The following column was taken from the recent SCDigest Letter on Transportation Management. An electronic copy of that Letter, plus a wealth of other resources can be found at our Transportation Management resources page.
Start with one international manufacturer. Add five distribution centers plus 45 or so carriers. Include hundreds of customer locations across North America. Then you get the equation for today’s complex and challenging global transportation networks.
While most understand this complexity, for companies using technologies to develop deeper visibility into, and control over, their global transportation networks, the view from the top isn’t all that bad.
In addition to growing global logistics complexity, a soft-demand environment with increasing pressures to perform more efficiently has companies moving logistics to the top of their mission critical lists. With transportation costs amounting to more than 50% of total logistics expenditures, optimizing this piece of the supply chain is vital. Driver concerns, changing regulations, fuel costs, global security concerns, and green initiatives only intensify the pressure.
In order for companies to react and remain responsive to customers, they need to enhance visibility into the movement of product – from manufacturer to consumer.