Technology and Logistics Essay Example | Topics and Well Written Essays - 750 words

Technology and Logistics - Essay Example In the IT landscape of an organization, a TMS usually â€Å"sits† between the order processing system and the warehouse management system of an ERP. Ideally, TMS should include both the inbound as well as outbound orders. Load Consolidation: Organizations can reduce their transportation costs by consolidating on various considerations such as routing, delivery date, capacity, customer preferences etc. This will help in reduction of both billable as well as payable freight costs. Route Planning and Scheduling: This enables an organization to find out the most efficient and cost-effective route plan. Using this functionality, an organization can assign orders and customers to routes, move orders and customers between routes, rearrange route sequences, establish balanced zones and territories, and pool equipment and driver resources according to established business rules. Freight Audit and Payment: A TMS allows calculation of full bottom-line freight costs and evaluation of rating and service options. This enables a supply chain manager to improve its freight audit accuracy. Generally, a TMS is integrated with ERP and other Financial systems of the organization to give a complete picture throughout all the departments of the organization Freight Procurement: This feature of a TMS helps organizations to manage the various types of bidding processes such as incremental bidding, multi-round bidding and expressive bidding. It facilitates online bidding from 3PLs Multi-modal Transportation: A TMS also allows an organization to choose between various modes of transportation including ocean, rail, air, road, barrage and ferry etc. and arrive at the best combination of modes to increase efficiency. Shipment Tracking and Trace: This feature allows customers as well as managers to track their consignment online. The almost real time accurate tracking enables efficient sharing of relevant