Collaborative Transportation Management

4. CTM Value-Add

Table of Contents

CTM adds value by eliminating transportation inefficiencies inherent in most order fulfillment processes. First, it reduces the amount of dwell time carriers experience waiting to load or unload shipments. Second, it optimizes the weight and/or volume utilization of transportation assets. Third, it reduces deadhead miles by better sequencing and routing transportation assets within a transportation network. Fourth, it reduces process errors which can lead to inefficiency. Finally, it reduces billing errors and inaccurate communications.

The opportunities to add value increase as multiple shipper networks are integrated, connecting a broader sphere of shippers, receivers and carriers and enabling enhanced opportunities for communication and improved execution. Central to the effort to connect a network of collaborating parties is the development of a common information hub. In general, the level of information sharing increases with the level of collaboration. Figure 4-1 below portrays the extension of value contribution as the collaborative network expands and information sharing increases.

Next Page

Previous Page