Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Supply chain software has historically been split into discrete chunks, which meant users had to turn to a transportation management system (TMS) to solve one problem, a warehouse management system (WMS) for another, and an enterprise resource planning (ERP) program for an overview of it all.
These distinctions worked fine for years as the tradition-bound trucking, warehousing, and material handling industries caught up to the technology wave sweeping corporate America. But as the digital marketplace re-orders supply chain operations, it's evident that the siloed model is no longer up to the task.
TMS vendors have responded by tearing down the fences that used to separate trucking software from other logistics solutions. Today's TMS programs share overlapping databases with ERP, WMS, and warehouse execution systems as well as with fulfillment planning, order management, business intelligence, data analytics, and other specialized applications. Linking these isolated data fields can trim waste and create new profit, whether the user is a shipper, third-party logistics service provider (3PL), broker, truckload carrier, or other supply chain player.
The merger between TMS and its software siblings has been made possible by recent advances in two particular fields—cloud-based computing that allows for shared interoperable databases, and mobile application development that supports native apps built to take advantage of the unique capabilities of devices like tablets and smartphones.
OMNICHANNEL DISTRIBUTION CHANGES THE GAME
One of the main forces driving the change in transportation management systems is omnichannel retailing, which is pushing users to demand higher performance from their transportation management systems and increasing the execution pressure on fulfillment operations, said Fab Brasca, vice president for global solution strategy and intelligent fulfillment at Scottsdale, Ariz.-based developer JDA Software Group Inc.
In response, developers are moving away from treating those diverse software applications as independent silos of information because the isolated data can lead to bottlenecks and latency in decision-making—an unforgiveable sin at a time when companies need to be able to respond swiftly to any disruption in the supply chain.
"A customer could say, 'I've already got WMS, TMS, and order management software. Isn't my supply chain efficient enough?' And we answer that it may have been efficient enough when all you were doing was pushing inventory to your stores. But with this change to omnichannel, it's not just about store fulfillment and online fulfillment, but about overall consumer fulfillment," Brasca said.
Companies increasingly operate in a marketplace where complex global problems affect not just transportation but also omnichannel distribution, retail, and manufacturing operations. To tackle those challenges, software must feature interoperability between transportation and warehousing, both in sharing transactional flows and in merging the two worlds with optimization logic.
A "warehouse-aware" TMS application can help users to eliminate common bottlenecks—for instance, by allowing them to revise dock schedules to better coordinate inbound and outbound traffic, said Brasca.
Another advantage a networked TMS offers over standard transportation management systems is the ability to host a link to mobile computing platforms, giving users more visibility into shipments in transit than is allowed by current technology, such as daily updates generated through electronic data interchange (EDI). In comparison, a TMS linked to a location-enabled smartphone could use signals from a global positioning system (GPS) receiver to provide real-time updates that give users better connectivity with carriers and let them find quick solutions to capacity constraints.
GOING MOBILE
Adding mobile capabilities to a TMS can do much more than simply allow users to do a better job of tracking deliveries and monitoring schedules. For example, it is easier to track a load if the TMS can accommodate "geofences," which, when incorporated into software programs, enable users to receive alerts when a truck crosses predefined geographic boundaries as measured by an app on the driver's smartphone.
"With an automated location-enabled device, you could be notified if the truck is ahead of schedule or behind," said Bill Ashburn, chief marketing officer at HighJump Software Inc. "You would know he's arrived, because he broke the geofence and he's no longer moving. So now you know he's at the DC."
That location-enabled TMS extension could also allow a company to automatically track information relating to fuel taxes, driving logs, and hours of service, sparing drivers the task of keeping detailed records and reporting them to the dispatcher once a day.
The transition from daily updates to real-time connectivity will produce big results, but it may take time to reach all levels of the shipping industry.
"Transportation is a very generational business," Ashburn said. "The millennials come in and they're more savvy with technology. The generation (before) them is wowed by real-time data."
Mobile TMS apps can do far more than generate truck schedules, Ashburn said. A driver with a TMS app on his smartphone could take photos of damaged cargo, record vehicle inspections at checkpoints, or scan images of documents such as a bill of lading. In some cases, a mobile-enabled TMS could even generate additional profit for users.
"Now, you can see if there's a vehicle here and a load available over there. Let's connect the dots and reduce deadhead miles," Ashburn said. "If you don't have it, you're at an extreme competitive disadvantage."
GREAT EXPECTATIONS
Shippers and their customers are raising their expectations for real-time TMS performance as they become aware of these abilities, said Chris Parker, chief operating officer of InMotion Global Inc., a TMS provider in Brandon, Fla.
"Today's logistics professionals are much more sophisticated than they were 10 years ago," Parker said in a press release. "They are used to one-stop online services, with access from any location and on any device."
TMS use has more than tripled since 2005, according to a July 2015 survey conducted for the company. The same survey showed 54 percent of logistics professionals use some sort of TMS software today, compared with just 15 percent 10 years ago.
Logistics companies are flocking to transportation management systems to address the issues that keep fleets from operating at maximum efficiency, particularly those related to drivers' schedules and delays that all-too-commonly occur at the junction between the warehouse and the truck.
Those pain points are among the top causes of wasted driving hours and lost freight-carrying capacity, according to a recent white paper from J.B. Hunt Transport Inc., a multimodal transportation logistics company based in Lowell, Ark.
Delays in transportation can cost freight carriers dearly because of the Department of Transportation's strict limits on truck drivers' hours of service, the report says.
Current regulations limit commercial motor vehicle drivers to an "on duty" day of 840 consecutive minutes (or 14 hours), which quickly shrinks to 660 minutes (or 11 hours) after subtracting mandated safety inspections and a required 30-minute break within the first eight hours.
Because the hours-of-service countdown logs all minutes consecutively, drivers can't simply stop the clock during traffic jams or warehouse delays. J.B. Hunt goes on to list a range of additional time-wasters, such as waiting around for freight to be loaded or unloaded, detention and dwell time caused by inflexible pickup and delivery times, and unscheduled variation in shipment schedules.
The common thread to most of these time-wasters is that they occur at the point where the truck meets the distribution center. That means a TMS app with access to warehouse data could help users avoid logjams by identifying time-consuming activities and devising a more efficient route.
By smoothing out those bumps in the road, a connected TMS application could add valuable minutes to every driver's day and boost the number of shipments passing through each warehouse.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."
Supply chain risk analytics company Everstream Analytics has launched a product that can quantify the impact of leading climate indicators and project how identified risk will impact customer supply chains.
Expanding upon the weather and climate intelligence Everstream already provides, the new “Climate Risk Scores” tool enables clients to apply eight climate indicator risk projection scores to their facilities and supplier locations to forecast future climate risk and support business continuity.
The tool leverages data from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) to project scores to varying locations using those eight category indicators: tropical cyclone, river flood, sea level rise, heat, fire weather, cold, drought and precipitation.
The Climate Risk Scores capability provides indicator risk projections for key natural disaster and weather risks into 2040, 2050 and 2100, offering several forecast scenarios at each juncture. The proactive planning tool can apply these insights to an organization’s systems via APIs, to directly incorporate climate projections and risk severity levels into your action systems for smarter decisions. Climate Risk scores offer insights into how these new operations may be affected, allowing organizations to make informed decisions and mitigate risks proactively.
“As temperatures and extreme weather events around the world continue to rise, businesses can no longer ignore the impact of climate change on their operations and suppliers,” Jon Davis, Chief Meteorologist at Everstream Analytics, said in a release. “We’ve consulted with the world’s largest brands on the top risk indicators impacting their operations, and we’re thrilled to bring this industry-first capability into Explore to automate access for all our clients. With pathways ranging from low to high impact, this capability further enables organizations to grasp the full spectrum of potential outcomes in real-time, make informed decisions and proactively mitigate risks.”