Riding the Tide: Operational Agility as Your Secret Weapon in Logistics

In the unpredictable seas of global logistics, the ability to quickly adjust your sails can be the difference between staying afloat or sinking. Carving out a flexible, agile transport procurement strategy is more critical than ever. This is where operational agility comes into play. With the global freight volume expected to reach a staggering 92.1 billion tons by 2024, the need for a flexible, agile transport procurement strategy is more crucial than ever.

As a next-gen supply chain leader, you're well aware of the challenges that come with managing a complex supply chain. You've likely navigated through the stormy waters of freight delays, the whirlpools of unexpected issues at customs, and the tidal waves of disruptions that these issues can cause. But what if I told you there's a way to not just survive these challenges, but to thrive amidst them? Cue the Transport Management System (TMS).

The Value of Operational Agility

In the past few years, we've seen a series of black swan events that have disrupted supply chains worldwide. From the COVID-19 pandemic to the Suez Canal blockage, these unexpected events have underscored the importance of operational agility.

Operational agility is the capacity to adapt to unexpected problems. It not only helps you avoid potential losses but also unlocks new strategic possibilities for how your company operates. A TMS can provide the necessary scaffolding upon which to build a far more flexible, agile transport procurement strategy. This is not inherent in the system, of course; it is simply a strategic possibility that the right TMS will facilitate.

The Limitations of Traditional Strategies

Many companies rely on a handful of suppliers to keep their transportation logistics under control. But this approach reduces agility and leaves you more vulnerable to sudden price shocks or black swan events. The sheer complexity of transportation logistics often leads companies to this strategy, but it's a strategy that comes with its own set of risks.

A TMS can help remedy this, providing a centralized system that simplifies data and gives you a single view of your freight. This allows you to analyze the end-to-end transport process and make sense of the complex web of logistics. With this level of understanding, you can make more effective decisions, leading to more efficient and cost-effective operations.

The Role of a TMS in Facilitating Agility

There are several limiting factors when it comes to operational agility in transportation logistics. Transport compliance is generally complex and time-consuming, which is why switching providers is not always straightforward. It can also be difficult to get accurate and honest market comparisons, which makes switching tricky.

The right TMS that includes procurement modules will have built-in compliance and be totally provider agnostic. This will ensure any changes you make to your freight sourcing strategy are 100% safe and based on objective analysis of the market. The automation that a TMS provides not only saves your team time - it leads to fewer errors, happier workers, and more efficient overall systems.

The Importance of Built-In Compliance and Provider Neutrality

In the world of transportation logistics, compliance is king. Whether it's adhering to international shipping regulations or meeting industry-specific standards, compliance is a critical aspect of any logistics operation. A TMS with built-in compliance features can help ensure that your operations are always up to code, reducing the risk of costly fines and penalties.

Provider neutrality is another crucial feature of a robust TMS. This means that the system doesn't favor any particular provider, allowing you to choose the best provider for your specific needs. This level of flexibility can be a game-changer, enabling you to adapt your strategy as market conditions change.

The Power of Automation and Time Saving

From filling in order forms to manually navigating suppliers, transportation can take up a huge amount of time and effort. These tasks are often boring and highly repetitive, leading to human error, lowered productivity, and decreased employee morale.

A TMS can automate these tasks, reducing the time spent on them by up to 80%. This not only leads to fewer errors and happier workers but also frees up time for your team to focus on strategic tasks. Imagine what your team could achieve with the extra time saved by TMS-driven automation!

The Financial Hurdles and the Solution

Traditional TMS often require you to sign a long-term license fee, prior to having actual seen the real-ting in a live environment for your business needs. This slows down the process of getting budget and approvals without a real business case. However, modern logistics software solutions can be deployed in a plug-and-play and modular fashion, significantly lowering financial adoption hurdles.

In the ever-changing landscape of transportation logistics, operational agility is not just a nice-to-have, it's a must-have. A robust TMS can provide the necessary tools to navigate the complexities of the industry, ensuring compliance, provider neutrality, and improved customer and partner relationships.

As a supply chain and logistic leader, investing in a TMS is not just about improving operational efficiency, it's about unlocking new strategic possibilities for your company. So, set your sails and navigate the waves of the logistics industry with confidence and agility.

Keen to learn more about #GetShipDone with TMS? Download our Buyer’s Guide here.