Transportation Management Systems: Trends and ROI

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Transportation Management Systems Trends and ROI

• NITL Conference
• November 11, 2004
• Jane Biddle

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The Headlines
Issues and Opportunities Creating Sense of
Urgency!
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Behind the Headlines

• 30,000 Intermediaries Around the Globe
• Point systems have evolved over time
• Reliant on paper, faxes, phone calls
• Many opportunities for failure
• Change Being Driven From Top Down
• Corporate leadership strategies
• Increased focus on supply chain execution
• Internet-based more affordable solutions

Challenge Leverage TMS Trends and Technology To
Accelerate Supply Chain Performance.
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A Vision for TMS Leadership
Customer HQ
Contract Manufacturer
Command and Control
Alert Notifications
Alert Notifications
Order Status
Order Status
Customer DC
Supplier
Customs Status
Order Status
Order Status
Order Status
Shipment Status
RemoteFacility
Shipment Status
Stock Levels
Stock Levels
Shipment Status
Retail
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Agenda

• A Vision for TMS Leadership
• Application Landscape
• Enabling Corporate Strategy
• Value Proposition

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Landscape Industry Perspective
Total Worldwide Trade 12.6T(WTO/2002)
Logistics Visibility Control 500M by 2008, 29
CAGR (ARC 2004)
Transportation Management Systems 1.2B by 2008
(ARC 2004)
Cost of U.S. Compliance Systems
Financial Settlement
Supply Chain Management 6.7B by 2008 CAGR 5
(AMR 2004)
15B (Stephens/2003)
2.6T 640B (_at_Global Trade)
Customs Clearance Cost 150B (Stephens/2003)
Total Worldwide Logistics Costs 1.5T (Cass/2002)
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Application Landscape High Level
Strategic
Planning Tactical
ERP
Execution
Plan
Make
Source
Deliver
.
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Application Landscape Detailed
Supply Chain Planning
TMS/GTM
Supply Chain Network
Import/Export Domestic International Contract
Price Book/Tender
Network Design
Forecasting Demand Planning
ATP Planning Optimization CPFR
Total Landed Cost
Fulfillment DC Delivery
Demand Mgmt Order Mgmt
ERP
RFQ/Quote Vendor Mgt Purchasing
CSI/Customs Door Delivery
CRM
Customer Service
BPM Finance
SRM
Supply Chain Inventory
Sourcing Catalog HTS Export
Track Trace
Production Planning Inventory Control Good Mfg
Practices Quality Reporting
Trade Content Regulations Contract
Mgmt Truck/Rail Air/Ocean
CAD Formulation
CAM Plant Maint
Financial Settlement
WIP Op Inst SCADA Labor Mgmt
PLM
MES
Business Rules Event Mgmt
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TMS Platform or Application?

• Option 1 Platform (Are Shippers Ready?)
• Business unit optimization gt SC optimization
• Departmental optimization gt Enterprise
  optimization
• Standardization - data, processes, metrics
• Option 2 Application (Are Vendors Ready?)
• ERP/SCM vendors moving out and down
• TMS players moving up and across
• 3PLs, Forwarders adopting Technology
• Convergence Is On The Horizon-

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Leverage IT Investments
"If you have built castles in the air, your work
need not be lost. That is where they should be.
Now put the foundation under them." - Henry
David Thoreau
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Packaged Applications
ERP
SAPSSAPeopleSoftOracle
SCP
4PLs
UPSFedExDHL
ManugisticsI2CAPS (SSA)
Domestic TMS
Global Visibility
G-LogRedPrairieDescartes
BridgePointLogNetGT Nexus
Compliance
WMS
VasteraNextLinxOpenHarbor
Manhattan HighJump (3M)Optum/Metasys
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Checklist Considerations

• Corporate Compatibility vs. Best of Breed
• Single Data Model AND Local Configurability
• Multi-Multi-Multi
• Product Road Map
• Purchase vs. On Demand
• Technology Integration Strategy
• Trade data and compliance reporting
• Supply chain inventory and assets
• Settlement and financial systems
• Role of 3PL Information Systems

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Agenda

• A Vision for TMS Leadership
• Application Landscape
• Enabling Corporate Strategy
• Value Proposition

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Corporate Leadership Strategies

• Lean Enterprise/Supply Chain
• Customer Driven Supply Network
• Competitive Advantage
• Price
• Quality
• Service

Even The Best Strategy Will Not Succeed Without
The Ability to Execute!
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Enable Corporate Strategy

• Be an Agent for Change
• Go where the action is - gain insight and support
  
• Recruit Colleagues and The Brass
• Political Campaign of your Career?
• Develop Business Case
• Tangible Top Line and Bottom Line
• Intangible Opportunity to Break Through
• Risk of Status Quo
• Name It Brand It Launch It
• Establish Metrics Reward Success

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Your Reality Déjà Vu?
Perhaps in time the so-called Dark Ages will be
thought of as including our own. Georg
Christoph Lictenberg (1742 - 1799)
Circa 1990mrp -gt ERP
Circa 2004tms -gt TMS
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Break Down The Barriers
Purchasing Sourcing
Import Compliance
Sales Service
Export Customs
Finance Regulatory
Traffic Departments

• Collaborative Execution
• Measurement Performance
• Extending Integration

• New Workflows
• Information Standards
• Centralized Planning

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Set Standards for Integration
ERP
ERP
Play a Leadership Role!
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Think Globally, Act Locally
Establish Metrics Enterprise Supply Chain Partners
Centralize Planning Inbound/Outbound All
Regions All Modes
Global Tiger Team Education
Tiger Teams Operations Systems Reporting
Tiger Teams Operations Systems Reporting
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Agenda

• A Vision for TMS Leadership
• Application Landscape
• Enabling Corporate Strategy
• Value Proposition

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AMR Value Proposition

• Companies that have connected their partners
  through collaborative execution practices have
  seen the following benefits
• Increase in the fill rate by 10
• Cost reduction of 5 (of revenue)
• Reduced planning execution cycle time by 15
• Reduction in inventory by 50 in a year
• Inventory obsolescence reduction by 80

Connecting Collaborative Planning to Execution
for ResultsAMR Vinay Asgekar, July 30, 2003
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Start With Quick Wins

• Automate Ordering/Pricing Processes
• Provide On-Line Visibility
• Eliminate Paper Handling
• Integrate TMS with ERP/Finance
• Link TMS to Compliance Systems
• Others?

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Establish Key Metrics

• Transportation
• Carrier Performance
• Asset Utilization
• Inbound/Outbound
• Compliance
• Document Management
• Reporting
• Audits

• Customer Satisfaction
• Order Accuracy
• Order/Invoice Cycle Time
• Performance
• Inventory
• Days of Supply
• Carrying Costs
• Warehousing Costs

• Collaboration
• Global Visibility
• EDI Connections

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Technology Expectations

• Tomorrow
• Full Transparency
• Increased Reliability
• Improved Flexibility
• Global Dashboards
• Competitive Advantage

• Today -
• Visibility
• Cost Savings
• Operational Efficiencies
• Reduced Risk of Non-Compliance
• Improved Customer Satisfaction

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• Jane Biddle
• Chatham, New Jersey
• 973-701-2557
• www.biddleassociates.com
• jane_at_biddleassociates.com