Transportation is the largest logistics cost component, a critical customer touch point, and significantly impacts a company’s ability to provide superior inventory control and customer service. Interestingly, for many organizations it remains largely a manual process, with many individual decision makers, old practices and crude management controls.
We believe that companies looking to take cost out of the supply chain should examine transportation management. If transportation has not been seriously evaluated or re-bid recently, our studies show that clients typically find 2% - 8% transportation savings after sufficient due diligence.
Our transportation management services are designed to identify and capture those savings, and include:
Our Transportation Practice Assessment service utilizes our proprietary transportation practices database to review and compare a client’s transportation process with relevant industry best practices, and to identify key gaps in practices or technology that are needed to improve performance. Our studies continually show that not only are actual practices less advanced than many perceive, successful adoption of only a few advanced practices can lead to significant improvement.
Utilizing our Procurement services, clients obtain new freight rates by conducting a freight bid, using optimization technology to analyze a wide range of cost versus service objectives. Our proven process involves every critical step of an effective procurement process, including development of a comprehensive RFP, carrier training, scenario analysis and review, and developing results to assist in final bid negotiations. Our post-bid audit assessment is a unique offering, provided to all procurement clients to analyze bid results after implementation, identifying adherence to bid results and improving carrier relationship management effectiveness.
Our Fleet Modeling service utilizes optimization technology to analyze current fleet operations and identify potential savings opportunities through improved lane assignments, improved backhaul performance, or changes in delivery frequency. Supply chain flows are constantly changing, resulting in continuous opportunities to optimize fleet patterns. This service is particularly effective for fleets that have not been optimized within the last three years, typically revealing savings opportunities of between 6% - 16%.
TMS Technology Assessment and Implementation Assistance services are provided for organizations that are interested in understanding how advanced technology can improve transportation performance. Typically, the service includes a transportation technology assessment, based on a structured methodology that compares current technology capability with transportation requirements, resulting in an analysis of critical gaps and recommendations. This is often followed with systems selection assistance and implementation support.
3PL Selection Assistance — JSC professionals are highly experienced in assessing whether a third party logistics (3PL) organization should be considered for transportation or distribution functions. Our approach includes a highly structured process to simulate in-house vs. 3PL costs, RFI & RFP development, and proposal analysis & recommendations.