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Five ways to optimise logistics with outsourced transport managed services


Johannesburg, 03 Oct 2018

Transport managed services (TMS) for enterprises offers the advantage of fully customised logistics planning solutions.

These solutions are based on advanced technology and processes developed to handle all aspects of transport and distribution operations, as well as fleet management.

The following considerations help improve, simplify, manage and effectively measure the transport and distribution of goods in the supply chain:

1. Efficient transport load and route planning

Optimised transport planning allows for better utilisation of vehicles and load distribution. It also ensures the system-driven transport routes are cost-focused and operationally viable.

Transport managed services assist with the swift implementation of rules and actions aligned with business objectives, for example, optimal routes, delivery frequency, minimum order quantity, warehouse picking, and loading bay requirements. It is this consistent application of operational expertise to the planning process that separates outsourced service provider

2. Real-time distribution tracking and execution management

Too often, an operational plan is generated that is not operationally feasible. The plan, therefore, fails dismally in execution, and the reasons for failure are not properly accounted for.

By integrating the planning process into the management of the delivery execution, a mature TMS provider can expedite the deliveries and ensure adherence to targeted delivery times and service levels. Deviations are logged in the system for future analysis that ensure the cause of the problem is rectified in time for the next planning cycle.

3. Third-party service provider (3PL) management

Logistics network performance relies on relationships with external suppliers and internal vendors, effective contract management, and better rate negotiations with transport partners.

Transport managed services facilitate the management of third-party service providers and associated activities by integrating all logistics role-players.

4. Continuous performance monitoring and analytics

Access to analytics and industry KPIs is essential in identifying critical operational constraints, mitigating potential risks, and assessing transport activities and associated costs.

Transport managed services deliver measurable value to enterprises through effective monitoring and reporting of all key variables affecting logistics networks.

5. Integrated supply chain management

Changes in the supply chain could impact performance or constrain potential optimisation in the transport and distribution network.

Transport managed services increase visibility and transparency across all related supply chain planning and operations through comprehensive system integration, resulting in substantial time and cost savings.

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Editorial contacts

Cheryl van der Merwe
Resolve SP
(012) 492 1001