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How can you use your transportation network to create value?

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Transportation management is the process of planning, executing, and optimizing the movement of goods and services from origin to destination. It involves various activities such as selecting carriers, routing, scheduling, tracking, and measuring performance. Transportation management can have a significant impact on the value of your business, as it affects your customer satisfaction, operational efficiency, and environmental sustainability. In this article, you will learn how you can use your transportation network to create value for your organization and your stakeholders.

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1 Understand your transportation needs

The first step to create value with your transportation network is to understand your transportation needs and goals. You need to assess your current and future demand, your service level requirements, your cost structure, and your risk exposure. You also need to identify your key performance indicators (KPIs) and metrics to measure your transportation outcomes. By understanding your transportation needs, you can align your transportation strategy with your business objectives and prioritize your improvement opportunities.

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Becky Boyd

Leading PR & Marketing Agency for supply chain, logistics, transportation, warehousing, & technology businesses. Approved LinkedIn Author.
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To create value with your transportation network, you need to use the right set of tools, which include transportation management, transportation planning, transportation optimization, transportation scheduling, and execution. Many of these functions come within a TMS, but some TMS systems only have a few of these functions. Each function is equally important: - plannning: processes involved in optimizing and managing the movement of goods and shipments within a supply chain or logistics network. - optimization - using advanced algorithms and mathematical models to find the most efficient ways to execute operations. - scheduling - creating and managing detailed plans and timetables for the pickup and delivery of goods.

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2 Optimize your transportation network design

The second step to create value with your transportation network is to optimize your transportation network design. This means choosing the optimal locations, capacities, and flows of your facilities, such as warehouses, distribution centers, and terminals. You also need to consider the trade-offs between transportation modes, such as truck, rail, air, or sea, and the level of consolidation, such as full truckload (FTL), less than truckload (LTL), or parcel. By optimizing your transportation network design, you can reduce your transportation costs, improve your service levels, and increase your flexibility and responsiveness.

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Becky Boyd

Leading PR & Marketing Agency for supply chain, logistics, transportation, warehousing, & technology businesses. Approved LinkedIn Author.
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Optimizing your transportation network design involves using tools to achieve cost savings, efficiency, and better customer service in logistics and supply chain management. The tools use analytics gathered across the supply chain to identify patterns, bottlenecks, and areas for improvement. Gain complete visibility into your supply chain and transportation operations, enabling real-time monitoring and tracking of shipments and resources. Consolidate shipments from multiple sources or destinations to reduce transportation costs. Analyze the location and capacity of warehouses and DCs to minimize transportation distances and improve order fulfillment. Select carriers based on their capabilities, performance history, and cost-effectiveness.

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3 Implement transportation management systems

The third step to create value with your transportation network is to implement transportation management systems (TMS). TMS are software applications that help you automate and streamline your transportation processes, such as carrier selection, rate negotiation, shipment planning, execution, tracking, and settlement. TMS can also provide you with visibility, analytics, and reporting capabilities to monitor and improve your transportation performance. By implementing TMS, you can enhance your operational efficiency, accuracy, and productivity, as well as your customer satisfaction and loyalty.

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Becky Boyd

Leading PR & Marketing Agency for supply chain, logistics, transportation, warehousing, & technology businesses. Approved LinkedIn Author.
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Using a transportation management system, automate transportation operations, such as carrier selection, rate negotiation, booking shipments, freight pay & audit bills, execute shipments, and track shipments from end-to-end. Make sure the TMS you use is cloud-based so it is easier to implement and upgrade. Ensure the TMS provides analytics and reporting capabilities so that you can continually improve your transportation operations.

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4 Leverage transportation partnerships

The fourth step to create value with your transportation network is to leverage transportation partnerships. This means collaborating and communicating with your internal and external stakeholders, such as suppliers, customers, carriers, brokers, and third-party logistics providers (3PLs). You can also join transportation networks or platforms that connect you with other shippers and service providers to share information, resources, and capacity. By leveraging transportation partnerships, you can access more options, opportunities, and insights, as well as reduce your risks and uncertainties.

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Vignesh S

Linkedin Top Inventory Management & Warehouse Operations Voice | LSSYB | Strategic Supply Chain Professional | Supply Chain Manager | Operations Manager | Expertise in Warehouse | Logistics | Supplier Management
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Transportation partnerships, multi-channel integrated networks, and TMS systems play a key role in leveraging. 1. From my experience, organizations should consider using a shipping partner network like Shipbob where we can choose to integrate to 1 platform instead of multiple partners. 2. Using a multi-model transportation service provider will reduce the cost and time. 3. Connectivity of transportation network and service provider reach globally to handle any disruptions. 4. TMS system that enables live tracking and suggests the best network model for optimization.

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5 Adopt transportation best practices

The fifth step to create value with your transportation network is to adopt transportation best practices. This means following the proven principles and methods to achieve your transportation goals and optimize transportation performance. Examples of best practices include conducting regular audits and benchmarking, implementing improvement initiatives, applying lean and agile methodologies, incorporating sustainability and social responsibility into decisions, and developing a transportation culture that encourages learning, collaboration, and excellence. Adopting these best practices will ensure your transportation network is always aligned with business needs and delivers value to your organization and stakeholders.

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Becky Boyd

Leading PR & Marketing Agency for supply chain, logistics, transportation, warehousing, & technology businesses. Approved LinkedIn Author.
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Effective transportation management is essential for optimizing supply chain operations, reducing costs, and ensuring timely and reliable delivery of goods. Best practices include: - Using the right TMS for your business - Build strong relationships with carriers - Optimize routes and schedules - Collect and analyze transportation data to identify trends, inefficiencies, and opportunities for improvement. - Use load planning solutions to maximize the load within your truck - Use load-leveling solutions to smooth the flow of product from day-to-day on each lane. This enables early tendering and considers constraints within your transportation operations to reduce detention time and volatility.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use your transportation network to create value?

1

2

3

4

5

6

1 Understand your transportation needs

2 Optimize your transportation network design

3 Implement transportation management systems

4 Leverage transportation partnerships

5 Adopt transportation best practices

6 Here’s what else to consider

Transportation Management

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How can you use your transportation network to create value?

1

2

3

4

5

6

1 Understand your transportation needs

2 Optimize your transportation network design

3 Implement transportation management systems

4 Leverage transportation partnerships

5 Adopt transportation best practices

6 Here’s what else to consider

Transportation Management

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