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Building a Business Case for TMS: How to Develop a Compelling Argument That Drives Investment

Adopting a robust transportation management system (TMS) is one of the best ways for companies to take their logistics operations to the next level. But in order to secure investment, supply chain managers first need to gain buy-in from their leaders—making it essential to build a strong business case.

To complicate things, managers may be required to pitch various stakeholders across the business and convince them that a TMS is a crucial tool. Since different departments will have varying priorities, tailoring the pitch to each stakeholder’s specific needs and interests is important here. Luckily, there are three core pillars that most arguments will be built around: it’s only the details that you’ll need to adjust.

To help you make a strong argument for why a TMS is not only a worthwhile but a vital investment, here are the foundations your business case should be built on.

Reduced transportation costs

A robust TMS can help shippers slash transportation costs in multiple ways. First, the system can automatically determine the optimal carrier and route for each shipment in a fraction of the amount of time it would have taken an employee to source and compare the information necessary to do the same. This also ensures that every team member is able to optimize shipment planning, regardless of tribal knowledge or pre-existing relationships with carriers that could easily be lost if an employee decides to leave.

Second, a TMS makes it easier to source and compare spot quotes—which is useful at the best of times and essential during economic downturns when carriers may no longer offer or honor contractual pricing. By utilizing a TMS to automate the spot quote process, shippers can source a larger pool of quotes in less time and encourage carriers to bid more competitively, helping to drive costs down.

Third, a TMS makes capacity issues a thing of the past. Where shippers might once have struggled to find capacity among the dozen or so carriers they relied on, forcing them to use more expensive options to get freight out on time, a TMS enables them to bring more carriers into the process. This is especially true with Honeybee TMS™, CTSI-Global’s proprietary system, which empowers shippers to tap into our 20,020-strong network of trusted, pre-vetted carriers to find the capacity they need, at the right rate.

Honeybee TMS’s load optimization algorithm also allows companies to fully utilize each trailer and container (or take advantage of less-than-truckload shipping options), which can further bring costs down. Poor planning can result in shippers paying for more space on the truck than they really need—but with Honeybee TMS, that won’t be a problem.

Improved processes

As budgets tighten and pressures increase, many supply chain managers are being asked to do a lot more with far fewer resources. A TMS makes this possible by allowing teams to harness the power of automation.

With the system handling everyday tasks, employees can manage by exception, only stepping in when the TMS flags a potential issue—freeing them up to focus on more tactical initiatives and big-picture strategy. And by automating processes that would often require extensive manual effort, the potential for human error is greatly reduced.

A TMS also allows leaders to put certain rules and validations in place at the corporate level. This is especially valuable for companies with multiple locations since leaders can standardize shipping processes across the board—preventing any facilities from acting in a bubble. In doing so, they can easily mitigate risk and prevent unruly spending while still retaining enough flexibility to allow adjustments at the regional level.

Increased visibility

Without a TMS, monitoring shipments with any degree of accuracy is virtually impossible. By investing in a TMS, shippers can rely on in-transit tracking tools to quickly identify shipments that have run into trouble, allowing them to deploy contingency plans and save client relationships. The system also enables shippers to evaluate carrier performance on a regular basis, giving them the information they need to make smarter decisions when it comes time to renew a contract or renegotiate a rate.

A TMS also provides robust reporting capabilities that allow shippers to gain a clear and nuanced view of the supply chain from end to end. Supply chain managers can assess their key performance indicators (KPIs) at a glance or drill down for more granular information—helping them pinpoint cost-saving opportunities and areas for improvement.

Another benefit: data is a powerful tool that can inform future decision-making. Predictive analytics can help shippers improve their forecasting—and get ready for what’s to come.

Build a business case that leaders can’t refuse

Crafting a compelling business case can be tricky—but you don’t have to do it alone.

At CTSI-Global, we regularly work with supply chain professionals to help them communicate the wide-reaching benefits of a TMS. We built Honeybee TMS™ from the ground up, so we know it through and through—and we’re here to help you achieve the buy-in you need to discover its benefits for yourself.

Open leaders’ eyes to the true value a TMS can bring. Contact us today.

How Logistics Management Can Be the Key to Optimizing Your Inbound and Outbound Shipping Strategy

In today’s global marketplace, the supply chain is the engine that keeps organizations moving forward. That means your company’s success hinges on your ability to efficiently direct inbound and outbound freight while keeping costs to a minimum. With so much on the line, supply chain managers are left wondering what they can do to optimize their approach—leading many to turn to logistics management services to handle some or all aspects of their end-to-end shipping operation.

What are the benefits of outsourced logistics management?

Managing both an inbound and outbound transportation strategy effectively involves keeping a lot of plates in the air—and if one drops, all can come crashing down. Short on time and resources, many organizations leave some of those plates in precarious positions. But without hiring more staff or finding more hours in the day, it can feel like there’s no other option.

Outsourced logistics management services can be the answer, augmenting a company’s existing team and taking over the responsibility of keeping a few (or all) of those plates spinning smoothly. Here are a few ways logistics management can help you optimize both your inbound and outbound transportation strategy—without breaking a sweat.

Increase visibility. Transparency is a critical component of any successful logistics operation. But effectively monitoring inbound and outbound shipping processes, especially at a global scale, can require a vast amount of resources and expertise. Outsourced logistics management solutions provide shippers with the extra manpower, cutting-edge technology, and business intelligence needed to create a 365-degree view of the supply chain. From real-time shipment tracking to on-the-ground data, shippers can gain complete visibility into their operations, helping them identify further opportunities for improvement and savings.
Improve capacity and efficiency. Finding reliable, affordable carriers in a pinch can be a challenge, often leaving staff picking up the phone and engaging in lengthy email chains to find the right quote—or sacrificing quality to save money, leaving customer satisfaction on the line. By outsourcing carrier management, with the provider taking on the responsibility of vetting and coordinating carriers, shippers can feel confident that shipments are being sent with the best carriers for the best price, every time. And by engaging them to manage your transportation management system (TMS) as well, you can hand over all the time-consuming tasks involved in shipment planning and execution—putting hours back in your team’s day.
Prepare for scalable growth. Human capital is every business’s most valuable investment. It’s also one of the most expensive. Expanding your operational capacity can seem impossible without hiring a few new faces, but bringing new members on board can quickly start to add up—even before you consider costs like onboarding or employee training. Rather than hire and train new team members or waste precious time on repetitive tasks, shippers can make better use of their internal resources by outsourcing the most complex or time-intensive components of supply chain management. Outsourced transportation management offers a simple, cost-effective way to augment your staff and take the day-to-day of logistics management off your plate—so you can focus on making sure your organization is ready to compete on a global stage.

Ultimately, outsourced logistics management services help shippers optimize their transportation strategy and bring costs down. With a leaner staff, optimal carrier selection process, and more insight into your data, you can run a tighter ship—and protect your bottom line.

Is it time to tap logistics management services?

In 2020, shipping costs climbed significantly—a trend that likely won’t slow down any time soon. Businesses that wish to remain competitive on both the regional and global scale must seek new ways to boost productivity and cut costs at every step in the supply chain, making now the perfect moment to explore outsourced solutions.

With a 60+ year track record of providing best-in-class logistics solutions, CTSI-Global is more than just a provider—we’re a partner. Our expert logistics management services are available as an end-to-end solution or as customizable bundles to suit your specific needs. Learn more about how our client-centered, consultative approach to supply chain management can help you take your business to the next level by reaching out to our team today.

Why International Shippers Need a Unified TMS

When shippers have outposts around the world, they need technology that enables them to work seamlessly across various languages, cultures, and time zones. Any breakdown in communication can be costly—so why do so many global companies still use a different transportation management system (TMS) to manage their logistics operations in each region?

More and more, shippers are recognizing that having disparate systems and processes for each region results in unnecessary barriers, burdens, and silos that hinder growth. In a recent study, Gartner found that while it’s still common for companies to work with different vendors in different regions, many larger, more mature shippers are starting to pivot to a single TMS across their entire organization—and reaping the benefits.

If you’re on the fence, here are a few reasons to consider transitioning to a unified TMS.

More visibility, less confusion

When shippers don’t use a unified TMS, it’s difficult to accurately evaluate how each region is performing in the context of the organization as a whole. Is one facility spending far more than another? Are there bottlenecks leaders aren’t aware of? And even if they have a system in place to gather the data that their different systems produce, a number of factors can impact leaders’ ability to see the big picture, from outdated information to incompatible formats.

Implementing a unified TMS eliminates this ambiguity and creates total clarity. By bringing all their domestic and global data under one roof, shippers can dissolve regional data silos, achieve a bird’s-eye view of their operations, and gain more control over the entire supply chain. This allows for better, more informed, and more strategic decision-making that isn’t limited in scope—opening up greater possibilities for global expansion and growth.

Greater standardization, fewer rogue players

Another benefit of utilizing a single system across all regions is the ability to implement standardized processes and controls—thereby increasing corporate governance and reducing rogue decision-making and spending.

Without standardization, different locations may act in a bubble, doing what they believe is best (or most convenient) for their own facility. With a unified TMS in place, all facilities will operate under one shared version of the truth, ensuring that every location acts in the best interests of the organization as a whole.

Of course, every country has different regulations, customs, and quirks that impact the shipping process, so some flexibility is necessary. Look for a system that can be configured to enable this kind of regional flexibility, empowering supply chain managers to optimize their local operations without causing leaders to lose control at the global level. The right TMS will also trigger alerts or additional approval processes when one facility attempts to deviate from an agreed-upon path, ensuring that key stakeholders across the business have visibility into what different regions are doing and can step in where needed.

A TMS designed to facilitate global growth

Disparate systems might have worked for a while, but as your organization continues to grow, it’s time to adopt a system that can support your global operations—and help them thrive.

At CTSI-Global, we built our own proprietary TMS, Honeybee TMS™, to support shippers at both the regional and global levels. Honeybee TMS™ makes it easy for local teams to plan and execute inbound and outbound transportation while giving leaders at all levels more visibility, better control, and the ability to unlock greater cost savings.

We understand the needs of global companies because our network is global. With offices in North America, Europe, and Asia, we’re well versed in the regional regulations and nuances required to keep international supply chains ticking. And since our network spans multiple time zones, you’ll always find support whenever you need it—wherever you’re located.

Make your global supply chain more efficient, cost-effective, and easier to manage. Contact us today.

Hidden Costs in Retail Logistics: The True Damage Caused by Damaged Freight

Retail logistics managers are tasked with keeping costs under control—but that’s easier said than done when there are costs they just can’t see. From small, incremental charges that gradually eat away at the bottom line to the avoidable loss of major customers, there are many areas where supply chain managers could be saving money, if only they could see them.

In the first of a two-part series on hidden costs in the retail supply chain, let’s explore the true cost of damaged freight. Here’s why this area is such a large blind spot for many shippers—and what you can do to minimize the costs.

Damaged goods—and relationships

Damaged shipments cost shippers thousands of dollars every year. But while replacing goods and offering refunds and discounts stings, it’s all the other costs associated with in-transit damage that shippers should really be worried about—because many fly under the radar.

For one, there are additional labor costs that should be factored in. Navigating claims forms takes time, as does dealing with unhappy customers calling to find out why their shipment never arrived. Shippers may also have to pay to store the damaged goods until they can be inspected. If the damage is severe, they may then have to pay for disposal.

Perhaps the biggest cost that many supply chain managers don’t factor in, however, is the potential long-term damage to customer loyalty. A replacement is all well and good, but the new shipment might not arrive until days after the client expected to receive their goods, which could have a knock-on effect on their own customers and reputation—especially if the goods were intended for a holiday shopping event, hot-ticket item release, or other brand-critical initiatives. Discovering this only when it’s too late to deploy contingency plans is likely to sour your clients’ impression of your company—and greatly reduce the chances that they’ll order from you again.

So, what can shippers do to minimize the hidden costs of damaged shipments?

A proactive response trumps a reactive one every time

Carrier reliability is one factor that contributes to shipments arriving safely and on time, so it’s important for shippers to carefully vet their carriers and recognize that the lowest rate doesn’t always amount to the lowest overall cost. If a carrier is cheap but doesn’t take care of your freight, requiring you to send an angry customer a replacement at a premium freight rate, then it wasn’t really cheap at all.

Unfortunately, some damage can’t be prevented, no matter how good a carrier’s safety record is or how careful and diligent they are. That’s why visibility and communication are critical. If something goes awry when a shipment is in transit, it’s essential that supply chain managers know about it as soon as possible, allowing them to take proactive steps to salvage the customer relationship and get replacement goods out the door in good time. In some cases, they may even be able to line up a replacement that will arrive only hours after the original order was expected to arrive, keeping problems for the customer to a minimum.

A leading-edge transportation management system (TMS) makes this possible, providing real-time event management and shipment tracking information that allows managers to rapidly identify problems and get to work deploying solutions. After receiving an alert about an in-transit shipment, staff can call customers immediately to let them know what happened and what they’re doing to rectify the problem—impressing them with superior customer service, rather than leaving them confused and frustrated at the loading dock when the shipment doesn’t arrive.

Eliminate hidden costs in your retail logistics operation

Damaged freight can do a lot more damage to your bottom line than you might realize—if you let it.

Honeybee TMS™, CTSI-Global’s proprietary transportation management system, can help retail logistics managers streamline their operations and bring costs down. Quickly identify the best and most reliable carriers for every shipment, keep track of your freight with superior pre-shipment, post-shipment, and in-transit visibility, and deploy contingency plans in no time with a solution designed to boost efficiency and cost-effectiveness every step of the way.

Discover what all the buzz is about. Learn more about Honeybee TMS™ by contacting us today.

Hidden Retail Logistics Costs: The Unwanted Expense of Unexpected Freight Fees

Retail logistics managers sometimes have a thankless job. With logistics written off as a cost center by many leaders, logistics managers are already facing an uphill struggle to be recognized for the strategic work they do to keep this vital function running smoothly. The last thing they need, then, is hidden costs whittling away at the bottom line and undermining their ability to keep expenses in check.

In the second of our two-part series on hidden retail logistics costs, let’s explore the true impact of unexpected freight fees—and what supply chain managers can do about them.

Misclassification: A common and costly mistake

Misclassification of freight is a common problem in the retail logistics world—and one that has bigger ramifications than many realize.

Although retail logistics managers and their teams rely on National Motor Freight Classification (NMFTA) guidelines or other regional standards when planning shipments, mistakes do happen. And if a shipper isn’t paying close attention to their invoices, they may not realize that they’re repeatedly misclassifying a certain type of freight—causing their shipping costs to far exceed their estimates time and time again and making budgeting almost impossible.

Re-measuring and re-weighing freight also creates extra work on the carrier’s part, which may result in them charging an additional fee. If this happens enough times, they may decide to sever the relationship with the shipper to save themselves the trouble—which can be a devastating blow if the carrier was cost-effective and reliable.

And it gets worse. For international shippers, improperly classified freight can result in penalties, lengthy delays at the border, and even goods being rejected and sent back. This can have a significant impact on customer satisfaction—and in the case of perishable freight, could result in costly waste.

Taking the time to understand freight classification standards is critical, especially when entering a new market that may have different rules. For shippers lacking experience in a particular region, international consulting services can make a huge difference, ensuring freight is always correctly classed, labeled, and accompanied by the proper paperwork to streamline its journey through customs.

It’s also worth investing in freight audit and payment solutions that scrutinize every invoice and can help you identify repeat problems. That way, if one type of freight is repeatedly being misclassified, your team can evaluate what’s going wrong and fix the problem—before it gets out of hand.

Accessorial charges: The holes that sink the ship

Another critical reason to invest in freight audit solutions is to minimize the impact of accessorial charges.

These extra fees might not look like a lot on their own, but when they’re added to dozens or even hundreds of invoices, they quickly add up. While some shippers are aware that they’ll be charged accessorial fees on certain shipments and work this into their budget, many don’t realize these fees are coming—especially if they’re charged erroneously. And if shippers don’t audit their freight bills regularly, identifying these additional costs can be tricky, leaving logistics managers tearing their hair out wondering why their freight costs are always so much higher than anticipated.

If you’re allowing invoices to be processed without oversight, you may be throwing thousands of dollars out the window. World-class freight audit solutions allow logistics managers to not only recover the cost of unwarranted accessorial fees and other incorrect charges that appear on the invoice but also to gain a more accurate picture of their actual freight spend, improving forecasting. The insights derived from regular auditing can also help managers to identify carriers who repeatedly overcharge, allowing them to have proactive conversations or find alternative options.

Freight audit: A goldmine of retail logistics savings

CTSI-Global’s cutting-edge freight audit and payment solutions shine a light on hidden costs—putting money back in shippers’ pockets and helping supply chain managers see exactly where they can trim expenses.

Never miss an opportunity to save. Contact us today.