Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Supply chain software has historically been split into discrete chunks, which meant users had to turn to a transportation management system (TMS) to solve one problem, a warehouse management system (WMS) for another, and an enterprise resource planning (ERP) program for an overview of it all.
These distinctions worked fine for years as the tradition-bound trucking, warehousing, and material handling industries caught up to the technology wave sweeping corporate America. But as the digital marketplace re-orders supply chain operations, it's evident that the siloed model is no longer up to the task.
TMS vendors have responded by tearing down the fences that used to separate trucking software from other logistics solutions. Today's TMS programs share overlapping databases with ERP, WMS, and warehouse execution systems as well as with fulfillment planning, order management, business intelligence, data analytics, and other specialized applications. Linking these isolated data fields can trim waste and create new profit, whether the user is a shipper, third-party logistics service provider (3PL), broker, truckload carrier, or other supply chain player.
The merger between TMS and its software siblings has been made possible by recent advances in two particular fields—cloud-based computing that allows for shared interoperable databases, and mobile application development that supports native apps built to take advantage of the unique capabilities of devices like tablets and smartphones.
OMNICHANNEL DISTRIBUTION CHANGES THE GAME
One of the main forces driving the change in transportation management systems is omnichannel retailing, which is pushing users to demand higher performance from their transportation management systems and increasing the execution pressure on fulfillment operations, said Fab Brasca, vice president for global solution strategy and intelligent fulfillment at Scottsdale, Ariz.-based developer JDA Software Group Inc.
In response, developers are moving away from treating those diverse software applications as independent silos of information because the isolated data can lead to bottlenecks and latency in decision-making—an unforgiveable sin at a time when companies need to be able to respond swiftly to any disruption in the supply chain.
"A customer could say, 'I've already got WMS, TMS, and order management software. Isn't my supply chain efficient enough?' And we answer that it may have been efficient enough when all you were doing was pushing inventory to your stores. But with this change to omnichannel, it's not just about store fulfillment and online fulfillment, but about overall consumer fulfillment," Brasca said.
Companies increasingly operate in a marketplace where complex global problems affect not just transportation but also omnichannel distribution, retail, and manufacturing operations. To tackle those challenges, software must feature interoperability between transportation and warehousing, both in sharing transactional flows and in merging the two worlds with optimization logic.
A "warehouse-aware" TMS application can help users to eliminate common bottlenecks—for instance, by allowing them to revise dock schedules to better coordinate inbound and outbound traffic, said Brasca.
Another advantage a networked TMS offers over standard transportation management systems is the ability to host a link to mobile computing platforms, giving users more visibility into shipments in transit than is allowed by current technology, such as daily updates generated through electronic data interchange (EDI). In comparison, a TMS linked to a location-enabled smartphone could use signals from a global positioning system (GPS) receiver to provide real-time updates that give users better connectivity with carriers and let them find quick solutions to capacity constraints.
GOING MOBILE
Adding mobile capabilities to a TMS can do much more than simply allow users to do a better job of tracking deliveries and monitoring schedules. For example, it is easier to track a load if the TMS can accommodate "geofences," which, when incorporated into software programs, enable users to receive alerts when a truck crosses predefined geographic boundaries as measured by an app on the driver's smartphone.
"With an automated location-enabled device, you could be notified if the truck is ahead of schedule or behind," said Bill Ashburn, chief marketing officer at HighJump Software Inc. "You would know he's arrived, because he broke the geofence and he's no longer moving. So now you know he's at the DC."
That location-enabled TMS extension could also allow a company to automatically track information relating to fuel taxes, driving logs, and hours of service, sparing drivers the task of keeping detailed records and reporting them to the dispatcher once a day.
The transition from daily updates to real-time connectivity will produce big results, but it may take time to reach all levels of the shipping industry.
"Transportation is a very generational business," Ashburn said. "The millennials come in and they're more savvy with technology. The generation (before) them is wowed by real-time data."
Mobile TMS apps can do far more than generate truck schedules, Ashburn said. A driver with a TMS app on his smartphone could take photos of damaged cargo, record vehicle inspections at checkpoints, or scan images of documents such as a bill of lading. In some cases, a mobile-enabled TMS could even generate additional profit for users.
"Now, you can see if there's a vehicle here and a load available over there. Let's connect the dots and reduce deadhead miles," Ashburn said. "If you don't have it, you're at an extreme competitive disadvantage."
GREAT EXPECTATIONS
Shippers and their customers are raising their expectations for real-time TMS performance as they become aware of these abilities, said Chris Parker, chief operating officer of InMotion Global Inc., a TMS provider in Brandon, Fla.
"Today's logistics professionals are much more sophisticated than they were 10 years ago," Parker said in a press release. "They are used to one-stop online services, with access from any location and on any device."
TMS use has more than tripled since 2005, according to a July 2015 survey conducted for the company. The same survey showed 54 percent of logistics professionals use some sort of TMS software today, compared with just 15 percent 10 years ago.
Logistics companies are flocking to transportation management systems to address the issues that keep fleets from operating at maximum efficiency, particularly those related to drivers' schedules and delays that all-too-commonly occur at the junction between the warehouse and the truck.
Those pain points are among the top causes of wasted driving hours and lost freight-carrying capacity, according to a recent white paper from J.B. Hunt Transport Inc., a multimodal transportation logistics company based in Lowell, Ark.
Delays in transportation can cost freight carriers dearly because of the Department of Transportation's strict limits on truck drivers' hours of service, the report says.
Current regulations limit commercial motor vehicle drivers to an "on duty" day of 840 consecutive minutes (or 14 hours), which quickly shrinks to 660 minutes (or 11 hours) after subtracting mandated safety inspections and a required 30-minute break within the first eight hours.
Because the hours-of-service countdown logs all minutes consecutively, drivers can't simply stop the clock during traffic jams or warehouse delays. J.B. Hunt goes on to list a range of additional time-wasters, such as waiting around for freight to be loaded or unloaded, detention and dwell time caused by inflexible pickup and delivery times, and unscheduled variation in shipment schedules.
The common thread to most of these time-wasters is that they occur at the point where the truck meets the distribution center. That means a TMS app with access to warehouse data could help users avoid logjams by identifying time-consuming activities and devising a more efficient route.
By smoothing out those bumps in the road, a connected TMS application could add valuable minutes to every driver's day and boost the number of shipments passing through each warehouse.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.