Transportation management is a key element of logistics management, the key focus of which is on revenue generation and customer satisfaction. The three key goals of any transportation management strategy are to reduce cost, minimize time, and increase profit. Even though transportation management is a highly elaborated part of the supply chain, it can be better understood by dividing it into the following key processes that constitute it-
- Generating a prospective report- The first step that needs to be undertaken in the process of transportation management is planning major aspects such as transport costs, routes to be followed, number of stops on each route, vehicle load, carrier selection, service quality, lead time, etc. You can make use of a transport management system to deduce the cost that shall be incurred by adopting different strategies in terms of these aspects. At the end of this step, you should generate a report of the final prospective schemes to be followed, and the cost that is expected to be involved in the process.
- Up-to-the-minute customer communication- A key feature of an efficient transport management system is the ability to track on-road merchandise within seconds. If a customer wishes to know the status of his delivery, being able to provide an accurate answer without wasting any time can give you a significant competitive advantage. Making use of cutting-edge GPS navigation systems to track vehicles makes this a fully automated process. In addition to this, customer communication also includes sending alerts of transport delays, and viewing and acting upon customer feedback.
- Detailed post-implementation analysis- Undertaking a follow up of the transportation strategies adopted by your business is just as important as doing the initial groundwork is. Once you have put your initial plan to action, you must generate a detailed report of how the process actually worked. Was everything executed as per the plan, or did any unexpected issues arise in the field? Looking into these details can help you to further tweak your transport management strategies, finally arriving at a dynamic plan that optimizes cost, time, and efficiency.
With transportation being one of the most essential parts of logistics, managing your company’s transportation services efficiently will not just improve customer satisfaction, but will also significantly cut down on the cost incurred during transportation. The money thus saved can then be invested in other revenue-generating areas of your business for a higher ROI.
McLane Logistics Technology provides reliable and customized transportation management software and transportation management systems to give your business an edge over competition. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.
