Ever increasing customer
expectations, supply chain becoming more and more complex driven by
globalization, increased volatility and shrinking margins have put much higher
pressure on managing your shipping costs and time. This, when combines with
shortages of drivers, trucks, railcars, ocean slots, ports and escalating fuel
costs, becomes a nightmare for a supply chain executive.
A lot of organizations have
already embraced technology to get better visibility into their transportation
budget and operations. It has helped them in keeping the transportation costs
checked and manage consolidation & globalization of outsourcing suppliers.
But, the question I raised in one of the recent discussions at a supply chain
forum, that how far software alone can help you in this regard? Is the software
enough to take out of all operational issues or you will need to transform the
practices also in your organizations to reach the goal? Of course, there are no
prizes for guessing that both the approaches are required but what should take
precedence? Can there be strategy around this?

After spending 3 months and
consuming lot of organization’s resources and money, the consulting company
gave the same recommendations and sales team had to change the process in such
a way that they will cancel the orders which are actually cancelled by
customers and rest of the orders which are not fulfilled even after 2 months,
will be cancelled by ERP itself. The results after this change were humungous.
Within 4 months, the on-time deliveries were improved by 14%, they were able to
reduce number of planners by 20% and allocated them to other areas, cost per
tonne got reduced between 10 – 15% and host of other non-tangible benefits were
achieved. The software is same but a small tweak in process became a game
changer for them.
It may not be the case with all
of us but the point that came out of this story was software alone can do
nothing – it will only provide you capabilities to do certain automations and
bring visibility but ensuring that input going to the software is as good as
the software, will bring the desired change.
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