At the core of supply chain management is transportation. Products move from one destination to the next and the factors relating to transportation are many:
- Products – small items, fragile items, complex packaging, hazardous materials, oversize or specialty products can have a direct effect on transportation’s efficiency and costs.
- Geography – global supply chains are inherently more complex to manage than regional operations, but both must be optimized for high efficiency and reliability. Whether around the block or on another continent, if there are two steps or more to the supply chain, there are opportunities to improve transportation.
- Security – confirming that products safely move throughout the supply chain with minimal risk of damage or theft is essential. Businesses must mitigate risks while maintaining high levels of efficiency.
- Mode – air, rail, LTL, truckload, small parcel or ocean transport each has its unique set of challenges and processes to address.
- Coordination – transit time is everything, and a moment wasted at one point can cause significant issues downstream.
- Tracking – systems and procedures must be in place to monitor shipments, identify issues and provide statistical analysis when needed. Your customers now expect shipment tracking in real-time.
- Costs – between every point in the supply chain is a transportation line that will directly affect overall costs of products. With many companies transportation expenses encompass 6% to 10% of revenue and nearly 45% of overall supply chain expenses. These transportation expenses must be tightly controlled while maintaining efficiency and service.
TMG has a proven methodology to address all of the factors involving supply chain transportation. The TMG transportation consulting approach is built from decades of experience across a variety of industries. Whether global or regional, optimization of these five main workstreams will deliver your business substantial benefits:
- Strategy – from network structure to modes and business partners, all areas are evaluated to determine their alignment with your business goals
- Operations – daily task executions are reviewed and optimized for high quality and high efficiency
- Administration – detail analysis is captured and monitored to insure incremental improvements and benchmarking to industry standards as part of the transportation consulting services
- Finance – evaluate Return on Assets (ROA) to determine any cost issues and review profit center structures to reveal cost reduction opportunities along with revenue growth opportunities
- Technology – application of the right technology will enable ongoing improvements and swift problem solving before issues get out of control.
TMG understands that every supply chain is different. The staff of trained transportation consulting experts at TMG can help you to identify your unique supply chain challenges and optimize from industry expertise to achieve your business goals.