Global Logistics and Supply Chain Strategies - October 2008 - (Page 12)

What! You Still Don’t Have a TMS? transportation management systems and what they can do for you, and still you’ve done nothing about it! How many times? How many times has someone said you can save a lot of money if you just implement a TMS. I mean a LOTTA money. But what, you think money grows on trees? It doesn’t, you know. People can talk until they’re blue in the face, but still, STILL, you don’t have a TMS. I mean, what do I have to do to get THROUGH to you!?!” Ha-ha, a little fun there. In business you can’t very well send someone to their room for not doing what they’re supposed to do, right? We’re all adults, so let’s act like it. But I mean really, is there some reason why you don’t have a TMS? Still? As you might have guessed, transportation management is the subject of this month’s cover story. It abundantly details how valuable a TMS can be. As if you didn’t KNOW that already. And it notes that despite the well-known benefits of these systems, amazingly, I mean AMAZINGLY, many people still don’t have one. When the evidence is there to show that a company’s business success is tied to its transportation spend, it’s amazing—did I say that already? I’m amazed—that so many enterprises still have no TM program. Whatever. I don’t want to nag. Let me just say this, and then we’ll move on: despite skyrocketing fuel costs and rising transportation rates, the majority of manufacturers and retailers have failed to invest in transportation management systems that can save money and optimize supply chains. I magine this scenario: “How many times have you been told about I mean, hello, gas is out of sight, transportation budgets are worthless, in the round file, in the toilet, but nearly two out of three companies across every industry lack the technology or processes to efficiently manage transportation. HELLO!!! Tons of companies still use spreadsheets—spreadsheets! —to handle all day-to-day shipping operations, contract negotiation, carrier performance measurement and other parts of transportation management. Forty percent of them say they have poor transportation service. What, only 40 percent! Among other things, these folks have to expedite a HUGE amount of stuff and their on-time deliveries are every once and a while. I don’t want to harp on anything, I really don’t, so let me just say this: If managers have information about their shipments and orders at the point of decision making, they have much more flexibility in finding ways to lower costs in the warehouse or elsewhere in the business. I mean, that makes sense, right? So why don’t companies go for it? Ah, they say they don’t know enough, don’t have enough money and can’t get the boss’s buy-in. What can I tell you? This kind of information has been right in front of you all this time, but OK, read this story and learn. Hey, there’s a TMS for every budget. Get some new bosses? I don’t know. Listen to me. The benefits are real. You’ll be better off. But, you know, it’s your decision. I don’t want to interfere or anything. I’m just saying. Russell W. Goodman rgoodman@glscs.com 12 OCTOBER 2008

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Global Logistics and Supply Chain Strategies - October 2008 Contents Editorial GL&SCS Exclusive Fastforward Up Front The Top Story In the Driver's Seat Think Inside the Box Recipe for Success NITL Preview Opinion Industry Voices

Global Logistics and Supply Chain Strategies - October 2008

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