TMS Without A Network
The holiday season is over. As a parent, the worst thing that you can get is the ‘Batteries not Included’ sign on the box. This for me, from a logistics management perspective, is like having a TMS system without a network. Your TMS will be like having a great toy, which can do an awful lot. It will be the envy of your peers, partners, and competitors. However, if you do not have TMS connectivity to your supply chain network, there is not enough to fully power it and drive its greatest value potential.
So what do I mean by the power of the network? Why is this the thing that keeps your TMS drumming longer and better than the rivals? The key word is normally ‘collaboration’. However, being perfectly honest with you in the logistics space, where the shipper is generally king, it is less collaboration and more like dictators from a benevolent monarchy. The person you want to collaborate with is your customer, not necessarily your Logistics Service Provider (LSP). What you want from a LSP is fast, accurate responses to your needs. Your needs should reflect the needs of your customers and the extended supply chain. Good TMS systems in conjunction with; no-touch ordering, a process driven ERP system, and an ’outside-in’ philosophy will support the collaboration that is desired with your customers. What it needs to do this in an optimal manner is data from all of your LSPs, all of the time. It should also not just be from the top half dozen carriers who you can afford to do a point-to-point EDI with; it should be with all of them. You should also be able to change LSPs during your annual contract negotiations with the confidence that they will be able to communicate into your TMS from day one of the new contract. You also need to know that you can expand into new areas, without having to worry about how they will be able to communicate with you.
What I am discussing above is the power of a network based solution provider, but however powerful that is, it misses some key elements. There are a number of companies that can help connect to a network, but they will struggle to do it in the way your company really needs because;
They may not have the process industry knowledge. They may have a basis in other industry segments (Food, CPG, Automotive) so they are basing their solutions on only part of the needs.
They may not have provisions across all areas of transportation. There are good solutions for Ocean, or Rail, or Road, but increasingly as the supply network increases you need to be able to manage multi-modal communications globally.
They do not understand the requirements and in some ways the philosophy of your TMS provider, because they are just an integration provider. So you will take the responsibility for the process integration and will keep taking responsibility for each upgrade and update of the solution.
They may not have the understanding of the end partners. They are focused on the logistics, but do not have the understanding that the outbound logistics process is driven by the order from your customer, or the inbound logistics process is driven from the MRP run.
With a ‘Batteries Included’ sign on your TMS toy box, you get a powerful network, linked with end-to-end supply chain knowledge, and a Professional Services organization that understands the business process across the whole of the value chain. Not just one small piece in the middle. Your Professional Services resources will be working to standard methodologies, with optimum tool sets, driven from thousands of projects over many years and many clients.
People + tools + methodology + solutions + network = the batteries needed to fully power your TMS system.
