Managing a large global supply chain effectively is no small task. Disjointed facilities with little oversight can create all manner of problems. Without standardized processes across the organization, it’s all too easy for a regional facility to become siloed, approving premium freight costs at will, selecting carriers outside of contracted rates, and slowly but surely eating into the bottom line.
Without centralized controls and high visibility across the organization, spread out, siloed facilities can become a law unto themselves. Here’s how companies can create one shared version of the truth when it comes to spend by increasing visibility and control.
Controlling spend on premium services
Without easily enforcible standardized processes across the organization, regional facilities will keep operating in a vacuum. This causes them to make decisions which don’t benefit the company as a whole.
They approve unnecessary spend on expedited freight, increasing the company’s total freight spend and whittling down profit margins. They develop an over-reliance on spot quotes from non-contracted carriers. And leaders may not even realize it’s happening.
The trouble is, without a holistic view of the supply chain, it’s extremely difficult to gauge the true impact of those decisions—or to pinpoint which facilities have gone rogue.
Standardized processes ensure optimal practices. Deploying a robust, global transportation management system (TMS) allows companies to establish and automate these processes through a single web-based portal, ensuring localized compliance with premium services authorization guidelines. The system also helps track cost recovery, putting money back in the bottom line.
Boosting visibility for smarter decision-making
When operations span the globe, regional data can provide powerful competitive insights. But in order to harness them, companies need to have the right systems in place.
Total visibility is key. A centralized TMS allows decision-makers to gain perspective on the organization’s shipping behaviors at a global level. This not only allows them to deploy correction actions in localized problem areas, but to make vital strategic pivots that benefit the entire operation.
From streamlining vendor selection and rate negotiation to enabling freight costs to be allocated back to individual customers, the potential savings unlocked through greater visibility are subtantial.
Think globally, act locally
While it’s important to accommodate regional requirements, local facilities shouldn’t be calling the shots. That’s why a global company needs a truly global logistics partner to ensure accountability and control.
At CTSI-Global, we have locations around the world to make sure our customers can find localized support backed by a global perspective. With facilities in Ireland, Singapore, India, and across North America, we know regional regulations like the back of our hand. That wealth of expertise allows us to help the companies we partner with develop and implement processes at the global level that take regional requirements into account—without letting silos form or visibility slip.
When all arms of a global operation work in tandem, anything is possible. We’re here to facilitate that.
More visibility, higher control, greater profitability. Contact CTSI-Global today to make it happen.