Transportation
Management
Systems:
Trends and ROI
NITL Conference
November 11, 2004
Jane Biddle
The Headlines…
Issues and Opportunities
Creating Sense of Urgency!
Behind the Headlines…
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30,000 Intermediaries Around the Globe:
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•
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Point systems have evolved over time
Reliant on paper, faxes, phone calls
Many ‘opportunities for failure’
Change Being Driven From Top Down:
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Corporate leadership strategies
Increased focus on supply chain execution
Internet-based & more affordable solutions
Challenge: Leverage TMS Trends
and Technology To Accelerate
Supply Chain Performance.
A Vision for TMS Leadership
Contract
Manufacturer
Supplier
Alert
Notifications
Command
and
Control
Customer HQ
Alert
Notifications
Order
Status
Order
Status
Customer DC
Customs
Status
Order
Status
Order
Status
Order
Status
Remote
Facility
Shipment
Status
Stock
Levels
Shipment
Status
Shipment
Status
Stock
Levels
Retail
Agenda
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A Vision for TMS Leadership
Application Landscape
Enabling Corporate Strategy
Value Proposition
Landscape – Industry Perspective
Total Worldwide Trade $12.6T(WTO/2002)
Cost of U.S. Trade
Security
Improvements
Cost of U.S.
Compliance
Systems
$15B
(Stephens/2003)
Customs
Clearance Cost
$150B
(Stephens/2003)
$83B (ARC)
Transportation
Management
Systems $1.2B by
2008 (ARC 2004)
Supply Chain Management
$6.7B by 2008 – CAGR 5%
(AMR 2004)
Logistics Visibility
& Control $500M
by 2008, 29%
CAGR (ARC 2004)
Financial
Settlement
$2.6T+ $640B
(@Global
Trade)
Total Worldwide Logistics Costs $1.5T (Cass/2002)
Tactical
ERP
Execution
Planning
Strategic
Application Landscape: High Level
Plan
Make
Source
Deliver
Application Landscape: Detailed
Network
Design
Supply Chain
PlanningDemand Planning
Forecasting
Planning
Optimization
Demand Mgmt
Order Mgmt
SRM
Sourcing
Catalog
HTS
Export
RFQ/Quote
Vendor Mgt
Purchasing
CAD
Formulation
PLM
ERP
TMS/GTM
ATP
CPFR
Fulfillment
DC Delivery
BPM & Finance
Supply Chain Inventory
CAM
Plant
Maint
Production Planning
Inventory Control
Good Mfg Practices
Quality Reporting
WIP
Op Inst
SCADA
Labor Mgmt
MES
Supply
Chain
Network
Total
Landed
Cost
Customer
Service
Import/Export
Domestic
International
Contract Price
Book/Tender
CSI/Customs
Door Delivery
Track &
Trace
Trade Content
Regulations
Financial
Contract Mgmt
Settlement Truck/Rail
Air/Ocean
Business Rules
Event Mgmt
CRM
TMS: Platform or Application?
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Option #1: Platform (Are Shippers Ready?)
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Business unit optimization –> SC optimization
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Departmental optimization –> Enterprise optimization

Standardization - data, processes, metrics
Option #2: Application (Are Vendors Ready?)
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ERP/SCM vendors moving ‘out and down’
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TMS players moving ‘up and across’

3PLs, Forwarders adopting Technology
Convergence Is On The Horizon-
Leverage IT Investments
"If you have built castles in the air, your work
need not be lost. That is where they should be.
Now put the foundation under them."
- Henry David Thoreau
Packaged Applications
ERP
SAP
SSA
PeopleSoft
Oracle
4PLs
SCP
UPS
FedEx
DHL
Manugistics
I2
CAPS (SSA)
Domestic
TMS
WMS
Manhattan
HighJump (3M)
Optum/Metasys
G-Log
RedPrairie
Descartes
Global
Visibility
BridgePoint
LogNet
GT Nexus
Compliance
Vastera
NextLinx
OpenHarbor
Checklist Considerations

Corporate Compatibility vs. Best of Breed

Single Data Model AND Local Configurability

Multi-Multi-Multi
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Product Road Map

Purchase vs. On Demand

Technology Integration Strategy:
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Trade data and compliance reporting
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Supply chain inventory and assets

Settlement and financial systems
Role of 3PL Information Systems
Agenda
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A Vision for TMS Leadership
Application Landscape
Enabling Corporate Strategy
Value Proposition
Corporate Leadership Strategies
 Lean Enterprise/Supply Chain
 Customer Driven Supply Network
 Competitive Advantage
 Price
 Quality
 Service
Even The Best Strategy Will
Not Succeed Without
The Ability to Execute!
Enable Corporate Strategy
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Be an Agent for Change:
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•
•
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Develop Business Case:
•
•
•
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Go where the action is - gain insight and support
Recruit Colleagues and ‘The Brass’
Political Campaign of your Career?
Tangible: ‘Top Line’ and ‘Bottom Line’
Intangible: Opportunity to ‘Break Through’
Risk of Status Quo
Name It – Brand It – Launch It
Establish Metrics & Reward Success
Your Reality – Déjà Vu?
“Perhaps in time the so-called Dark Ages will
be thought of as including our own.”
Georg Christoph Lictenberg (1742 - 1799)
Circa 1990
mrp -> ERP
Circa 2004
tms -> TMS
Break Down The Barriers
Purchasing
Sourcing
Finance
Regulatory
Export
Customs
Purchase Order
Import
Traffic
Compliance Departments
HTS
Denied
Parties
Sales
Service
Commercial Invoice
Match & Pay
Bills of Lading
 New Workflows
 Information Standards
 Centralized Planning
Import Documentation
 Collaborative Execution
 Measurement Performance
 Extending Integration
Set Standards for Integration
ERP
ERP
Play a Leadership Role!
Think Globally, Act Locally
Establish Metrics
Enterprise
Supply Chain
Partners
Centralize Planning
Inbound/Outbound
All Regions
All Modes
Global Tiger Team:
Education
Tiger Teams:
Operations
Systems
Reporting
Tiger Teams:
Operations
Systems
Reporting
Agenda
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A Vision for TMS Leadership
Application Landscape
Enabling Corporate Strategy
Value Proposition
AMR Value Proposition
“Companies that have connected their partners through
collaborative execution practices have seen the
following benefits:
 Increase in the fill rate by 10%
 Cost reduction of 5% (of revenue)
 Reduced planning & execution cycle time by 15%
 Reduction in inventory by 50% in a year
 Inventory obsolescence reduction by 80%”
“Connecting Collaborative Planning to Execution for Results”
AMR Vinay Asgekar, July 30, 2003
Start With ’Quick Wins’
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Automate Ordering/Pricing Processes
Provide On-Line Visibility
Eliminate Paper Handling
Integrate TMS with ERP/Finance
Link TMS to Compliance Systems
Others?
Establish Key Metrics
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Customer Satisfaction
•
•
•
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Order Accuracy
Order/Invoice Cycle Time
Performance
Inventory
•
•
•
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Days of Supply
Carrying Costs
Warehousing Costs
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Transportation
Carrier Performance
Asset Utilization
Inbound/Outbound
Compliance
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Document Management
Reporting
Audits
Collaboration
•
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Global Visibility
EDI Connections
Technology Expectations
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Tomorrow –
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Today 
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Full Transparency
Increased Reliability
Improved Flexibility
Global Dashboards
Competitive Advantage
Visibility

Cost Savings

Operational Efficiencies
Reduced Risk of Non-Compliance
Improved Customer Satisfaction
Jane Biddle
Chatham, New Jersey
973-701-2557
www.biddleassociates.com
jane@biddleassociates.com