Closed-loop transport management

Gaurav, Razat
November 2004
Logistics & Transport Focus;Nov2004, Vol. 6 Issue 9, p44
Trade Publication
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.


Related Articles

  • MANUFACTURING.  // Advanced Materials & Processes;Nov2004, Vol. 162 Issue 11, p107 

    Presents a study showing product costs that have troubled manufacturers both in the U.S. and worldwide. Argument over the need for U.S. companies to do a much better job of integrating cost analysis into product design; Advantages of redesigning products over outsourcing productions to other...


    The article offers information on the LSP/Carrier Assessment, a document developed by the Automotive Industry Action Group (AIAG) and Odette to help LSPs audit their performance against best practice. The document ranks logistics into classes from A to C, and produces a gap sheet that shows...

  • Streamline the supply chain with eight best practices. Johnson, Brent // Materials Management in Health Care;Apr2009, Vol. 18 Issue 4, p20 

    The article offers information on the eight best practices aimed at streamlining the supply chain of any organization in the U.S. It is vital that one should apply a tested scheme in one's business model because it ensures that the supply chain runs efficiently and effectively. The eight...

  • Inside storage and inventory control. Vitasek, Kate // Multichannel Merchant (Penton Media, Inc.);Oct2007, Vol. 3 Issue 10, p60 

    The article offers tips on enhancing distribution center storage and inventory control processes for companies involved in the multichannel business segment. In order to satisfy customers, many operations professionals focus on benchmarking and best practices as a way to implement improvement....

  • Editorial. Beckett, Simon // Journal of Business Continuity & Emergency Planning;Apr2008, Vol. 2 Issue 3, p212 

    The article highlights several topics related to business continuity and emergency management. It encourages industry professionals in the field who are interested in submitting articles based on the topics provided to be published in the journal. These topics include the standards of practice...

  • Supply Chain Collaboration. Mounkes, Paul // Circuits Assembly;Jul2004, Vol. 15 Issue 7, p30 

    Over the past several years, U.S. manufacturers have been developing strategies and techniques for supply chain collaboration in an effort to remain competitive in the face of increasing global competition. Supply chain collaboration is a sound, financially advantageous strategy/investment, but...

  • A MAP OF THE WORLD. Vinas, Tonya // Industry Week/IW;Sep2005, Vol. 254 Issue 9, p27 

    Discusses benchmarks for global manufacturers in procurement, new product development, supply chain planning and logistics set by the 2005 Value-Chain Survey, conducted by "Industry Week" editors and subject-matter experts within IBM Corp. in the U.S. Methodology used; Impact of globalization...

  • Automating the NERC CIP Compliance-Test Lab to Meet CIP Standards. Reynolds, Chuck; Henthorn-Iwane, Alex // ITEA Journal of Test & Evaluation;Dec2013, Vol. 34 Issue 4, p399 

    Electrical utilities and other industrial control entities must adhere to strict cyber security standards such as NERC CIP and many others. Compliance with these standards to ensure secure operation requires extensive and expensive, expertise, programming, control, and manipulation of many...

  • DOWN WITH BEST PRACTICES. Schultz, Don E. // Marketing News;12/30/2009, Vol. 43 Issue 20, p23 

    In this article the author discusses advertising firms that use best marketing practices that have worked for other companies who have faced particular situations. He is critical of using the best practices of other firms and suggests that each firm needs to use strategic thinking to find the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics