you with these logistics management tasks, but it could still be difficult.
What you do every day can affect the performance of the entire business, even if you feel you’re just working in transportation management. A lot of complications in logistics management can cause problems elsewhere, if things like late delivery, damaged goods, messy finances, missed claims, poor customer service, and more arise from supply chain management and transportation management tasks. Transportation management can greatly affect customer relations, purchasing, sales, finance, and other areas of the business.
This is the reason supply chain visibility plays a vital role in business management, and recently, also in logistics management. An inaccurate or incomplete view of activities within the transportation department may cause the company to miss out on opportunities to save money shipping and might hinder growth overall.
Being transparent throughout all areas of your supply chain, beginning with the supply chain, will lead to impressive results for your freight shipping and parcel shipping processes.
How can visibility keep the business competitive?
Visibility in supply chain management means gaining a balanced view of interdependent transportation activities. This means you’d have to monitor all operations from freight expenditures, shipping practices, forecasting, and carrier relations, in order to judge the state of your supply chain now and in the future. When this is achieved, the management and transportation consultants should find ways to translate the observations into strategic techniques that would decrease risks across the whole supply chain.
New efficiency, which includes accountability measures and automation, will make sure that time, personnel, and money aren’t put to waste both in short-term and long-term. Polishing logistics operations will also leave the other areas of the business with room for improvement. This would lead to better decisions for shareholders and better competitive standing.
Through the aid of a modern transportation management system, as well as an invested 3PL partner, your business can improve in the following areas:
Sales – the sales team can make a better estimate of the total cost of closing a deal with accurate profit margins and cost of goods sold.
Customer relations – your customer service team will be more proactive and can better serve your customers when they are given access to more resources and shipping process details.
Financing- easy spend tracking, claim mitigation, and segmented freight analysis would be possible with accurate invoices and financial reporting.
Supply Chain Management – full supply chain visibility can help executives get a better understanding of company operations and therefore be able to pull KPIs to make informed adjustments in spend.
Taking the first step
It may seem like a complex process to achieve the needed level of visibility that will allow you to make real improvements in logistics, especially with factors such as: multiple suppliers, charges for late deliveries, and keeping manpower at a minimum level. But it’s important to realize that investing in the right tools will be valuable in pushing a proactive approach to transportation management that will let you control the moving pieces and initiate a company wide efficiency adoption.
Begin by choosing relevant team members who can closely watch the current process and then suggest possible actions to improve efficiency – this can even be a team of dedicated 3PL experts. You would also need the right technology in order to monitor the data coming in from your supply chain. For the modern manufacturer, a transportation management software should offer multiple modules and should be user-friendly.
The right mix of people and technology will put your company on the road to transparency and success.