TMS is driving forward

A research survey released earlier this month shows just how important transportation management has become. The survey, conducted by InMotion Global (the folks behind the AscendTMS transportation management system), reveals that the use of TMS has more than tripled in the last 10 years.

The report details that 54 percent of logistics professionals currently use transportation management software in some way. InMotion Global says that is up from only 15 percent in 2005. And to show further how TMS is growing, the research also explains that of the remaining 46 percent not currently using a TMS, more than half say that they expect to use transportation management software within the next 12 to 24 months.

 Among other findings taken from the report: 

• The two most common reasons for not using a TMS are cost (43%) and complexity (32%).
• Trucking companies were most likely to use a TMS if they had more than 20 trucks in service (89%). For those with under 10 trucks, the percent using a TMS falls to just 31%. For those with under 5 trucks in service TMS use was only 16%.
• Shippers and manufacturers used a TMS system primarily for LTL shipments (47%). However, that number rises to 73% if the shipper moved an average of 30 or more truckload shipments per week.
• Home-grown TMS systems accounted for 6% of TMS systems in use today, and 3% of survey respondents use a freight module as part of another system (such as an ERP or sales management system). 

 Clearly transportation management systems are playing a more crucial role than ever before in managing the flow of goods. Companies have learned through experience and through their competition that decisions need to be done in a smarter way using available data. A good TMS fills that role.

J.B. Hunt study shows ways to boost trucking efficiency

Logistics partners in every part of the supply chain are in a constant hunt to increase driver utilization and optimization in trucking fleets—whether their own, their partners’, or their 3PL’s.

Now a white paper from J.B. Hunt Transport, Inc. says one solution for wringing maximum efficiency out of the Hours of Service regulations covering the legal driving limits for commercial motor vehicles (CMVs) may be right under our noses—inefficiencies at the loading dock.

Breaking down the math around the DOT-regulated driver’s “on duty” day of 840 minutes (14 hours), the report shows how quickly those minutes can drain away. The rules require a 30-minute break and 150 minutes for everything else a professional driver does, including pickup, delivery, safety inspections, and shutdown.

A quick calculation shows that leaves just 660 minutes of actual driving time per day, but surveys show most drivers fall far short. The J.B. Hunt report cites figures showing that a typical driver loses valuable time on activities such as empty drive time, appointment inflexibility, and time spent at the shipper or receiver location. Multiply that over many loads, and there’s no mystery what happens to missing capacity.

The paper points out ways to avoid those wasted minutes, such as:

• shave down loading and unloading times
• utilize a drop-and-hook strategy strategy instead of live unloading
• push back against rigid pickup and delivery times
• shrink shut-down time by asking shippers to provide onsite parking and amenities
• furnish a more predictable schedule to avoid cancellations, short lead times, multi-stop loads and other headaches

To read the full whitepaper, check out http://blog.jbhunt.com/wp-content/themes/files/pdf/660_Minutes.pdf.

A merger of material handlers

Two companies made news in the material handling sector this month when Inmar, the Winston-Salem, N.C.-based firm that operates supply chain, promotions, and healthcare platforms for retailers and manufacturers, announced it had acquired Scanner Applications. 

Inmar’s core business is supplying technology to help its clients operate intelligent commerce networks, connecting offline and online transactions in real time for retailers, manufacturers, and their trading partners. More specifically, the Inmar Supply Chain Network combines the unique transaction processing of returns with real-time analytics to enable supply chain improvement and facilitate reverse logistics.

Scanner Applications, of Cincinnati, supplies turnkey solutions for trade promotion management and tracking services. Combine that with Inmar’s offerings—such as digital and paper coupon and rebate processing and settlement, digital coupon distribution, promotion analytics, and shopper behavior research—and the new partners think they have something special.

The two companies plan to join forces to create a broad suite of consumer and trade promotion solutions for retailers and consumer packaged goods manufacturers, as shoppers increasingly demand both flexibility and personalization from retailers.

 As part of Inmar, the Scanner Apps team will continue to operate from its Cincinnati location, enabling Inmar to extend its presence in that area of the U.S. For more information, check out www.inmar.com.

Why supply chain managers should care about material handling equipment

Back in March, I attended the biennial ProMat trade show in Chicago. ProMat, produced by the trade association MHI, boasts more than 800 exhibitors and largely focuses on material handling equipment, technology, and services for warehouses and distribution centers (DCs). I was there in my role as a senior editor for DC Velocity, but could not help thinking about what the show had to offer readers of CSCMP's Supply Chain Quarterly, the Council of Supply Chain Management Professionals' member magazine of which I am editor. Among all the forklifts, conveyors, and other material handling equipment I found much that could—and should—pique the interest of supply chain managers and executives.

Why should someone who lives in the world of inventory management, demand forecasting, and network optimization devote time to learning about material handling equipment? Because that equipment is what makes it possible to implement supply chain strategies. Without efficient warehouses and distribution centers supported by new equipment and technology, all you have is a plan on paper (or a computer screen). And with supply chains undergoing increasingly rapid transformation influenced by disruptive technology, this has become an area supply chain managers can’t afford to ignore.

Here are just a few examples of the intersection of material handling and supply chain strategy from the show:

• Much of the more sophisticated equipment on display, such as goods-to-person systems and automated storage and retrieval systems, could play a role in helping companies address broader supply chain concerns—for instance, speed to market and bringing consistent performance to global operations. Vendors are providing complex solutions designed from the customer back—that is, starting with a problem or a new market imperative, and developing equipment and technology that not only address that need, but also revise upstream and downstream processes as needed.
• E-commerce appears to be the single greatest factor influencing material handling equipment development. The design, or redesign, of everything from packaging equipment to conveyors and sortation systems to order picking and storage systems is being heavily influenced by the unique needs of e-commerce fulfillment. Software, too, is under the microscope; warehouse management systems (WMS), for instance, are being retooled to keep up with e-commerce’s faster pace and its focus on individual piece picking and shipping.
• Robotics has matured from a gee-whiz novelty to an important tool for bringing consistent, reliable, 24 x 7 performance to an array of tasks in high-throughput distribution centers. Robotic equipment—including some that is designed to work alongside human order pickers and packers—could mitigate the effects of labor shortages and allow more workers to shift from ergonomically challenging, repetitive activities to those that truly require human input. With labor availability, training, and management expected to become more problematic in the future, it’s time to look at robotics as a viable solution.

For more examples, as well as commentary on how this important subject fits into the big supply chain picture, be sure to read MHI’s Material Handling & Logistics U.S. Roadmap report at www.mhlroadmap.org. We've also covered the report at DCV.