Business Management Solutions
Transportation Management
Digital solutions for transportation management
Transportation management plays a key role in organizations' supply chain processes, helping to connect customers and suppliers so that they can meet their delivery commitments. For this reason, it is a highly information-demanding industry, where transportation management technology is crucial.
Integrated Transportation Management as a Logistics Strategy
Transportation management has become one of the fundamental processes within the business logistics strategy. In addition to being a key element in the integration of the different areas of logistics processes: procurement, manufacturing, warehousing, distribution and customer service, it can contribute a large part of the final cost of the product. The efficiency of supply chain management is nowadays identified by customers as a differentiating factor.
Optimization of transport management through technological tools
Technological tools, such as transportation management software, optimize operations and reduce costs.
For example, within technology we can find JD Edwards ERP software, which in its version 9.2 allows the management of Incoterms in both sales orders and purchases, through the logistics module. Incoterms are terms to define the tasks, costs, risks and responsibilities between buyer and seller, in addition to the management of transportation and logistics in the transaction.
In JD Edwards there is the option to predefine the default Incoterm to be applied to the customer or the supplier and as a result of this application, determine the logistics costs of the operation.
In addition, JD Edwards provides route suggestions based on the most optimal and efficient routes, according to the hierarchy of preferences, logistics operator, KM and dates configured. You can find more information in our related articles or by contacting us.
Processes to follow for defining transportation strategies in logistics
What processes should be undertaken when defining an integrated transport management strategy? The following are the main ones:
- Analysis of goods flows: situation of manufacturing and distribution plants, main delivery points, and delivery constraints (date restrictions, expiration dates, volumes, etc.).
- Definition of tenders: where the criteria for selecting carriers are standardized and weighted. Definition of KPIs for process performance evaluation.
- Selection of carriers: have several carriers to be weighted, implementation of tools that facilitate online simulation based on destination and quantity. With this, we achieve a simplification and homogeneity of the tariff model.
- Invoice forecasting and balancing: negotiation of a model with suppliers that allows us to anticipate and pre-invoice the expenses incurred and transfer their verification to the supplier.
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At Neteris we have a group of professionals to offer the best solutions and the bestintegrated transport management system.
Ask us for more information to learn more about how we work and take your company one step further.
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