5 Key Elements of Lean Transportation Management in Logistic
Do you think running your logistics and supply chain process offline will be profitable for you anymore?
Of course, they won’t.
With the evolution of advanced digital technologies, logistic businesses become more competitive and entrepreneurs become tech-savvy. To streamline and automate business operations, companies are using the Transportation Management Systems (TMS) that are based on Lean thinking.
Today, leaner versions of a traditional TMS help many logistics companies improve efficiency, speed, and scalability, in addition to lowering operating costs. With software-as-a-service (SaaS) becoming the norm for technological advancements in every field, your TMS may just need an overhaul!
What is Lean Transportation Management in Logistic?
A lean TMS is specialized software for transportation and logistics management, designed according to SaaS models. These contemporary systems combine various platforms and workflows into one easy-to-use solution, offering users easy access to the latest technology as well as ongoing improvements in the field.
Many lean TMS solutions are customizable, depending on the specific requirements of the client. They offer greater visibility and transparency across the transportation network, in addition to greater cost savings, centralized control, and real-time data management.
Lean TMS Solutions: 5 Major Components to Consider
While lean transportation may not seem very different from traditional software at first glance, there are some key components that set it apart from its “ancestors”. Like all SaaS solutions, there’s a greater focus on usability, flexibility, and scalability for transportation management software in the market today.
1. Process Discipline
For any logistic management strategy, transportation processes need to be planned, executed and monitored on an ongoing basis. With a focus on process discipline, infrastructure, technology, and personnel training solutions can be designed to help reduce waste and boost problem-solving capabilities. This is where a lean transportation management system differs from traditional systems.
2. Increased Transparency
Logistics companies may not be able to identify and visualize all flows across a transportation network on their own, but lean transportation management software is designed to enhance transparency. Modern systems are equipped to create and evaluate multiple scenarios, to improve the standardized reporting of major KPIs (key performance indicators) across the network.
3. Change Management
Depending on a company’s requirements, infrastructure, processes and goals, integrated transportation management may or may not be a core area of focus for them. Lean TMS solutions need to be adaptable to different scenarios, taking into account the availability of trained personnel, cost concerns, supply chain control, and monitoring needs, etc.
4. Better Connectivity
Transportation management systems are heavily dependent on data exchanged between external trading partners (suppliers, logistics service providers, carriers, etc.). With traditional solutions, network connectivity needs to be established and maintained by the firms using them, but lean TMS takes a majority of that burden on itself.
5. Constant Evolution
Lean transportation management systems are designed to evolve in line with new technological advancements across the supply chain. Whether it’s a new innovation in truck scales, industrial weighing systems, advanced freight auditing or shipping practices, etc., a lean TMS can adapt to changes in equipment, techniques, and processes.
There have been many innovations in transportation management over the last decade or so, and logistics trends have been quick to keep up with them. Companies looking to streamline their business processes could enjoy immense benefits from the latest technology, so perhaps it’s time for you to start exploring lean TMS solutions!
Credencys has proven experience and expertise to build a next-generation lean transportation management software by considering the custom business needs of the client. We have helped many logistics companies to automate their operations by offering them end-to-end mobile app development services. Considering lean thinking for the TMS, companies can stand out from the crowd as a strategic differentiator.
Frequently Asked Question Lean Transportation Management in Logistic
What are the key elements to manage the transport of goods?
There are five elements that has to be taken care of for the effective transportation of goods. 1) shipment management for the real-time visibility of transportation 2) multi-model shipment for optimized carrier selection and planning 3) freight accounting to mitigate the financial risk 4) rule-based management and automation & 5) communication and collaboration with trading partners and stakeholders.
What are the five major components of logistics?
The logistics domain contains several elements for the effective transportation of goods. However, if we consider highly essential components, then they are transportation, customer services, inventory management, information processing, and production planning. Rest of the componants are demand forecasting, packaging, purchasing, facility location and more.
What are the basic elements of logistics?
The key elements of the logistics support system are personnel, training, equipment design, PHST (packaging, handling, storing, transportation), facilities, supplies, maintenance, computer resources, support equipment, and more.
What are the logistics management activities?
While considering logistics management, you have to manage varies activities such as warehousing, outbound & inbound transportation management, order fulfillment, fleet management, inventory control, demand/supply planning, material handling, logistics network design, and more.