Transportation Management

• A transportation management system (TMS) is a subset of

supply chain management that deals with planning,
execution and optimization of the physical movements of
goods. In simple term, it is a logistics platforms that enables
users to manage and optimize the daily operation

• The actual physical movement of goods and people between

two points.
 Transportation Management
• TMS integrates well with enterprise order management,
warehouse management and inventory management,
customer relationship management (CRM) and other
systems for managing transport demand. It enables users to
plan and manage both international and domestic shipments
and determine the cheapest and most efficient carrier.

• Transportation management can divided into mode of

transports, method of selection, transportation costs, fleet
sizing and configuration, routing and scheduling, and
futuristic direction in transportation.
Transportation Modes
 Transportation Attributes
• The attractiveness of a particular mode
depends on the following attributes:
– Cost
– Speed
– Reliability/ Dependability
– Capability
– Capacity
– Flexibility
 Transportation Attributes
  Rail Truck Water Pipeline Air Remarks

Speed 3 2 4 5 1 Air is the fastest

Availability 2 1 4 5 3 Road is the best since they can drive from

origin to destination

Dependability 3 2 4 1 5 Pipeline ranks best as the service. It is

continuous and there is no stoppage due
to traffic or congestion

Capability 2 3 1 5 4 Sea is the best. It can handle all types and

size of cargo

Frequency 4 2 5 1 3 Pipeline ranked best. As the movement is

continuous
 Transportation Benefits
• 4 benefits of transportation :
– Visibility
Proper transportation management begins with a
transportation management system (TMS). A TMS will
automatically tender loads, track shipments, and gather
and analyze historical performance data. This data,
often referred to as big data, allows a company to see
what’s happening in its shipping operations. Once
visibility is gained into transportation operations,
changes can be implemented to increase efficiency and
customer satisfaction, reduce transportation spend,
and optimize packaging or storing procedures that are
harmful to overall supply chain goals.
 Transportation Benefits
• 4 benefits of transportation :
– Inventory Flow
Effective transportation management keeps a
company’s whole supply chain running smoothly. With
successful transportation execution, inventory can be
kept lean and can be moved in and out of a warehouse
quickly and efficiently. This improves warehouse
efficiency, reduces overall lead time and saves money
on storage. Supply chain disruptions can be costly,
while hurting customer satisfaction and loyalty.
Creating effective inventory flow through
transportation avoids damage caused by disruption.
 Transportation Benefits
• 4 benefits of transportation :
– Sustainability
Consumers are more and more aware of what it is
they’re buying and what ideals a company subscribes
to. As was mentioned earlier, transportation is an
emission-heavy industry. Customers want to buy from
companies who take social responsibility seriously
and work hard to reduce its carbon footprint and
minimize its energy consumption. Having inefficient
transportation processes increases these
environmentally-hazardous processes and can make a
product unappealing to a customer due to the harm
that comes with it.
 Transportation Benefits
• 4 benefits of transportation :
– Customer Satisfaction
The processes in between procurement and shipping can
be long and complicated, but out of all of these processes,
transportation is the one where a company has direct
contact with a customer. The point of delivery reflects the
competency of the entire organization – if a company is
constantly delivering products late, the customer will have
a very negative view of this company and will likely not
use their services again. Last mile logistics, the last stretch
before delivery, is complicated, costly, and it is often this
part of delivery that causes disruptions and delays. Proper
management of transportation can ensure high delivery
performance and consistent customer satisfaction.