TITLE

Closed-loop transport management

AUTHOR(S)
Gaurav, Razat
PUB. DATE
November 2004
SOURCE
Logistics & Transport Focus;Nov2004, Vol. 6 Issue 9, p44
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article provides information on closed-loop transportation management (CLTM). CLTM is a solution approach that allows companies to manage all critical transportation processes in a synchronized way to achieve optimal cost and service performance. Based on industry best practices, it bridges the traditional gap between transportation planning and execution to enable companies to procure, plan, execute and monitor freight movements. Using a three-tiered approach, Table I outlines the evolution of key transportation management processes. Level I is the lowest level whereas Level 2 signifies the intermediary adoption of CLTM, and Level 3 is the best practice benchmark. At Level I, procurement and planning are decentralized and disconnected, so efforts may be duplicated or inefficient across the network. This stage is characterized by traditional silo planning, where business units and or distribution centers work in isolation. Execution and monitoring rely on manual processes, and there is limited visibility into the shipment lifecycle. Level 2 begins to add automation and improve communication between previously independent units. Rate negotiations are more centralized, and planning is somewhat more robust. When a company achieves Level 3 in multiple business functions, synergies result in greater efficiency, reduced costs and improved customer service. For example, deploying a merge-in-transit program requires integrated planning, execution and monitoring with multiple shipments that must be consolidated at a merge point for delivery as a single load to the customer. Successfully deploying such a best practice allows companies to reduce costs and improve customer service levels.
ACCESSION #
14897289

 

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