it's not just about transportation anymore

If you think the most you can expect from a transportation improvement initiative is a reduction in freight costs, a recent report from Aberdeen Group might change your mind. According to the study, Integrated Transportation Management—How Best-in- Class Companies View the World Differently, leading companies have found that the benefits of effective transportation management go well beyond cutting freight costs. By boosting visibility of transportation data, these companies also improved warehouse productivity and inventory management, according to author Ian Hobkirk.

To compile the report, Aberdeen researchers surveyed shippers about their freight spend, their use of technology to collaborate with carriers and optimize carrier use, and the benefits of integrating transportation initiatives with other supply chain functions. Other survey findings include the following:

• Just 13 percent of respondents were able to reduce their transportation spend relative to revenues in the last two years.
• Companies identified as best-in-class in transportation management are 10 times as likely as "laggards" to have also reduced their inventory carrying costs.
• Those best-in-class companies are seven times more likely to have also reduced their warehouse labor costs year-over-year than laggards.
• More than half of the top companies found that online collaboration pOréals for inbound transportation helped them cut inventory carrying costs and warehouse labor costs.

For more information about the report, visit www.aberdeen.com.