7Cs of Supply Chain Through the Lens of Transportation Management Systems

As global supply chains grapple with mounting challenges, such as disruptions, capacity constraints, and escalating costs, the adoption of sophisticated technology has become an imperative for maintaining a competitive edge. Transportation Management Systems (TMS) have emerged as the backbone of logistical operations, streamlining processes and facilitating more effective supply chain management. According to a report by Resilinc, supply chain disruptions increased by 88% in 2022, with 90% of disruptive events being human caused, underscoring the urgency for resilient and efficient solutions. These systems are the embodiment of what can be termed the 7Cs of effective supply chain management: connectivity, creativity, customization, coordination, consolidation, collaboration, and contribution.

By reducing logistics costs, consolidating shipments and fostering collaboration among various stakeholders, these systems play a pivotal role in enhancing a company’s agility and responsiveness to ever-shifting consumer needs and market conditions.

The integration of TMS into supply chain operations exemplifies how leveraging the right technology is crucial for optimizing transportation, ensuring timely deliveries, and refining carrier interactions. This strategic adoption not only aligns with the 7Cs framework but also demonstrates the transformative impact of digital solutions on the supply chain landscape.

A TMS offers broader applicability across all business scales, from small startups to large enterprises. Contrary to the traditional belief that digital transformation is the playing field of big corporations, TMS solutions like 20High are proving to be vital for businesses of every size. In today’s digitized economy, where agility and efficiency are paramount, small and medium-sized businesses find that adopting a TMS is not just beneficial but essential. It provides them with the tools to streamline operations, maintain regulatory compliance, and manage electronic documentation, such as electronic consignment note (eCMR) and e-invoicing, with greater ease. The integration of a TMS into their operations helps these businesses remain competitive, responsive, and ready to scale, effectively levelling the playing field in a rapidly evolving digital landscape.

In today’s fast-paced logistics environment, the ability to ‘CONNECT’ has become a critical component of efficient supply chain management. Leading solutions in the market are transforming how businesses engage with every aspect of their supply chains, particularly through innovative features like Real-Time In-Transit Visibility and intuitive customer service interfaces such as chatbots.

Real-Time In-Transit Visibility stands out as a key feature, especially in the current landscape where supply chain efficiency is often challenged by delays and increased costs. This functionality provides a detailed and predictive view of shipments, which is indispensable at a time when a significant portion of freights experience delays. It offers granular, real-time tracking and updates, enabling proactive management of the logistics process. Complementing this, the integration of intuitive chatbots for end-customer interactions revolutionizes customer service.

These features ensure immediate, accurate responses to inquiries, maintaining continuous engagement and high levels of customer satisfaction – a critical aspect in today’s environment where 73% of customers told PwC they’d spend significantly less with a company that loses their trust, and 44% said they’d stop buying from that company altogether.

Together, these capabilities foster a connected, transparent, and responsive supply chain environment, addressing the crucial need for timely information and seamless communication.

Fostering innovation and efficiency lies at the heart of the ‘CREATE’ phase in the ever-evolving landscape of supply chain management. The introduction of features like 3D Load Optimization is a game-changer, particularly in addressing the critical issue of trucking capacity underutilization and the substantial financial losses it can cause. While such advanced features may not be standard in entry-level TMS offerings, the emphasis is on making these essential tools more accessible and affordable to a broader audience.

Tackling the challenge of truck underutilization head-on, efficient load optimization becomes not merely an advantage but a necessity, given the slim margins in the transportation sector and the significant operational costs involved. An innovative approach to maximizing truck capacity utilization with cutting edge TMSs like 20High can lead to a reduction in logistics or transport costs by up to 20%. This optimization is more than a mere operational improvement; it represents a significant financial efficiency boost. By aligning demand with available capacity more effectively, it transforms a major industry hurdle into an opportunity for enhanced profitability and sustainability, emphasizing that in this sector, unutilized space directly equates to financial loss.

Customization within the supply chain is crucial for optimizing processes and aligning them with unique business requirements, ultimately driving cost efficiencies. By enabling businesses to tailor solutions to their specific needs, customization empowers them to streamline operations, eliminate redundancies, and maximize resource utilization.

The innovative Order Consolidation feature facilitates shippers in skillfully managing cost-related challenges, such as the choice between dedicated contracts and one-way operations. For instance, a 600-mile dedicated haul might seem economical at $1.25 to $1.50 per mile, but the roundtrip expenses could effectively double these figures. This is where customizable consolidation rules come into play, offering a significant advantage. Shippers have the flexibility to set these rules based on various factors like customer profiles, destinations, modes of transport, shipping dates, or types of items. This enables them to optimize shipments, potentially eliminating one truckload per week for a mid-sized shipper. 20High offers a contemporary and cutting-edge rule-based auto order consolidation feature which captures all the indispensable requirements of the shippers and freight forwarders.

The ability to craft single or multiple consolidation rules of varying complexity not only showcases the depth of customization possible but also highlights how strategic planning can lead to substantial savings in transportation costs, truly embodying the essence of ‘CUSTOMIZE’ in enhancing supply chain efficiency.

The ‘COORDINATE’ function streamlines supply chain intricacies through the seamless integration of sophisticated features like Rate and Contract Management, coupled with robust Freight Audit capabilities. The former serves as a centralized hub, significantly streamlining the often complex interactions between shippers and carriers. By bringing rate cards and freight rates into one accessible location, this feature ensures that all involved parties are on the same page, paving the way for smoother contractual discussions, agreements and carrier assignment.

On the other hand, the Freight Audit feature introduces an automated layer of precision in invoice management, meticulously cross-verifying invoices against established contracts to uphold billing accuracy and adherence. This critical automation plays a pivotal role in preserving financial integrity and trust among supply chain partners, effectively minimizing the risk of expensive errors that can arise from manual processes. Together, these features embody a harmonized financial ecosystem within the supply chain, epitomizing a coordinated approach to managing financial engagements and fostering a climate of reliability and efficiency.

20High TMS offers both – Rates and Contracts Management and Freight Audit. But it goes one step ahead by offering a Carrier Recommendation Engine to list down the best fit carriers for shippers or freight forwarders with just the click of a button.

In the supply chain realm, collaboration extends far beyond internal operations, underscoring the vital need for robust relationships across the board. Transportation Management Systems like 20High seize this opportunity with their Real-Time In-Transit Visibility and Chatbot features, fostering an environment that transcends mere connectivity and cultivates active collaboration. This synergistic fusion of technology and collaboration ensures that all stakeholders, even those beyond the TMS’s direct reach, remain informed and engaged, embodying the essence of a truly collaborative supply chain ecosystem.

However, the path to such seamless collaboration is not without its challenges. Gartner research reveals a striking disparity – while enabled customers are twice as likely to repurchase, a mere 23% of supply chains prioritize enabling their customers. This disconnect highlights the untapped potential for fostering stronger collaborative relationships with end-users.

Deloitte’s 2023 Global Chief Procurement Officer (CPO) Survey underscores the urgency of supply chain resilience and collaboration. A resounding 69% of CPOs cited enhancing risk management and developing resilient supply chains as a top organizational priority. Simultaneously, 61% of respondents believed that increasing supplier collaboration is their primary strategy to deliver value, reflecting the industry’s growing recognition of collaboration as a critical success factor for driving efficiency and competitiveness.

Yet, another concerning statistic from Deloitte’s research reveals that just 13% of firms have achieved comprehensive supply chain visibility, with up to 22% lacking visibility beyond their immediate suppliers. This lack of transparency hinders effective collaboration and highlights the pressing need for solutions that foster end-to-end supply chain integration and real-time information sharing. By leveraging innovative technologies like Real-Time In-Transit Visibility and Chatbot features, Transportation Management Systems like 20High are paving the way for a collaborative supply chain ecosystem that bridges gaps, empowers stakeholders, and unlocks the full potential of supply chain collaboration.

Consolidation in supply chain management means streamlining operations to enhance efficiency and coherence. In the context of a TMS, Order Consolidation optimizes shipping processes by grouping orders based on shared characteristics, making shipping more efficient. Coupled with 3D Load Optimization, this feature plays a crucial role in addressing the financial losses from inefficient truck utilization. Rates and Contract Management functionality centralizes carrier information, optimizing rate handling in a sector where finding trustworthy carriers is often a time-consuming and expensive process. Additionally, a Freight Audit system helps in financial consolidation by automating invoice validations, preventing overpayments in a market where operational costs are high and margins thin. The consolidated data analytics to provide end-to-end shipment visibility including Real-Time In-Transit Visibility provides the vital component for timely decision-making in today’s fast-paced logistics environment. Complementing these functionalities is the Customer Visibility Chatbot, which through its instant and accurate responses to customer inquiries creates a personalized experience and enhances communication efficiency for the customers.

20High TMS exemplifies the ‘CONSOLIDATE’ aspect of supply chain management by seamlessly blending key features to streamline operations and enhance efficiency. Together, these features of 20High TMS create a comprehensive solution that not only streamlines various aspects of supply chain operations but also significantly contributes to cost savings and enhances overall operational effectiveness.

Contribution refers to how each aspect of the supply chain adds value to the overall operation. Modern transportation management systems redefine the ‘CONTRIBUTE’ element in supply chain management by offering a comprehensive suite of features that address key challenges with practical solutions, adding significant value at every stage of the logistics process.

These solutions typically encompass auto order consolidation, optimizing load configurations through 3D load planning, intelligent carrier recommendation based on real-time data, continuous real-time in-transit visibility, automated freight audit, and customer-facing chatbots for seamless communication and updates.

By integrating these capabilities, transportation management systems streamline operations, improve efficiency, enhance visibility, and foster collaboration among all stakeholders.

In the landscape of modern supply chain management, advanced transportation management systems have emerged as transformative forces, automating and revolutionizing logistics operations. Staying ahead in this industry demands embracing innovation, and these cutting-edge transportation management systems are more than just tools – they are strategic partners. With unparalleled expertise and foresight, they navigate the complexities of logistics and transport management. Through automation, data-driven decision-making, and seamless connectivity, they empower businesses to mitigate risks, unlock growth and profitability opportunities, and gain a competitive edge in the ever-evolving supply chain management realm.

As the logistics industry continues to evolve, businesses can expect to see further advancements in TMS capabilities, such as enhanced predictive analytics, deeper integration with emerging technologies like the Internet of Things (IoT) and blockchain, and more sophisticated AI-powered optimization algorithms. Staying ahead of these trends and leveraging cutting-edge TMS solutions will be crucial for businesses to future-proof their supply chain operations and maintain a competitive advantage in an increasingly complex and dynamic global market.