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Overview (Continued)

Transportation management has a strategic role in driving supply chain excellence. Cognizant of this, most companies are actively reevaluating their transportation management processes, organizational structure and technology.

Achieving transportation management excellence mandates automation. Case-in-point, companies with superior on-time delivery performances are more likely to tender and receive shipment data electronically.

Phalanx™ improves access to transportation information. Additionally, Phalanx™ enhances shipment aggregation and mode shifting; thereby reducing freight spend. The rise in accessorial charges and fuel surcharges have rendered static routing guides obsolete as they result in costly shipments. The implementation of Phalanx™ generates significant freight cost savings as it supports shipment-level optimization and factors variables such as accessorials and fuel surcharges.

Another benefit of Phalanx™ is that it expands shipment-level visibility and generates exception reports and alerts. Access to selective views of information may be granted to customers and/or business partners via web portals.

The Need for Improvement

Why are organizations concerned with transportation management? While rising freight rates, higher fuel costs and capacity constraints may be the most obvious drivers, companies are increasingly aware of the cost and service impact of transportation on the overall supply chain performance as well as the requirement of internal and external customer demands for accurate shipment statuses and transportation cost information. This information is crucial for making better execution and strategic decisions throughout sales, purchasing, manufacturing, logistics and finance operations.

Logistics Departments are gaining new success by transforming themselves from tactically oriented traffic departments to full partners in supply chain strategy decisions. Unlike other transportation management technologies which are department level shipping systems, Phalanx™ plays an invaluable role in disseminating crucial information across the entire supply chain.

Poor shipment visibility not only impacts the supply chain but also creates uncertainty in financing aspects. Improving shipment visibility and transportation management often has a strong impact not just on transportation costs but on working capital optimization such as being able to reduce inventory holding requirements because of shorter and more accurate lead times.

Best-in-Class Practices

Best-in-Class companies utilize notably different processes than their peers: