Logistics directors must face the challenge of improving transport costs without affecting the level of service. Hundreds of deliveries must be carried out every day and a continuous increase in efficiency in transportation planning is required along with more visibility and transparency in the supply chain. In this VUCA (Volatile, Uncertain, Complex, Ambiguous) market, traditional Transportation Management System (TMS) software is no longer enough to support decisions and daily operations.
E-commerce is rapidly growing, as well as offering new shopping experiences such as augmented reality or purchases without checkout. Promotions, festivities, Black Friday, and even the weather, can significantly influence sales, therefore, in order to support the business, the supply chain must be more and more data-driven, predictive, and collaborative.
In this scenario, what opportunities can an Advanced TMS offer?
Centralized planning does not mean only having a single office physically located in the same building, but above all, it means taking the synergies of transport throughout the supply chain. The ability to do multi-load, merge-in-transit, and the possibility of combining pick up from suppliers (backhauling optimization) means a significant reduction of empty KM with consequent reduction of Co2 and transport costs.
Many retailers have static delivery routes every day, even in case of volume fluctuation, in most of the cases saturation in Retail never exceeds 90%. The alternative is to plan the daily delivery routes dynamically, providing digital communication to all involved actors, DCs, shops, carriers, and drivers in real time.
Connectivity and collaboration
Efficient communication is essential for a simplified process. The carrier can receive via Web the trips assigned to them, enter the information requested by the DC (e.g.: plate number, driver’s name) that can be easily seen and checked by the gatekeeper for check-in. The PoS must be able to check on the Web the details of the shipments, the estimated time of arrival, and in case of delays, to be informed in real-time by SMS or e-mail.
Visibility and transparency in the last mile via Mobile App
To improve performance and productivity, the driver can be equipped with a smartphone that allows them to send (even automatically) the hesitations on the status of delivery, photos and Proof of Delivery. All the details can be displayed on a dashboard with full visibility on the last mile.
Big Data and Analytics
The accuracy of the planning can be continually improved through the analysis of the data, not only for the prediction of the demand, but also for the prediction of events that impact on the estimated time of delivery, for example, available slot or unexpected delays at unloading.
The ORTEC Advanced TMS is a tested solution, used daily in several sectors by market leaders, such as Walmart, Carrefour, Tesco, Coca-Cola, P&G, Kraft, Arla etc. ORTEC Routing and Dispatch proved to be the most suitable choice for them, by integrating the planning and execution of transport operations into one unique environment.