Implementing a TMS: Are You Set Up for Success?.Connect
Having invested in a transportation management system (TMS), you’re looking forward to its implementation. But the term “implementation” doesn’t really capture the full implications of this next step. Implementing a TMS means much more than installing and plugging in a system—the experience is transformative and requires some serious change management resources.
Over recent years, the supply chain profession has expanded to take in a wider range of disciplines—and functional titles. Nowhere is this trend more apparent than in the service provider space.
In the industry’s alphabet soup of provider titles, it can be difficult to figure out the differences between acronyms such as 3PL and 4PL, or LLP and LSP. Maybe you’re wondering whether there’s such a thing as a 5PL.
Does it matter if you know the exact differences between these acronyms? Well, misnaming a service provider probably won’t throw the efficiency of your freight network into a nosedive. And if you’re confused, there is no need to rush out and recruit a director of semantics.
Still, confusion over the functional identity of a service provider can reflect muddled thinking on the type of services you actually need. Also, a provider that calls itself one thing, but in reality fulfills another role, should raise some red flags.
Editor’s note: Since this topic and information are still relevant, we wanted to share this post with you on Connect, again.
Investing in a transportation management system (TMS) can be more complicated for large organizations that have to reconcile the needs of multiple business units in different geographies. The business models and associated markets can vary widely as well, for example if the company has grown through acquisitions.
The Internet of Things (IoT) is rewiring supply chains, yet we are only at the beginning of this journey. As innovation gains speed, there are broad supply chain issues that governments need to address in order to take full advantage of the incredible opportunities that lie ahead.