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Category Archives: transportation


Readington Farms: real time visibility for transportation & shipping

DPC Provided real time visibility for transportation & shipping operations to drive faster , more informed management decisions. DP&C is able to link disconnected operations and activities under one TMS operating system by integrating information from manual processes and existing DSI ERP (Data Specialists Inc.) application to enhance supply chain performance . DSI is one of the most used ERP applications in the dairy & food product manufacturing and distribution industry.

The Challenge: Create real time visibility for transportation & shipping

Resource management and allocation to execute delivery of existing sales orders is managed through manually spread sheets that mitigates operating visibility.

Validations to tie together system , process and resource activity is cumbersome and time consuming Delivery Chain of custody for food products is not readily availability and cannot be easily validated Operating improvement is not easily measured for current and future state due to the lack of timely, visible information

Connect separate processes , manual systems and information from existing ERP application into a seamless enterprise to drive efficient management decision making

The Solution: 

Implement the DP&C SmartFleet TMS application to provide systemic and real time visibility for transportation to the transportation operation.

Integrate the sales order management process to and from the existing DSI ERP application to electronically match demand (sales orders) and supply (resources —–drivers , tractors , trailers) to provide an efficient and visible chain of custody for transportation operations.

Manage the order to cash process seamlessly through the DPC SmartFleet application and integration with DSI ERP to mitigate redundant data input , increase the validation of information , create a platform for efficient supply chain expansion.

Implement temperature chain of custody for food deliveries under the FSIS requirements (USDA —-Food Safety & Inspection Service) Provide system and process efficiency to mitigate redundant administration associated with manual tracking of delivery systems (bossies & dollies) , payroll management , sales order invoicing

Tie together the sales order management and hours of service management requirement into one application and management process

The Results: real time visibility for transportation & shipping

Successfully linked sales order and resource management together to improve the visibility of information and delivery performance Mitigated redundant data administration in the sales order management area by directly linking proof of delivery information to DSI for customer invoicing

Eliminated the redundant administrative effort to track delivery systems (bossies and dollies) and provided more visibility to chain of custody to improve overall asset management , reducing annual shrink

Ties together all the elements associated with the weekly payroll process and provided system validation to reduce redundant administration One transportation system from which to grow and improve operating results

Provides real time visibility of resource execution versus sales order assigned.

Selecting a Transportation Provider

Selecting a Transportation ProviderWhen selecting a transportation provider many companies are torn between selecting a third party logistics company or (3PL) or working directly with providers.

Advantages of a 3PL transportation provider:

1. Purchasing power of a larger procurer of freight providers to provide the lowest cost rates and best service for the purchaser of services.

2. High investment in information technology to provide efficient ability to track pick-up and delivery, consolidate multi-company merchandise into efficient truckload mode versus LTL pricing, and integrate with multi-client ERP applications to present a seamless order management system to the user base.

3. Provides the opportunity for a firm to reduce the transportation management overhead associated with managing its pick-up and delivery process.

Advantages of self managing your transportation providers:

1. Direct engagement and contact with the transportation provider network. Those companies that actually deliver product and directly maintain physical (tractors & trailers) & human (drivers) assets. This allows for direct rate and service negotiation to assume best price and delivery experience without paying additional 3PL management fees.

2. “Doesn’t put all the eggs in one basket”——a contract with a 3PL provider is typically a multi- year engagement. Although significant time and effort can be spent on contracts, there are always multiple interpretations on the verbiage which presents the opportunity of cost and service expectations not to be met.

3. The technology investment spent to integrate with 3PL systems can be invested in the firm itself to mitigate a “hostage” situation from the 3PL & provide high flexibility to the firm to manage its own transportation network.

Summary:

Firms should approach and evaluate its current transportation management process in the following way:

1. How should firms direct its human resource base:

a) Investing in its own or 3PL technology
b) Build its own internal management or purchase managed services

2. 3PL versus Direct purchase :

a) If the firm is not satisfied with the 3PL performance , does it have a pragmatic out from the agreement
b) Is the firm aware of the asset based companies to manage the process itself

3. Strategic

a) Is transportation a core component of a company’s business plan critical to customer satisfaction and profit margin management