JDA Software Outlines The Business Benefits Of Advanced Transportation Management Solutions

The challenges facing companies today are obvious and they dominate the headlines — rising fuel costs, weak economic conditions, pressure to deploy environmentally sound practices and shifting consumer demand. So what are best-in-class companies doing to combat the issues while keeping a tight budget in mind? A recent Gartner, Inc. report stated that demand for TMS solutions is driven by two primary needs: controlling costs and improving operational/logistics performance. Although performance and efficiency remain important business drivers, cost reduction, derived primarily through better planning of shipments, has become the principal motivation for evaluating and acquiring TMS1. David Johnston, senior vice president manufacturing and wholesale distribution at JDA Software, highlights below the most critical strategies these companies are putting into place:

• Rethink Your Globalization Strategy: For years outsourcing to China and India has been the most economic option for many companies. Rising fuel costs, longer lead times and eroding margins due to duties, taxes and unexpected transportation expenses are causing this trend to shift and forcing companies to look more closely at their sourcing and transportation plans. Strategic network design tools that can analyze the time, cost and risks involved in sourcing and transporting goods from various locations are allowing companies to more accurately evaluate their manufacturing and production plans. In many cases, fuel and other costs related to importing and exporting product have climbed so high that despite higher labor costs, manufacturing goods in the U.S. or Mexico is actually more cost-effective. For this reason, many are turning to "right-shoring" models that include a combination of on-, near- or off-shore options for manufacturing and assembly of products.



• Put Fleet Management into Practice: Breaking down the silos that traditionally exist across fleet and third-party carrier operations is critical to delivering a synchronized, enterprise-wide workflow for transportation management. By using a single platform to manage fleet along with multi-carrier and multi-modal transportation, there is a better balance of cost-reduction, asset utilization and customer service. A single monitoring and alerting environment across the entire enterprise enables full visibility and enhanced control so adjustments can be made as economic conditions and fuel prices fluctuate.



• Deploy Collaborative Transportation Management: Getting carriers more actively involved earlier on in the transaction process can ensure that front-end agreements, transportation forecasts, operational planning and transportation execution — including continuous moves — are all in line with consumer demand. This collaboration requires little in terms of capital investment, especially where a technology foundation is already in place. The primary investments are people and time. Companies must have the resources and the commitment to create a collaborative culture between parties. The results can mean better rates, greater carrier stability and relationships and optimized asset utilization.



• Drive Cost Savings and Green Operations with Optimization Strategies: Today's customers are no longer satisfied by having the goods they want in their hands — they also want to know they got there in the most environmentally friendly way possible. Consolidation and continuous movement tools that combine loads and schedule routes in sequential order ensure maximum use of each truckload. Not only does this save time and money by getting goods through the supply chain quickly, but it also creates a leaner and greener operation by reducing the number of trucks on our roads. By using route optimization solutions, companies can determine the most direct route and prevent idling and wasted fuel by taking into account such obstacles such as construction and difficult turns. Often it is the 'last mile' of getting goods to a destination that causes companies the most pain; navigating through city roads, for example, can be more efficient with a smaller truck. Tools that anticipate this pain-point and allocate the right vehicle to be ready at the right time – so the larger vehicle is not left idling – can speed the movement of goods through the supply chain while reducing carbon footprints.
  Opportunities to reduce costs don't end when a delivery is made, backhaul strategies while products are in transit can further maximize dollars while allowing companies to be more environmentally friendly. Additionally, since trucks are not always the most optimal route of transport, multi-modal support is needed to allow companies to evaluate all possible modes and determine the most cost-, time- and environmentally-effective option.



• Create True Visibility with Trading Partner Management: The key to managing a global supply chain is end-to-end visibility. Close communication and collaboration with factories, forwarders, logistics providers, brokers and other partners across multiple geographies and process touch points enables issues to be resolved with greater speed and agility. This visibility allows transportation and logistics managers to monitor shipments, make more informed decisions, resolve issues in-transit and identify opportunities for modal shifts, inventory diversion, direct-drop shipping and other cost-saving tactics.
  Advanced transportation planning and execution solutions provide the visibility and the agility necessary to survive in today's economic conditions. By driving efficiency throughout transportation and logistics processes, TMS solutions create a lean supply chain that can adapt quickly to factors such as rising fuel costs and turbulent economic conditions. In addition, TMS solutions pave the way toward overall cost control by streamlining freight management, shipment planning and route selection – making them an essential solution in any company's arsenal.

For more information on JDA's advanced transportation planning and execution solutions, including the JDA Transportation 7.5 release, please visit www.jda.com.

1 From the October 2008 Gartner, Inc. Report "Market Trends: Transportation Management Systems, Worldwide, 2007-2012"

About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results — fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry-leading solutions, leading manufacturers, distributors, retailers and services, companies around the world are growing their businesses with greater predictability and more profitably. For more information on JDA Software, visit www.jda.com or contact us at info@jda.com or call +1.800.479.7382.

SOURCE: JDA Software