Shippers see need to upgrade technology for managing transportation
There is widespread concern by shippers that their current technology for managing transportation will not meet future needs.
That is one of the conclusions of a study of 173 manufacturers, distributors and retailers by the Aberdeen Group of Boston.
“Transportation management is moving out of the shadows and into a strategic role in driving supply chain excellence,” the report says. “In recognition of this, most companies are actively reevaluating their transportation management processes, organizational structure, and technology.”
The report contends that companies that are “best in class in transportation management have been able to decrease their total freight budget over the past two years (discounting changes in sales volume)” and that by comparison, 82 percent of all respondents saw their freight costs stagnate or increase.
Other key findings by the study:
* Domestic outbound transportation no longer dominates the transportation agenda. Inbound freight and international shipments are gaining focus.
* Four times more firms are planning to adopt commercial transportation management applications than build systems in-house.
* Nine out of 10 companies are concerned that their current transportation technology will not meet their future needs.
* The share of respondents providing other departments with online transportation cost and status information has jumped to 54 percent from 31 percent in Aberdeen’s 2004 study.
* “Best in class” companies are twice as likely to do daily scorecarding of transportation performance and share tactical capacity forecasts with carriers; they also control a greater share of inbound freight.
Sponsors of the study include Agistix, Hitachi Consulting, JDA Software Group, LeanLogistics, MercuryGate International and Sterling Commerce.