Question

What is the role of transportation management in connection with supply chains?

Answer 1

Role of transport management in supply chain are given below:

1. Proper transportation management tender loads, track shipments, and gather and analyse historical performance data. This data, allows a company to see what’s happening in its shipping operations depending on which changes can be implemented to increase efficiency and customer satisfaction, reduce transportation spend, and optimize packaging.
2. With successful transportation execution, inventory can be kept lean with effective movement of material in and out of the warehouse. This improves warehouse efficiency, reduces overall lead time and saves money on storage. Creating effective inventory flow through transportation avoids damage caused by disruption.
3. Having inefficient transportation processes increases environmentally-hazardous processes and can make a product unappealing to a customer due to the harm that comes with it.
4. A company that has optimized transportation processes, such as short dwell-times and long tender lead times, will be a preferred shipper and have an easier time finding capacity because carriers will want to work with someone who boosts their efficiency. Having access to reliable capacity can save a company significantly on overall logistics costs and can continue to provide a high level of service for customers.
5. The processes in between procurement and shipping can be long and complicated, but out of all of these processes, transportation is the one where a company has direct contact with a customer. If a company is constantly delivering products late, the customer will have a very negative view of this company and will likely not use their services again. Proper management of transportation can ensure high delivery performance and consistent customer satisfaction.
6. From the trucker perspective, proper transport management system will ensure full truckload to meet customers demand and at the same time maintain low price per unit of truck load. This can also provide some leeway for the service providers to stay at customer end (depending upon the wait time) with sustaining much loss.