Effective supply chain management can provide a competitive edge and help build a positive reputation for companies in any industry. Companies that ensure supply continuity and optimal functioning all along the supply chain are better able to satisfy the demands of their customers.
But the simple act of linking existing enterprise resource planning (ERP), warehouse management systems (WMS), and transportation management systems (TMS) is not the same thing as developing an integrated system that effectively orchestrates supply chain activity. Performance of every organization within a supply chain influences important parameters like lead time as well as the quality of services delivered. Therefore, effectively orchestrating and managing a service delivery chain is necessary to effectively integrate actions throughout the supply chain.
What Orchestration of the Supply Chain does
Supply chain orchestration combines centralized control over a supply chain with coordination of the information systems involved. Think of how a great orchestra functions. With a talented conductor directing, all the individual actions of the players in the orchestra come together to produce something greater than the sum of its parts.
Orchestrating a supply chain requires technological integration and exchange of information along the supply chain. With effective supply chain orchestration, each party in a supply chain can perform optimally, reducing lead times and ensuring that everyone is apprised of critical supply chain functions. The software you choose to orchestrate your supply chain should include components that address common supply chain problems.
Supply chain problems
Lack of coordination across the transportation process is one such a problem. It costs more and makes customer satisfaction more challenging.
The solution for this lies in Transport Management System Software. When your supply chain management makes use of integrated TMS software, you can streamline transportation processes across multiple carriers. Your TMS software can:
• Determine steps required to execute orders received
• Consolidate orders and select optimal carriers
• Capture status updates from carriers
• Capture rate models to allow for invoice matching and billing
When TMS software is integrated into your supply chain management software, you can reduce costs and increase operational quality, which will make customers happy. A perfect example of how this works is described in our case study of DSV company.
The challenge of logistic service provider DSV
DSV is a global supplier of transport and logistics solutions, having offices in more than 70 countries and an international network of partners and agents, making them a truly global player The effective, professional solutions provided by the company's 22,000 employees enabled DSV to record a worldwide revenue of 6.1 billion euro for 2013. With such a big operation the issue of freight settlement is important and urgent. According to DSV it used to be a huge job to check all the invoices, and sometimes it didn’t even get done at all.
The Solution of MPO
The MPO Supply Chain Suite contains all the rates agreed with carriers, which enables DSV to match the invoices it receives against the transport orders fully automatically. DSV also uses the MPO SCS software for its own invoicing process. Whether they want to be billed per kilo, loading meter or ton kilometer, all their customers receive a clear, consolidated invoice. In addition, they can continually compare carriers’ performance against their service level agreements.
Now DSV is a hundred percent sure that they never pay too much to subcontractors. They also gained a much better insight into the cost and profit of their transport activities for customers. Their logistics service levels have become measurable and transparent at a customer level.
If you want to develop a Customer Centric Supply Chain in which you can combine customer intimacy and operational excellence at the same time, we are happy to help you. And the best part of it is that we will help you obtain new clients thanks to our solution. Want to know more? Please download our DSV case study and learn from their experience and how it can benefit your company!