A Brief Note On Transportation Management Systems

Submitted By MissLegss
Words: 1260
Pages: 6
Open Document
Allegra Haritan
11/4/2014

In accordance with the business school’s Code of Ethical Behavior, I attest that I have not engaged in any acts of plagiarism in completing this assignment

Transportation Management Systems

Transportation Management Systems are software solutions that are implemented to improve the effectiveness, as well as reduce the costs, of transportation within a company’s supply chain. “They address all modes of transportation, including ocean, air, rail, full truckload, less-than-truckload, Parcel, and private fleet. TMS systems manage the physical flow of goods as well as the flow of transportation-related information, documents, and money” (Ross, 316). Operating a supply chain requires transportation management to play a more significant role in the supply chain than just directing modes of transportation and delivering product. “It must execute flawlessly, accurately, and timely processes that span the entire order cycle from bid to delivery” (Ross, 315). A well executed TMS should reduce costs through better route planning, load optimization, carrier mix, and mode selection. It should provide visibility into the transportation chain and allow greater flexibility to make changes in delivery plans (Rouse). The scope and functionality of TMS applications have changed significantly since their beginnings in the late 1980’s evolving from a fragmented collection of applications to a unified platform where users can execute role-specific processes (Ross, 316). These can be executed using configurable user interfaces, work flows, and web services. Web enabled TMS allows the networking of information between many external parties and allows the interconnecting of carriers, suppliers, customers, and logistics service providers across e-marketplaces. TMS systems manage the key processes in transportation management which include planning and decision making, transportation execution, transportation follow-up, and measurement. TMS systems define the most efficient routes according to given parameters which have a higher or lower importance according to user policy: cost, lead time, number of stops, etc. “Transportation execution allows for the execution of the transportation plan such as carrier rate acceptance and carrier dispatching and transport follow-up will allow traceability of transport event by event (shipping time, arrival time, customs clearance, etc), invoicing and booking documents, and sending of transport alerts (delays, accidents, non-forecasted stops, etc)”(Rouse).
Enterprises can now leverage the SaaS model versus the traditional and past hosted models to acquire TMS capabilities. Until recently, Companies not using TMS often said that it was too expensive to purchase and time consuming to implement but now this excuse is no longer valid. “On demand TMS has significantly eliminated the cost and resource constraints and shortened the time-to-value companies traditionally faced in implementing new technology and continuous improvement initiative” (Ross, 317). In a SaaS model the network of shippers, carriers, and other trading partners are already built into one software/hardware setup of the TMS that multiple shippers, carriers, and other trading partners can use.
Implementation of a TMS allows for countless savings opportunities. ARC Advisory Group has shown that companies can “reduce their transportation costs by 5 to 25% or more by using a TMS to streamline and automate their transportation planning and execution processes” (HighJump). Manually controlling transportation costs is difficult to do when you have a lot of criteria to consider when analyzing the movement of goods. Automating transportation processes such as mode and carrier selection and compliance requirements can save time and money. When using a TMS a company can be sure that the numbers are correct as they are coming from an automated system that uses a series of logarithms to compute its
Show More

Related Documents: A Brief Note On Transportation Management Systems

Essay on Transport Management system

radio-frequency identification (RFID) and service oriented architecture (SOA). In most cases, IT didn’t change as fast as the market and many companies are forced to deal with antiquated TMS that results in high costs and time used for maintenance. The gap between business and IT is increasingly growing. While in the past, logistic companies have been successful due to locality, intimacy and customer specific products, they now have to work globally, be network oriented and transpar-ent. Transportation volume…

Words 616 - Pages 3

DSS TMS paper

Vick Kolli DSS TMS TMS or Transportation Management System is best defined as “software solutions that facilitate the procurement of transportation services; the short-term planning and optimization of transportation activities, assets, and resources; and the execution of transportation plans” (Ross 316). TMS is a subset of Supply Chain Management (SCM) software, primarily focused on transport logistics. The scope of TMS applications has changed since their beginnings. While the transportation…

Words 1400 - Pages 6

Research Paper On Fedex

newly revamped set of information technology rules that is developed and delivered by the companies Information Technology (IT) strategy management office. The FedEx Corporation is committed to their customers. They provide outstanding value-added logistics, transportation and related information services through focused operating companies that is aligned with their Mission Statement of: “Total customer commitment. Customer requirements are met in the highest quality manner appropriate to each market…

Words 617 - Pages 3

Assignment On Logistics

SCM 460 GLOBAL SUPPLY CHAIN STRATEGY Dr. Alex Rodrigues Information Technology Information System Functionality • There are four reasons why timely and accurate information has become more critical for effective logistics systems design and operations: – Customers perceive information about order status, product availability, delivery schedule, shipment tracking, and invoices as necessary elements of total customer service. – Information can be used to reduce inventory and resource requirements…

Words 1104 - Pages 5

Global Transportation Benchmark 2013 Essay

LCC Yes, by More No and No Real Plans 31.00% Yes, Regionally Focused No, but Working Toward 13.50% 23.60% 15.70% 10.10% 9 ` Can you plan/optimize full multi-leg, multi-mode move simultaneously? What is the biggest weakness In your current TMS? 8.80% 27.50% 36.20% 27.50% • • 10 ` Global Transportation Process Capabilities Global Transportation Technology Capabilities Excellent Above Average Average 13.6% 0.0% 30.5% 44.4% 30.7% Below Average Poor 35.4% 7.3% 9.8% 17.0% 11.1%…

Words 593 - Pages 3

SAP Systems Essay

manage them has declined and that has been one of the many advantages from using supply chain software. This paper will focus on different areas that SAP covers in order to manage the supply chain processes. One of supply chain processes is the logistics costs which accounts for more than 20% of the total cost of an average manufacture company here in the United States. (Chopra) Not only have that, the grocery industry here in United States can save an estimated 10% of the operating costs by collaborating…

Words 2180 - Pages 9

Combat Orders Essay example

Combat Orders format Introduction. Combat orders instruction at TBS is a detailed, rigorous package that strives to develop and evaluate your ability to arrive at a tactical decision, communicate that decision, and execute your plans in a time competitive environment. The focus throughout will be on action. Your tactical actions and necessary communication for action will be evaluated under the dynamic, chaotic, and uncertain lens espoused in MCDP-1. You will be required to brief and/or write…

Words 14894 - Pages 60

MKT 431 Exam 2 review Essay

review sheet to verify that you have not missed anything major. The exam will focus on applying ideas that we have learned, so be sure to understand, not just memorize. Materials from prior exam Ideas related to the strategic profit model, ROA, how logistics decisions affect B/S and I/S—this is also in Topic 8 The profit leverage affect What it means How to calculate it Lean principles in general 8- The Basics of Inventory Management The importance of inventory and having the right amount of inventory…

Words 3610 - Pages 15

Army Menu Standards

product and preparation guidance are provided in DA Pam 30–22 chapter 3, para 3-70 menu standards, menu planning and nutrition guidance are provided in AR 40-25, AR 30-22 and TM 4-41.11. DFAC: DFM will ensure his meal service portion control is adequate for each product served on the serving line as per Army recipe card. IAW TM 10-412 recipe index requires portion control for each individual item served in the dining facility, therefore, serving size and portions are briefed to the servers prior to…

Words 892 - Pages 4

Essay On Sap

administration Upgrade existing Instances and Installing new instances across all platforms. Help apply the Disaster Recovery procedures to the SAP Installations. Configure and execute SAP change control functions including the transport management system (TMS) and batch jobs management across our instances. 2)SAP Analyst Design systems specifications, develop, test, and implement cost effective solutions within SAP Plant maintenance Perform hands-on day-to-day support including making configuration changes…

Words 1342 - Pages 6