• Growing geopolitical volatility, supply chain disruption and rising expectations are increasing costs and risks for companies that depend on 3PLs, especially those lacking real-time visibility of goods in transit.
• A modern transport management system with real-time tracking, predictive analytics and access to a global carrier network boosts agility by improving ETA accuracy, enabling faster decisions, enhancing collaboration and automating core processes.
• Using AI-driven TMS tools strengthens resilience, cuts administrative effort and helps companies optimise routes, manage risk and protect profitability compared with outdated spreadsheet-based logistics.

Geopolitical unrest and supply chain uncertainty are adding costs at every stage of the transport management process. For the 90% of companies reliant upon third-party logistics (3PLs) companies, planning the movement of goods from manufacturer to end market has become ever more complex. Contingency planning encompasses not only attacks on shipping, weather events and port strikes, but also spikes in costs. Sustainability regulations increasingly mean companies need to understand the impact of transport decisions on Scope 3 emissions. Rising customer expectations can lead to penalties for late or damaged goods.

Without real-time insight in the location/expected time of arrival (ETA) of goods throughout the journey, organisations struggle to optimise and control their logistics. There is no fast, simple way to assess the cost/ efficiency/ timing implications of different transport decisions or to explore the power of collaboration to reduce costs and emissions. Plus, of course, many companies lack the essential insight required to keep customers up to date – and endure the inevitable fall out.

Elmer Spruijt, VP, Global Sales, Descartes, explains how the combination of real-time visibility and artificial intelligence (AI), plus immediate access to a global logistics network, are enabling companies to achieve essential change and increase their operational control throughout the logistics process.

Continuous monitoring

Escalating volatility is placing enormous pressure on organisations to improve agility and resilience at every stage of operations. For any business relying on overseas manufacturing, decisions regarding transport partners, first, second and third tier supply chain contingency models, as well as the implications of significant strategic shifts towards near-shoring, are business critical. Yet organisations still relying on transport providers’ periodic updates of shipping and delivery information, are operating blind.

These organisations are not only struggling to respond to both crisis and new opportunities. By the time they have gained the information required to support new strategic decisions, the options and opportunities will have been significantly reduced. Speed of response is vital when, for example, key shipping routes are compromised or major railways affected by disasters or strike. With the alternative carriers and route options limited by available capacity, it is those companies that are able to make the best, quick decisions that will have the edge.

The way organisations respond to these challenges is a very significant competitive differentiator. For European businesses, the vast majority of goods are acquired from China (which manufactures 29% of all global products) and the US (17%). Each market prompts different transport management challenges that can have an impact not only on cost but also delivery timescales and, hence, the end customer. From droughts in the Panama Canal and longshoreman strikes in the US to the risks associated with traversing the Red Sea, the logistics process requires continual assessment and review.

Real-time tracking

For the significant proportion of organisations still managing incredibly complex, multi-layered logistics progress on spreadsheets, the risks are growing. To retain control and safeguard profitability, organisations need the continuous monitoring that can only be provided by a Transport Management Systems (TMS) that leverages intelligence, including predictive analytics, to optimise routes and, critically provides the vital real-time operational overview.

Real-time tracking throughout the shipment process transforms organisation’s responsiveness. Tracking the journey from shipping to docks, trains to trucks, provides a constant update on ETAs, allowing companies to share information with partners and customers. This is particularly vital for complex, time sensitive and expensive products.

The installation of MRI scanners, for example, requires operating theatres to be cleared and dedicated installers to be on site. With little leeway for vital facilities to be offline, the ability to provide accurate delivery timelines in advance allows a company to build a strong relationship with both installers and the end hospital customer, reinforcing the overall experience.

Embracing collaboration

Another key layer to this process is the ability to leverage a network of hundreds of thousands of global carriers via a TMS. In addition to providing the chance to seamlessly compare routes, options and prices, organisations can also explore the power of collaboration. Real-time assessment of load types, journeys and available space automatically surfaces opportunities for safe load sharing, allowing organisations to maximise performance and minimise costs whilst also improving delivery certainty. Companies can also set priorities – for example opting for certainty over speed, or carrier performance record over cost – to optimise every aspect of the journey in line with business objectives.

This process can be further enhanced through automation, for example in creating automatic communication with carriers to provide information about the order, timeline and collection points. The TMS can also automate the production of relevant documentation for each stage of the shipment journey, further reducing the administrative burden and improving efficiency.

This zero-touch approach enabled by the automation of core processes further releases transport managers to focus on agility and responsiveness, including time to explore different resilience options and strategies. Increasingly, they are also gaining benefits from the addition of AI and analytics to gain greater insight into performance, highlight risks and rapidly surfacing rerouting opportunities where available.

Conclusion

Despite the impact of escalating volatility and uncertainty throughout global supply chains and transport management, far too many companies are still attempting to manage this incredibly complex logistics model using spreadsheets. Without real-time visibility, profitability is inevitably compromised. The lack of insights and resilience is increasing operational and financial risk. And delayed decision making is constraining business opportunities.

Companies able to leverage a TMS, as well as AI and access to a global logistics network, are adding another level of efficiency and control by automating routine tasks and providing better predictive insights across supply chains; that is reducing risk and embedding vital agility.