Collaborative Transportation Management

2. Defining Collaborative Transportation Management

Table of Contents

Collaborative Transportation Management (CTM) is a holistic process that brings together supply chain partners and service providers to drive inefficiencies out of the transport planning and execution process. The objective of CTM is to improve the operating performance of all parties involved in the relationship by eliminating inefficiencies in the transportation component of the supply chain through collaboration.

CTM focuses on enhancing the interaction between three principle parties -- a shipper, a carrier, and a receiver, as well as secondary participants such as third-party logistics (3PL) service providers. Participants collaborate by sharing information about demand and supply (e.g., forecasts, event plans, expected capacity), ideas and capabilities to improve the performance of the overall transport planning and execution process, and assets, where feasible (e.g., trucks). The process begins with an order/shipment forecast, and includes capacity planning and scheduling, order generation, load tender, delivery execution, and carrier payment.

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