1. Audit<\/strong>
\nData is always an issue. Shippers and 3PLs often struggle to build\u00a0a single data set of their transportation costs. Implementing a\u00a0comprehensive audit, across all modes, geographies, currencies\u00a0and languages, can achieve this data set. Audit is no longer just\u00a0payables; it is about carrier and regulatory compliance and\u00a0identifying savings opportunities upstream in the sourcing,\u00a0planning and execution areas.<\/p>\n

2. Assess<\/strong>
\nWith clean, usable data (from audit or otherwise compiled),\u00a0opportunities can be assessed with the knowledge of where the\u00a0money really is. The assessment focuses on value created\u00a0by and for stakeholders, process and integration strengths\u00a0and weaknesses, as well as relevant application use and\u00a0where you should be investing time and money on solutions.<\/p>\n

3. Design<\/strong>
\nrelevant service providers (carriers and systems), integration requirements and a documented return on investment (ROI) that\u00a0even a CFO could love. This often involves modeling, a proof of\u00a0concept or other detail supporting ROI estimation.<\/p>\n

4. Source<\/strong>
\nWith a solution designed and determined, it\u2019s time to source it. This often involves a strategic carrier sourcing effort with\u00a0carriers or 3PLs but could also mean sourcing a transportation\u00a0management system (TMS) or at least better using an already\u00a0licensed one. For example, if the solution design determined that\u00a0better inbound purchase order (PO) management had a higher\u00a0ROI than re-negotiating outbound truckload pricing, then TMS\u00a0improvement likely makes sense.<\/p>\n

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Plummeting software and integration\u00a0<\/strong>costs, converging business models,\u00a0<\/strong><\/span>e-commerce and speed-to-market all\u00a0<\/strong>influence the right transportation\u00a0<\/strong>strategy and operating model differently\u00a0<\/strong><\/span>for each company….so challenge your\u00a0<\/strong><\/span>current state<\/span>.<\/strong><\/span><\/p>\n

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5. Implement<\/strong>
\nOnce provider(s) are selected, it is time to implement.\u00a0Implementation is where the payoff is created in the real world.\u00a0methodology and project plan, and a problem-solving and stick-to-it\u00a0attitude. Implementing a new system versus upgrading\u00a0a current one has very different risk vs. reward equations,\u00a0depending on the situation. This might sound obvious, but\u00a0balancing ROI with implementation resistance is critical as people\u00a0can be very proud of the bad process they created and own.<\/p>\n

6.Operate<\/strong>
\nDuring implementation, groundwork should have been laid to operate a Lean and successful transportation operation, including\u00a0working external providers to the extent that there is some\u00a0process outsourcing, which is increasingly typical. Regardless\u00a0of what entity operates which process, robust and frequent\u00a0reporting to measure success is crucial. Ongoing updates to\u00a0standard operation procedures (SOPs) help keep process owners\u00a0critiquing what they do while training them on skills to advance\u00a0within the organization. Keep challenging the organization on
\nwhat functions should be housed centrally, in a control tower or\u00a0center of excellence, versus pushed out to the physical location or closer to the customer. As companies evolve, so do operations. As\u00a0a result, a nimble operation is a long-lasting one.<\/p>\n

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These six steps offer a successful path to follow in the real world.\u00a0While some companies may be able to skip one or two steps\u00a0because of their strength in that area, the steps work. So, for\u00a0example, a company with clean transportation spend data from\u00a0an enterprise resource planning (ERP) system or TMS may be\u00a0able to skip audit. Or a company that knows its top initiatives\u00a0from clients and the value of them may be able to jump right into\u00a0solution design. Other times executives or managers take on a\u00a0new role where a system or carrier strategy has already been put in place, and they must quickly assess how to move forward given\u00a0those existing system or carrier strategies.<\/p>\n

During each of these steps, the leadership and project teams\u00a0should be asking, \u201cwhat can we insource or outsource?\u201d \u201cWhat\u00a0can we centralize or decentralize?\u201d Plummeting software and\u00a0integration costs, converging business models, e-commerce and\u00a0speed-to-market all influence the right transportation strategy\u00a0and operating model differently for each company\u2026 so challenge\u00a0your current state! Transportation improvement is achievable in\u00a0the real world of budgets and cost\/service pressures.<\/p>\n

.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Originally published by\u00a0Logistics Management In this white paper, you will learn about six steps that allow shippers and 3PLs to improve transportation operations and increase supply chain value in the most ideal way possible.   Improving Transportation in the Real World It’s rare that a shipper or\u00a0third-party logistics (3PL)\u00a0provider has the luxury to sit back…<\/p>\n","protected":false},"author":7,"featured_media":8642,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[61,80,47,64],"tags":[],"_links":{"self":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/11104"}],"collection":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/comments?post=11104"}],"version-history":[{"count":2,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/11104\/revisions"}],"predecessor-version":[{"id":11107,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/posts\/11104\/revisions\/11107"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/media\/8642"}],"wp:attachment":[{"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/media?parent=11104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/categories?post=11104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moovafrica.com\/news\/wp-json\/wp\/v2\/tags?post=11104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}