Collaborative Transportation Management

4.1 CTM Value Continuum

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CTM benefits can be found with short- or long-range planning horizons. For example, if the focus of CTM is on the operational picture expressed days in advance, improvements are recognized in shipment and carrier management (improving asset utilization) and fleet routing and scheduling (improving cycle times and increasing carrier revenue miles). Experience to date indicates that value increases with 2-7 days of advance notice for these operational improvements. As the time horizon extends to months or quarters, collaboration efforts can improve efficiencies in transportation procurement and contracting. Finally, with a planning horizon of up to one year, strategic issues such as supply chain network design, market growth, fixed asset planning, and transportation planning and modeling can be addressed in the collaborative network. Annual forecasts can also prove valuable in contract negotiations. The potential benefits to Return on Assets and Investment are greatly impacted by such long-range strategic initiatives.

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