The PERFECT REASON to Implement Supply Chain Logistics IT Solutions Today

If ever there was a perfect time to engage a logistics IT solution like TMS, Optimizer or Yard Management tool, it is now.  The current windfall shippers are experiencing thanks to the depressed cost of fuel is the perfect reason to strike now if your organization has ever toyed with the idea of improving supply chain management with a SaaS software solution.   Learn why making this modest investment today will pay dividends for years to come.

We all know that preventative measures save us from costlier consequences down the road.  And we know that beyond the heavy lift of implementation is a world of improved efficiency, notable cost savings and improved business operations via logistics IT solutions.  Let’s look at some of the ways investing in logistics IT today will pay off the next time fuel prices surge.

Associated Press reports that the US has so much crude they’re running out of places to store it.  The recent modest upturn in diesel prices notwithstanding, prices today are lower by $1.08 per gallon than at this same time last year according to Transport Topics.  Invest a portion of these fuel savings into logistics IT solutions and you’ll drive cost savings on overall transportation spend through efficiency improvements in the following eight areas:

Savings Category Projected Savings Range
Routing Effectiveness Up to 2% savings
Load Building Utilization Up to 3% savings
Mode Selection Up to 2% savings
Use of Preferred Carriers Up to 2% savings
Intelligent Procurement Up to 2% savings
Freight Payment Accuracy Up to 2% savings
Collaborative Communication Up to 1% savings
Business Intelligence Up to 2% savings
Potential Total Savings on Annual Spend Up to 16% savings

_______________________________________________________________________________________________________________

Don’t wait until the pain of the next economic shock and fuel price spike to bemoan your inability to take steps toward improving transportation management.  Do it now while the extra capital is available.

_______________________________________________________________________________________________________________

Enabling visibility in these eight critical areas helps shippers understand the drivers of cost overruns and helps ferret out inefficiencies throughout the logistics portion of the supply chain.  Whether it is finding more fuel efficient routes and modes, identifying best and worst performing carriers, ensuring accurate freight charges or improving communications among all stakeholders in transportation, these tools help organizations save costs and avoid needless or redundant expenses.  You don’t have to take our word for it either.  The savings range projections referenced above were derived from research performed by ARC Group and Inbound Logistics magazine.  That data was the basis of an interactive ROI calculator showing users how much they can save by implementing TMS and optimization tools.

Imagine how useful it would be to have information like that shown in the image below sent to your inbox daily, weekly or monthly. TMS Financial Summary

In this example note how the line haul cost and fuel cost broken out separately.  Ask yourself, “Can I get this breakdown between line haul and fuel cost manually?”  Without a solid solution in place, transportation departments only get a look at this kind of metric at the end of the 30 day reporting period.  Understanding what portion of increased transportation spend was the result of rising fuel costs versus other cost drivers in real time is critical to taking the most appropriate action to optimize spend and achieve the greatest value for every dollar spent on transportation.

Don’t wait until the pain of the next economic shock and fuel price spike to bemoan your inability to take steps toward improving transportation management.  Do it now while the extra capital is available.  It will pay dividends when the inevitable pain returns and your logistics IT-driven supply chain efficiency will insulate your operations from budgetary pressures!

See_How_Quickly_Box2

Call Now to Schedule A Demo (800) 731-7512

 

Leave a Reply

Your email address will not be published. Required fields are marked *