transportation management systems: trends and roi
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Transportation Management Systems: Trends and ROI. NITL Conference November 11, 2004 Jane Biddle. The Headlines…. Issues and Opportunities Creating Sense of Urgency!. Behind the Headlines…. 30,000 Intermediaries Around the Globe: Point systems have evolved over time - PowerPoint PPT PresentationTRANSCRIPT
Transportation
Management
Systems:
Trends and ROI
NITL Conference
November 11, 2004
Jane Biddle
The Headlines…
Issues and Opportunities Creating Sense of Urgency!
Behind the Headlines…
30,000 Intermediaries Around the Globe: Point systems have evolved over time Reliant on paper, faxes, phone calls
• Many ‘opportunities for failure’
Change Being Driven From Top Down: Corporate leadership strategies Increased focus on supply chain execution Internet-based & more affordable solutions
Challenge: Leverage TMS Trends and Technology To Accelerate
Supply Chain Performance.
A Vision for TMS Leadership
Supplier
Contract Manufacturer Alert
Notifications
Customs Status
Stock Levels Shipment
Status
RemoteFacility
OrderStatus
OrderStatus
OrderStatus
OrderStatus
OrderStatus
Retail
Customer HQ
Customer DC
Stock Levels
ShipmentStatus
ShipmentStatus
Command and
ControlAlert
Notifications
Agenda
A Vision for TMS Leadership Application Landscape Enabling Corporate Strategy Value Proposition
Total Worldwide Trade $12.6T(WTO/2002)
Landscape – Industry Perspective
Total Worldwide Logistics Costs $1.5T (Cass/2002)
Customs Clearance Cost
$150B (Stephens/2003)
Supply Chain Management $6.7B by 2008 – CAGR 5%
(AMR 2004)
Financial Settlement
$2.6T+ $640B (@Global
Trade)
Cost of U.S. Trade Security
Improvements
$83B (ARC)Cost of U.S. Compliance
Systems$15B
(Stephens/2003)
Transportation Management
Systems $1.2B by 2008 (ARC 2004)
Logistics Visibility & Control $500M
by 2008, 29% CAGR (ARC 2004)
Plan Make Source Deliver
Pla
nn
ing
Tac
tica
lE
xecu
tio
nS
trat
egic
Application Landscape: High Level
ERP
TMS/GTM
ERP
SRM
Supply Chain Planning
Production PlanningInventory ControlGood Mfg PracticesQuality Reporting
SourcingCatalogHTSExport
BPM & Finance
MESWIP Op InstSCADALabor Mgmt
Application Landscape: Detailed
CADFormulation
RFQ/QuoteVendor MgtPurchasing
Track & Trace
Trade ContentRegulationsContract MgmtTruck/RailAir/Ocean
CRM
Import/ExportDomesticInternationalContract PriceBook/Tender
Supply Chain Inventory
Forecasting Demand Planning ATPPlanning Optimization CPFR
PLM
CAMPlant Maint
Network Design
Business Rules Event Mgmt
CustomerService
FinancialSettlement
Total Landed
Cost
Supply ChainNetwork
CSI/CustomsDoor Delivery
FulfillmentDC Delivery
Demand MgmtOrder Mgmt
TMS: Platform or Application?
Option #1: Platform (Are Shippers Ready?) Business unit optimization –> SC optimization
Departmental optimization –> Enterprise optimization
Standardization - data, processes, metrics
Option #2: Application (Are Vendors Ready?) ERP/SCM vendors moving ‘out and down’
TMS players moving ‘up and across’
3PLs, Forwarders adopting Technology
Convergence Is On The Horizon-
Leverage IT Investments
"If you have built castles in the air, your work need not be lost. That is where they should be.
Now put the foundation under them."
- Henry David Thoreau
Packaged Applications
ERP
SCP 4PLs
Domestic TMS
Global Visibility
WMS Compliance
SAPSSAPeopleSoftOracle
Manhattan HighJump (3M)Optum/Metasys
ManugisticsI2CAPS (SSA)
G-LogRedPrairieDescartes
BridgePointLogNetGT Nexus Vastera
NextLinxOpenHarbor
UPSFedExDHL
Checklist Considerations
Corporate Compatibility vs. Best of Breed
Single Data Model AND Local Configurability
Multi-Multi-Multi
Product Road Map
Purchase vs. On Demand
Technology Integration Strategy:Trade data and compliance reporting
Supply chain inventory and assets
Settlement and financial systems
Role of 3PL Information Systems
Agenda
A Vision for TMS Leadership Application Landscape Enabling Corporate Strategy Value Proposition
Corporate Leadership Strategies
Lean Enterprise/Supply Chain
Customer Driven Supply Network
Competitive Advantage Price
Quality
Service
Even The Best Strategy Will Not Succeed Without The Ability to Execute!
Enable Corporate Strategy
Be an Agent for Change:• Go where the action is - gain insight and support
• Recruit Colleagues and ‘The Brass’
• Political Campaign of your Career?
Develop Business Case:• Tangible: ‘Top Line’ and ‘Bottom Line’
• Intangible: Opportunity to ‘Break Through’
• Risk of Status Quo
Name It – Brand It – Launch It Establish Metrics & Reward Success
Your Reality – Déjà Vu?
“Perhaps in time the so-called Dark Ages will be thought of as including our own.”
Georg Christoph Lictenberg (1742 - 1799)
Circa 1990mrp -> ERP
Circa 2004tms -> TMS
Break Down The Barriers
PurchasingSourcing
ImportCompliance
SalesService
ExportCustoms
FinanceRegulatory
TrafficDepartments
HTSDenied Parties
Match & Pay
Purchase Order
Bills of Lading
Commercial Invoice
Import Documentation
New Workflows Information Standards Centralized Planning
Collaborative Execution Measurement Performance Extending Integration
Set Standards for Integration
ERP ERP
Play a Leadership Role!
Think Globally, Act Locally
Establish Metrics Enterprise
Supply Chain Partners
Centralize PlanningInbound/Outbound
All RegionsAll Modes
Global Tiger Team: Education
Tiger Teams: OperationsSystems Reporting
Tiger Teams:Operations
SystemsReporting
Agenda
A Vision for TMS Leadership Application Landscape Enabling Corporate Strategy Value Proposition
AMR Value Proposition
“Companies that have connected their partners through collaborative execution practices have seen the following benefits:
Increase in the fill rate by 10% Cost reduction of 5% (of revenue) Reduced planning & execution cycle time by 15% Reduction in inventory by 50% in a year Inventory obsolescence reduction by 80%”
“Connecting Collaborative Planning to Execution for Results”AMR Vinay Asgekar, July 30, 2003
Start With ’Quick Wins’
Automate Ordering/Pricing Processes Provide On-Line Visibility Eliminate Paper Handling Integrate TMS with ERP/Finance Link TMS to Compliance Systems Others?
Establish Key Metrics
Customer Satisfaction• Order Accuracy
• Order/Invoice Cycle Time
• Performance
Inventory• Days of Supply
• Carrying Costs
• Warehousing Costs
Transportation• Carrier Performance
• Asset Utilization
• Inbound/Outbound
Compliance• Document Management
• Reporting
• Audits
Collaboration• Global Visibility
• EDI Connections
Technology Expectations
Today - Visibility Cost Savings Operational Efficiencies Reduced Risk of Non-Compliance Improved Customer Satisfaction
Tomorrow – Full Transparency Increased Reliability Improved Flexibility Global Dashboards Competitive Advantage
