Transportation management's role in the new supply chain
-- Logistics Management, 12/1/2009
Historically, logistics and supply chain professionals excelled at managing the core components of transportation, including truck routing and the sourcing of air contracts; yet few of them understood the direct and indirect impact transportation management has on other parts of a business.
That's all changed. These days, it's imperative that logistics professionals gain a comprehensive understanding of how transportation management affects all areas of a company—from business strategy to finance, sales to service—in order to develop a supply chain that drives value to the bottom line.
In this session, Albert Lo and Dan Albright of Capgemini ask attendees to take the first step in that direction. “Few shippers first grasp the holistic approach to transportation management,” says Albright. “They understand the components, but they don't know how transportation management fits into the performance of the entire organization.”
To help break down those barriers, Lo and Albright introduced attendees to the five “personified” roles of transportation management: The Service Representative (by managing risk of service interruptions); The Gymnast (driving value through innovative programs); The Bouncer (protecting cargo from increasing risk of theft); The Environmentalist (adopting leading supply chain practices); and the Financial Analyst (promoting lean practices to cut waste and drive value).
“Performing these roles will allow the transportation management function to contribute to overall supply chain excellence,” says Albright, who calls supply chain excellence an “ever-changing” goal that companies must strive to achieve. “As customer requirements, infrastructure, and technology change, so too do the requirements to achieve supply chain excellence.”
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Why not take a poll of those transportation managers who read your magazine to find out how many (what percentage) could/can define the term "holistic approach" -- without resort to a dictionary? Then ask yourself if this article was relevant to their everyday work experience.
Bud Cohan - 2010-10-2 11:26:42 EST
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