Making the Case for Transportation Optimization

The new realities of the logistics environment have made transportation optimization more important than ever. Logistics Management covered the development and evolution of transportation management systems (TMS) for more than 15 years, and its reporting shows that TMS users achieve an average cost savings of 7.5% when they use preferred carriers, better procurement negotiations, and put low-cost mode selections to work.

The number of logistics operations using TMS is steadily increasing, with the magazine’s most recent reader survey finding that nearly 40% of shippers are using the system as part of their overall supply chain management strategies.

And while many firms are familiar with the benefits of TMS, transportation optimization—or, the ability to analyze shipments, rates, and constraints to produce freight plans that minimize costs—remains an elusive goal for many. In fact, many users remain unclear on exactly how to justify the business case of transportation optimization—or, they assume optimization is too complicated or expensive.

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