Manufacturers, distributors, and third-party logistics companies all have specific business needs and processes concerning the movement of goods and product from their Inbound & outbound Operations. The movement of product between locations is controlled by CargoNet Transport Management Work Flow.
To support improved efficiencies in the Transportation Process, CN – Work flow fits their current and planned operational needs and that can be integrated smoothly with existing ERP or corporate financial systems. CargoNet unique capabilities on manage and incorporate Fleet and Asset Management within a richly-featured, robust and highly flexible solution for shippers and 3PLs concerned with cost containment and increased efficiencies in domestic surface transportation
CargoNet Transport Management (C-TMS)
The term "CargoNet" is evolving in the marketplace to fit an ever-increasing range of software functionality and purpose. CargoNet is always expected to improve the Shippers 'capabilities to Plan, Execute, Analyze, Benchmark and continuously improve the Management of product flow. As the ranks of Global Corporations with world-spanning supply chains are joined by more large and medium businesses with less attenuated—but no less important—lines of supply, the capabilities and focus of tools designed for the logistics function are changing to meet new demands.
Chief among these emerging requests are the needs for:
- Better cost control tools.
- Continuous improvement metrics.
- Automated, best-mode decision support.
- Improved shipment visibility.
- The affordability of the C-TMS itself.
A proliferation of new and competitive solutions for Transportation Management guarantees that shippers and third-party logistics companies will have more choices in feature mix, hosting mode and price point than ever before, but finding an ideal fit for complex and Distributed Transportation Management processes from among so many candidates will remain challenging.
Domestic Transportation Management
One of the most Challenging segments of freight movement domestically continues to be over-the-road trucking, which accounts for 80% of freight transportation modes. C-TMS that could open a window of business visibility and control Truck Transportation would put unprecedented cost and servicemanagement tools in the hands of shippers and 3PLs.
In the commercial freight sector, one company has established a dominant technology practice focused on improving operational efficiencies, stripping out waste and reducing costs through automation and integration, while bringing increased visibility to key performance indicators and shipment status as well as daily exception monitoring. This technology has been successfully integrated with motor carrier operations for many years.
Historically operating with the slimmest of margins—motor carriers average operating margins of 5-6%-- trucking companies have also been forced to seek out more sophisticated management software and technology capabilities to satisfy the needs of their shipping customers for greater visibility and more efficient business transactions, as well as their own needs to oversee complex and distributed service operations. The margins for error in making profitable transportation decisions are even narrower for asset-based firms than for shippers themselves.
Expectations For a C-TMS
At the highest level, the corporate logistics function responsible for moving goods through supply chain and distribution channels encompasses five major business processes
The flow of product orders from the core ERP system into the transportation management process to be planned for shipment, including consolidated orders and optimal mode selection. The accurate capture of tariffs and contract details is vital to effective planning.
The process of evaluating, selecting, assigning, tendering, and dispatching shipments with transportation providers, including the private fleet. Automate to help ensure organizational compliance, but support ad hoc shipments with best rate/best carrier selection assistance. Active carrier qualification processes are critical to reducing business liability.
Capturing the flow of information for tenders, rating, shipment status, exception alerts and billing with transportation providers to drive KPIs and settlement reconciliation.
Operational business intelligence with historical perspective to spot process inefficiencies, opportunities for increased savings, negative trends that should be corrected.
Benchmark establish operational performance metrics for internal processes as well as service providers so that baselines can be evaluated against improvement goals; where possible, compare with industry average performance statistics, especially contract rating, for a cost "reality-check".
fundamental for optimal savings is the practice of timely re-bids to take advantage of market trends and competitive pressures when possible. Economic conditions and market dynamics should influence bid frequency.
Two goals that are part of every C-TMS purchase decision are minimizing overall transportation costs and optimizing the timely flow of products through the company's supply and distribution chains.
The right C-TMS selection can be expected to benefit the shipper or 3PL in the following ways:
- Improve freight bid process to allow frequent re-calibration with carriers; can yield 10-15% total freight spend savings
- Consolidate multiple orders into single shipments for transport savings opportunities; savings can average 2-5%
- Optimize mode and carrier or private fleet selection for cost and delivery service-level requirements; can save an additional 2-7%
- Provide visibility to shipment status in-transit
- Audit and settle transportation invoices accurately; can yield up to 2% savings
- Track service provider and departmental performance for analysis and decision support
Where private fleets are part of the corporate transportation strategy, additional management capabilities are required because fleets often operate as self-contained business units:
- Electronically receive shipment tenders
- Manage fleet assets such as trucks, trailer and drivers as well as shipment order detail
- Track fleet operation and management costs accurately
- Plan and dispatch transportation assets efficiently and cost-effectively
- Track and communicate shipment status regularly
- Notify, validate and confirm pickup and delivery events