Thinking of Transportation Management as a Competitive Weapon Is a Game-Changer

Effective transportation management has never been as essential as it is right now in today’s e-commerce-focused world. Companies that get this right can optimize their freight and parcel shipments, enhance their customer service, and raise their profile throughout the supply chain.

A recent survey that was carried out among logistics service providers and shippers in various industries across a range of geographical areas found that the top performers are implementing transportation management strategies successfully and using the right technologies to give themselves an edge over the competition.

The Right Frame of Mind

The survey, which was carried out by the Georgia Center of Innovation for Logistics, DC Velocity, and Descartes Systems Group, found that a business’s growth and financial success was strongly tied to the value it placed on transportation. Indeed, more than nine out of ten respondents who said they saw transportation as a “competitive weapon” were considered either industry-leading or better than average in terms of their financial performance.

On the other hand, those firms that saw transportation management as more of a “necessary evil” or just a basic necessity fell behind in performance as well as growth. It was not the amount of money the firms spent on transportation that affected their growth, Descartes Marketing and Services Executive Vice President Chris Jones pointed out; it was the strategic value they placed on transportation that made all the difference.

The current challenges that transportation management are facing include driver capacity and optimizing last-mile service, and effective tactics and the right technologies for tackling these concerns are setting apart the winners from the losers. Top firms have found that delivery is every bit as important as the products themselves when it comes to being competitive; one only needs to look to the example of Amazon to see what an impact getting delivery right can have.

This blog post was based off of an article from Supply Chain Dive. View the original here.

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