In This Issue: Advantages of Using a Fully Managed LSP, Honored to be an Honoree!, Translogistics Aides in 9/11 Move, Employee Spotlight, We’d Love Your Vote!
What is SUPPLY CHAIN OPTIMIZATION?
Well, it's a lot like asking 4 economists about the economy and getting 5 differing opinions. Similarly, transportation managers vary widely on what they consider the definition of supply chain optimization.
If we can agree that a supply chain is the sequence of processes to produce and distribute a product, and that optimization refers to make something as functionally effective as possible, then here is a simple definition:
Supply Chain Optimization – making the production and distribution of a product as fully perfect, functional, and effective as possible.
When you boil it down there are at least six ways to optimize and maintain cost savings, if not improve customer satisfaction:
- Aggregating multiple shipments such that several large LTL shipments move as a single truckload.
- Multi Point Optimization - building multi-stop pickups with multi-stop deliveries
- Zone Skipping - pooling smaller parcel shipments into a larger LTL or a TL shipment and arranging final mile delivery using a local distribution/sorting facility closer to the shipments' destinations.
- Pooling - same as Zone Skipping but with larger shipments
- Continuous moves - stringing shipments together for continuous runs
- Leveraging backhauls to improve carrier utilization in exchange for lower rates
- Vendor Compliance and Accountability- consignee controls the choice of carrier and spend for better rates and reduction in risk
Considering new logistics alternatives like these while creating accountability systems across carriers, 3PLs and shippers will result in optimized transportation.
Continuous collaboration as your business changes ensures the supply chain remains optimized.
Many 3PLs try to sell shippers on outrageous savings before even understanding their needs and current practices.
At TLI we take a different approach. In our 22 years we've learned a lot about supply chain optimization and how to partner with clients. We’re not a sales team, we’re Logistics Engineers and we’ll thoroughly understand your program before presenting our solutions.
Your supply chain is unique, and its optimization is critical to the success of your business.
Scott McDevitt, President of Translogistics
Advantages of Using a FULLY MANAGED LSP
Inbound Logistics recently found that only 35% of companies are using a Transportation Management System (TMS) for their day to day shipping activities. This is a staggeringly low percentage rate considering the obvious and frequently published benefits that can be realized from using a good TMS.
On average, just the implementation of a TMS alone can yield up to 6% savings without even changing carriers or lowering rates, according to Arc Advisory Group. These savings can largely be attributed to basic efficiency gains and productivity enhancements. A good TMS can provide control over the logistics spend, carrier selection/routing and provide visibility to accurate pricing when scheduling shipments. Much of the impact of a basic TMS deployment are typically realized at the shipping level, however the value of a fully utilized TMS can and should go deeper. A good TMS, combined with the effective management of the system and relationships with the carriers, can provide benefits far beyond just the shipping department with an impact felt within many other facets of the company. So with all these obvious benefits, what are some of the reasons that keep a system from being implemented, and what’s more, having a true measure of success realized in the form of savings, control and visibility?
- High cost
- Time to learn, train and implement
- Getting buy-in from all departments that might benefit (after you have mastered the system)
- Upkeep and system management
- Integration with carriers (EDI Management and APIs) – ongoing support
- Lack of expertise
- Contract Management (assuming you are contracting your rates with carriers in the first place), someone has to
- Risk change averse… knowledge and know how… justification and clarity of message to deliver ROI to upper level management.
There is a better way! There is a solution that can provide all the benefits of a basic TMS and take it to its fullest potential. Partner with a qualified Logistics Solutions Provider (LSP) that provides a quality TMS as part of its services. With the right partner, a managed TMS solution will provide a better realization of the full potential because you are working with experts that not only know the systems but are familiar with the actual usage of the tools and the best means of deployment. Value is realized by providing:
- The system
- The people to run the system
- The back office support for the freight and management of the data
- Fully managed freight negotiations
- Mitigated Invoice Audits, reconciled invoices and oversight of GL Coding and cost allocation
- Imaging and management of the carriers
- EDI and digital interactions and capabilities
Implementing a TMS solution does not have to be a daunting task. If it’s done right with the right system and the right partner, a full LSP program can become a reality much easier than you might imagine. If your goal is to increase productivity, control costs and provide the proper tools for management of your logistics needs, contact us to see how we can help you.
Tim Thomas, Director of IT
Translogistics Helps Coordinate 9/11 Artifact Move
Translogistics got a call just a few weeks ago from Robeson Township state representative, Mark Gillen. Mark is in the process of creating the Berks Military History Museum and needed some help with delivering his first set of big artifacts.
Both items moved were from the attacks on September 11, 2001. One piece was from authority rail line that ran underneath the World Trade Center at the time of the attack. The other piece was large sign that stood outside Building 5 of the WTC.
With the aide of NEMF and a local tow company, Tiny Rinehart Auto Center, the pieces were successfully delivered to the future museum location.
“We really appreciated the opportunity to help the community in this way” said Scott McDevitt, Translogistics' President.
Meet Ed Caldwell
Ed Caldwell, Logistics Manager, has been with Translogistics since October of 2007. With over 29 years in the logistics industry, Ed has held multiple positions including traffic, claims, and customer service . As Logistics Manager, he oversees the day to day operations of TLI’s Logistics, Claims, Tracking, and in house Brokerage departments.
“My position allows me to be active in many areas of the daily business at TLI. I enjoy interacting with everyone here as well as our customers and our carriers. It’s great to be part of a team of people who are all working towards the same goal, to help provide our customers with superior service.”
Married? Children? My wife Maggie and I have been married for over 26 years. We have lived in Gilbertsville for 12 years, and have 2 daughters that both graduated from Boyertown High School. Our oldest, Kayla, graduated from Syracuse University and now lives in Los Angeles where she works as a writer for a magazine. Our youngest daughter, Krista, is a student at Slippery Rock University where she is working on her Doctorate in Physical Therapy.
Favorite free time activity? My wife and I enjoy watching all 4 of Philadelphia’s major sports teams play, especially the Eagles. We often get together with family and friends to watch games.
Are you involved in any charities? My family has been involved with the Boyertown Relay for Life since it started 8 years ago.
“I have worked closely with Ed over the last 4 years that I’ve been at Translogistics. He has a great deal of experience and industry knowledge. He provides great service to our customers, and he is also fun to be around and work with.
- Tim Wolfskill, Senior Logistics Specialist
“The greatest technology in the world hasn’t replaced the
ultimate relationship building tool between a
customer and a business; the human touch”
- Shep Hyken
Claire Gowland: 5/18/09
Dimas Widjaya: 5/20/13
Ben McDevitt: 5/24/10
Lisa Marderness: 6/4/13
George Ditzler: 6/27/13
Kristen Witek: 5/9
Dimas Widjaya: 5/13
Ashley Rubendall: 5/18
Zach Burke: 5/19
Melanie Bernstiel: 6/2
Tom Coblentz: 6/14
Has Translogistics achieved extraordinary results for you and your company? Have we been steadfast partners through good times and tough? Have we helped you cut costs, find efficiencies, boost productivity, and keep your supply chain flowing? Visit this link to cast your vote for Translogistics to be a part of Inbound Logistics’ Annual Reader's Choice: Top 10 3PL Excellence Awards.
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