Digital solutions for my transport operations
On May 26, Jérôme Bour, President of DDS, and Geoffrey Thiery, Senior Supply Chain Consultant at Wavestone, both active members of the Lab Digital et Technologies, shared feedback and a wealth of information to guide companies in the digitization of their transport operations. As a reminder, all this data is available in a publication accessible to France Supply Chain members.
Participants were also able to ask questions to answer issues affecting their business, such as last-mile delivery orinterfacing with specific information systems.
The elements communicated at this event are based on the expertise of a whole range of speakers, from users (shippers, manufacturers and service providers) to practitioners and suppliers of digital solutions, as well as on the results of an internal survey of nearly 150 France Supply Chain member companies (manufacturers and distributors). The day's speakers addressed the following topics:
- Which system for which transport processes or issues (strategic, tactical, operational or execution)?
- A non-exhaustive look at the types of solutions and players on the market, via a radar.
- Implementation procedures for successful deployment.
The digitization of transport operations is a response to the growing complexity of supply chain management , and theacceleration of customerneeds and processes. To achieve this, we need access to data. Hence the following question:
How can transport be integrated into an increasingly complex and interwoven IT ecosystem?
Today, the technological side has been mastered thanks to fairly standardized APIs. It is now possible to integrate a whole range of building blocks and a mosaic of upstream and downstream, B-to-B, B-to-C and even last-mile solutions. So, the starting point of a digitalization project is really the flow, the business.
This webinar is a reminder that before starting out with a solution, it's essential to formalize and define your functional requirements, so that you can put out a more detailed call for tenders and obtain a quality tool, or even a pilot that will enable you to plan ahead.
What's the best strategy for successfully implementing a digital transport solution?
The success of your project also depends on your ability to get your partners on board. This is one of the most recurrent and complex obstacles to overcome. Our experts present the strategies to be implemented and the key factors for resolving this obstacle, in particular the possibility of developing the partnership between you, the shipper, and your carrier.
What gains can we expect?
Gains on the shipper's side are often very rapid, and have a significant impact on the overall cost of transport activities by reducing distances and smoothing out operations. Budget reductions of 3 to 10% are possible. In terms of major indirect gains, we would mention the increased respect for the customer's promise through improved service levels.
ROI generally less than one year
Finally, our specialists looked at how digital solutions can reduce CO2 emissions. By collecting and managing data, it is now possible to identify alternative means of transport (with a lower carbon footprint) or to optimize load rates. The digitization of transport is therefore an effective lever for tackling today's challenges.
To go even further with a higher level of detail, download the White Paper.
Answers to the questions asked at this conference:
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A free TMS? Does it exist?
Yes, the first free TMS loader has just been launched on the market.
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Do you have any idea of the percentage of FSC shipper members already equipped with a TMS?
In the 2022 survey, less than 25% of shippers (FSC members) said they had a TMS in place.
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New DMS solutions are arriving on the market, particularly for the 1st or last km. Do you include them in the same family as TMS?
Delivery management systems complement TMSs, to organize last-mile delivery operations, typically for a shipper with omnichannel flows.
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How much does a TMS cost?
Costs vary according to the scope of deployment and the functions implemented. The typical SaaS budget is 0 (free solutions) to 1% of the transport budget for execution functions, and 1 to 2% of the transport budget including optimization functions.
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How complicated is it to connect a TMS to the entire IT eco-system?
TMSs generally offer APIs or interfaces for information exchange with ERP, WMS and other systems. Connection is facilitated by the use of standards for message formats (e.g. EDIFACT) or transfer technologies (e.g. JSON).
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When we speak of a shipper, are we talking about the principal or the company physically loading the products, for example?
It's the client.
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We're talking about lead times and customer service, but isn't there also a tendency to deliver to customers more slowly (CO2 and CSR impacts)?
Some TMS allow you to compare several transport alternatives, according to criteria of cost, delivery time, quality of service and CO2 emissions. For a shipper wishing to reduce the carbon footprint of its deliveries, this type of function enables arbitration, and the choice of a less time-consuming delivery with lower CO2 emissions.
TO view the replay and discover the answers to the questions asked during this webinar
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