by John Edwards by zly32307

VIEWS: 79 PAGES: 7

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                                  Jim Lowder is aLways thinking arby’s.
                                  that’s because, as the fast food chain’s direc-
                                  tor of quality assurance, he’s responsible for
by John Edwards
                                  the condition of the food products delivered
                                  to the company’s 3,600 stores.
                                     he also thinks a lot about transporta-
                                  tion management systems (tms) because he
                                  believes they play a critical role in ensuring
                                  that arby’s stores receive the ingredients for
                                  their sandwiches, salads, desserts, and other
                                  menu offerings in optimal condition.
                                     Lowder isn’t the only business manager
                                  who spends time pondering tms tools. as
                                  the number of offerings grows and software
                                  delivery options expand, the market is becom-
                                  ing increasingly complex. this complexity is
                                  causing managers at businesses in a variety


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of industries to think hard about tms                                              ■ ■ ■               fuel costing, routing and mapping, and
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technologies and the role they can play                                                                vehicle communications.


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in organizing and managing transpor-                        ■                                            “all types of businesses can use tms,
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tation networks.                                                                                       but it’s most appealing to high-volume,
  “any company that ships product is                                                       ■           complex scenario companies,” says
a likely tms candidate,” says adrian                                           ■ ■ ■                   kevin harrison, senior solutions consul-
gonzalez, who analyzes the tms mar-                                                                    tant for redPrairie, waukesha, wisc.
ket for the arC advisory group, a               small- and mid-size business (smb)
research firm based in dedham, mass.            segment as additional growth motiva-                   Overwhelming Choices
  “most small companies start out man-          tors. the tms market will exceed $1.5                     the tms options facing businesses
aging transportation manually, with             billion by 2011, representing a com-                   are snowballing and can easily become
spreadsheets and other paper-based              pounded annual growth rate of 7.3                      overwhelming, says Joe martha, a vice
systems,” he notes. “but as companies           percent, arC predicts.                                 president at booz allen hamilton, a
grow, they eventually find they can’t              as tms sales grow, vendors are                      mcLean, Va.-based global business
get away with a simple solution – not if        reaching out to customers in an ever-                  consulting firm. besides choosing from
they want to stay cost competitive and          expanding number of industries,                        among the myriad areas tms products
meet service-level requirements.”               ranging from retailers to heavy manu-                  now cover, businesses also face the
                                                facturers – even carriers and 3PLs.                    choice of buying into a comprehen-
A Common Thread                                   “historically, tms solutions have                    sive tms suite – capable of covering a
    the tms market surpassed the                been geared toward manufacturing                       spectrum of logistics-oriented tasks – or
 $1-billion mark for the first time in          or retail environments, but now 3PLs                   acquiring individual stand-alone appli-
 2006, and is poised to grow at least           and carriers are also looking for soft-                cations and knitting them into their
 seven percent in 2007 based on arC’s           ware applications to help them manage                  own tms.
 year-to-date results (see chart, page 50).     transportation,” gonzalez says.                          “tms is not just a big, integrated
“the tms market has grown faster than              while they are a diverse group, tms                 solution,” martha says. “some compa-
 predicted the past two years,” gonzalez        buyers share one thing in common:                      nies might need only one or two types
 says.                                          the need to tie together the loose ends                of applications.”
    the tms market is fueled by con-            of their transportation infrastructure.                   Ultimately, the decision of whether
 tinued demand for global trade                 tms applications and modules are now                   to implement a full suite or a point
 management solutions, a reinvigorated          available for tracking and managing
 market for fleet management solutions,         just about every aspect of a company’s
 and increased sales to logistics service       transportation infrastructure, including               TMS solutions offered by vendors such
 providers (LsPs). gonzalez also points         vehicle maintenance, carrier selection,                as RedPrairie help businesses manage
                                                                                                       all aspects of transportation, including
 to strong activity in europe and in the        accounting, cargo care and handling,                   routing and mapping.




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 solution boils down to knowing just                                                    ■ ■ ■               processing,” Lowder says.
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 how much tms technology a company                                                                            the information turnaround time


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 needs. while most businesses have a                             ■                                          often left arby’s managers in the awk-
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 good fix on their tms goals, martha                                                                        ward position of looking at data after
 warns that vendors often try to sway                                                           ■           a delivery had already been accepted
 prospective customers into buying soft-                                            ■ ■ ■                   or refused.
 ware with functions they will rarely – or
 perhaps never – use.                           support job-related metrics.                                Gaining Insight
    with any tms software, but key                 Facility managers, for example,                             since deploying Pimm in 2006,
 products in particular, it’s important to      might use Pimm to display operational                       arby’s managers have gained enhanced
 determine the quality of the program’s         metrics related to the physical environ-                    insight into a variety of areas.
 output. because vendors need to serve          ment such as “freezers,” “security cams,”                     “we have better information to make
 companies with varied and flexible             and “fuel levels.”                                          decisions about load acceptability,”
 needs, it can be tough for them to get           “we currently use the solution to                         Lowder says. “we also have more visi-
 a single product to work reliably under        monitor the deliveries of key products                      bility into who is doing a good job– not
 all conditions.                                between our approved manufactur-                            only with respect to how they’re han-
    one major challenge martha sees             ing facilities and distribution centers,”                   dling our products, but how they’re
 with large tms suites, for instance, is        Lowder says. “we tried a few other sys-                     executing our monitoring program.”
 their inability to handle different cost       tems, but they were not as efficient as                       arby’s vendors and distributors also
 structures – such as managing an inter-        we would have liked.”                                       appear to be pleased with the technol-
 nal fleet vs. handling an outside carrier.
“some tms vendors find it difficult to
 handle both cost structures effectively,”              Total TMS Shipments ($ Millions)
 he says.                                               TMS demand is growing because companies, particularly those still managing
                                                        transportation operations manually, are realizing that cost increases and service
                                                        level failures are inevitable unless they gain greater visibility and control over
Arby’s to Go                                            transportation operations.
   For Lowder, cold chain management
is a critical way of ensuring food qual-
ity, so he needed a point solution to
address this particular challenge.
  “arby’s does not own or operate man-
ufacturing facilities or distribution
centers, and we don’t haul our own
products,” he says. “but we do specify
systems to our supply chain partners.”
   For example, arby’s requires many of
its logistics partners to use the Personal
information management monitor
(Pimm) from Procuro, a tms vendor
based in san diego.
   Pimm is designed to help smbs                                                                                      SOURCE: ARC Advisory Group, 2007

manage various operational resources,
says Vincent P. gordon, Procuro’s chair-
man and Ceo. Using various types of                 the problem was two-fold. “First,                       ogy. “the vendors are getting more for
probes, Pimm can monitor opera-                 those systems relied heavily on person-                     their money because they have access to
tional devices inside vehicles, facilities,     nel performance at both the shipping                        all their deliveries, not just the problem
and warehouses to ensure that envi-             and receiving locations,” Lowder says.                      loads,” Lowder notes. “the distributors
ronmental conditions are maintained,            if procedures weren’t carefully followed,                   get a system that’s easier to use.”
surveillance devices are operational,           trip data would be lost.                                       tms technology is helping eastern
and plant equipment is running within              “second, even if everyone did their                      Propane and oil coordinate its propane
specified limits.                               part, the method of communicat-                             and fuel oil services to 80,000 new
   Pimm is similar in concept to an             ing the data for questionable loads                         england residential and commercial
online chat program, using a buddy list         was manual: attaching files to e-mails                      customers. the rochester, n.h.-based
to manage digital resources. instead of         and, in many cases, even using over-                        company uses its tms solution to map
friends, family, and colleagues, Pimm           night delivery service to send monitors                     the movement and activities of approx-
lets business users create lists that           back to our monitoring partner for                          imately 80 delivery and 70 service


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vehicles from seven sites serving new                                           ■ ■ ■       software wasn’t being used as a snoop-
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hampshire, maine, massachusetts, and                                                        ing tool and would eventually reduce


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rhode island.                                            ■                                  many frustrating activities – such as
                                                 ■ ■ ■
                                                                                            sitting in traffic jams or servicing cus-
Efficiency and Savings                                                                  ■   tomers in illogical route sequences.
   the company’s tms goal was to find                                       ■ ■ ■          “they’re fine with it now,” Ford notes.
a technology that could bring effi-                                                            Convincing eastern’s delivery driv-
ciency and cost reductions to service           integration to back-office systems.         ers was much easier because they could
and delivery operations, says kathy                 eastern uses FleetOutlook for manag- already see how the tms was helping
Ford, eastern’s vice president of cus- ing deliveries, assessing miles traveled             the company’s technicians. “drivers
tomer care, forecasting, and logistics. and gallons delivered, and calculating              didn’t make a fuss because they came
after considering fleet management vehicle stops per day and per employee. second,” Ford says. “it was already a part
offerings from several vendors, the “based on these reports, we can reroute                 of the technicians’ workday, so it became
company ultimately selected wireless            freight to optimize the number of part of the drivers’ culture, too.”
matrix, a reston, Va.-based supplier of         stops,” says Peter Paone, eastern’s deliv-
tms solutions to companies in the util- ery manager.                                        Subscribe Now
ities, service delivery, telecom, rail, and        the product also supplies an impor-         the tms market has added yet
distribution markets.                           tant safety feature. “it allows us to       another layer of complexity over the
   wireless matrix’s FleetOutlook solu- observe all our vehicles simultaneously, last few years with the arrival of appli-
tion combines a web-based fleet providing a bird’s eye view of each                         cations delivered via the internet:
management application with an in-ve- one’s location at any time,” Paone says. on-demand or saas (software as a ser-
hicle global positioning system (gPs) “if a customer reports an emergency, vice) deployment
receiver, wi-Fi capabilities, and a sup- we can quickly determine the closest                 “instead of companies paying a
porting hardware platform, says mike            responder.”                                 licensing fee up front and implement-
Jakab, wireless matrix’s vice president             eastern encountered some pushback       ing software in-house, they access the
of sales. FleetOutlook provides functions       when it introduced the tms to its tech- application via the internet and pay a
that allow companies to accomplish              nicians, who were suspicious that the       monthly subscription fee,” explains
more work with their fleet assets, lead- technology was primarily intended to               gonzalez. “this makes it easier for
ing to greater efficiency and lower costs. spy on their activities with the ultimate        companies to get solutions up and run-
that philosophy meshed perfectly with           goal of driving them to work faster and     ning quickly.”
eastern’s goal.                                 harder. “it was a big culture change;          snack food manufacturer otis
   the tms includes vehicle mapping, the technicians were not happy about                   spunkmeyer recently bit into a hosted
customer-defined stops and points               it,” Ford recalls.                          tms. with some 62,000 food industry
of interest, as well as dynamic status              over time, however, eastern was able    customers, otis spunkmeyer delivers
reporting, trip reporting, and XmL data         to convince its technicians that the        frozen cookie dough, prebaked cookies,
                                                                                            and packaged baked goods to conve-
                                                                                            nience stores, supermarkets, restaurants,
                                                                                            and food service distributors. the com-
                                                                                            pany also serves institutional, military,
                                                                                            and vending machine operators.
                                                                                               mike mahon, director of distribution
                                                                                            operations logistics, handles the san
                                                                                            Leandro, Calif.-based company’s trans-
                                                                                            portation interests. he’s responsible for
                                                                                            the distribution– including transporta-
                                                                                            tion and warehousing with contracted
                                                                                            carriers and 3PLs– of all finished foods
                                                                                            from the plant forward. the firm ships
                                                                                            products to its 55 direct-store delivery
                                                                                            facilities, as well as to more than 1,000
                                                                                            local distributors.
                                                                                               mahon is currently in the process
                                                                                            of deploying a hosted tms supplied
                                                                                            by LeanLogistics, holland, mich. Lean
OIL’S WELL THAT ENDS WELL. Although Eastern Propane and Oil’s technicians were
initially wary when the company installed a fleet management application with GPS           Logistics’ web-based On-Demand TMS
tracking, they soon came to appreciate the time-saving tools the program provided.          combines traditional tms functionality


 Inbound Logistics • December 2007
with collaborative capabilities that can      to turn all their processes over to a tms        in future return on investment.
only be delivered online, says Pete stiles, simultaneously. “Understand your                     “tms benefits vary by company,
LeanLogistics’ vice president of strategy     operations and processes, and what               depending on how inefficient the pro-
and marketing.                                functions you want to enable today               cesses are to begin with,” gonzalez says.
   On-Demand TMS is designed to con- and down the road,” he says.                             “in general, companies achieve cost
nect customers to their supply chain             after deciding on a particular tech- reductions – anywhere from five to 15
trading partners and to promote infor- nology, it’s time to begin assessing tms                percent or more.”
mation sharing. Connected parties             vendors and their various offerings.                a transportation procurement
aren’t limited only to a company’s car-          “when you survey the vendor land- event can also reap rewards. “many
riers – the service provides access for all   scape, make sure their capabilities align        corporations have never put their
relevant partners, including suppliers, well with your requirements,” gonzalez                 transportation needs out to bid, which
consignees, shippers, and third parties.      says. “Look for a vendor that has proven         can present savings opportunities,”
   the web-hosted tms provides                expertise in your vertical industry.”            gonzalez says.
daily planning, execution,                                                                                   businesses may also see
and settlement functions in                                                                               labor reduction benefits by
addition to periodic strategic                                                                            automating processes that
procurement functions. it                                                                                 had been done manually.
also supplies functions that                                                                             “savings also can be extracted
are best delivered through                                                                                by optimizing routes, com-
a net work, such as sup -                                                                                 bining loads, and making
plier inbound management,                                                                                 smarter decisions,” he adds.
appointment scheduling,                                                                                      the biggest mistake busi-
benchmarking and network-                                                                                 nesses make is buying a tms
wide reporting, a private                                                                                 that doesn’t fit. this usually
transportation marketplace                                                                                happens when a company
to obtain capacity and reduce                                                                             fails to fully analyze the need
costs, and supply chain                                                                                   for a particular tms tech-
visibility.                                                                                               nology or doesn’t carefully
   otis spunkmeyer currently                                                                              investigate a particular tms
uses On-Demand TMS for all                                                                                offering and its vendor.
products leaving its plant, as                                                                              “Companies invest heav-
well as for forwarding inven-                                                                             ily in a tms package, then
tory to distribution centers                                                                              discover it doesn’t meet
and customers. down the                                                                                   their needs, or it’s too com-
road, the company plans to                                                                                plicated, so they go back to
use the solution for load dis-                                                                            using spreadsheets,” martha
tribution optimization and                                                                                says. “the biggest pitfalls
tendering.                                                                                                are caused by not doing
   by the time the t ms                                                                                    the homework up front
is fully deployed, mahon           SWEET SAvINgS. Snack food manufacturer Otis Spunkmeyer                  a nd r u sh i ng i nto t m s
expects that managers will         uses a TMS solution to track all products leaving its plant, and to     implementation.”
                                   forward inventory to DCs and customers.
have clear visibility of their                                                                                time and effort invested
financial spend down to the customer              it’s also important to pay attention         in researching tms technologies and
and item level. “they’ll be able to effec- to matters that may seem inconse- their applications can pay substantial
tively manage their carriers on a wider       quential at first. “how much does the            dividends for many years.
basis and have more visibility to more        vendor spend on r&d? does it con-                  “anyone considering a tms should
carriers,” he says.                           tinuously improve its product, or has            commit to doing it right,” says arby’s
                                              it offered the same software year after Lowry. “the process can be time-con-
Narrowing the Choices                         year?” gonzalez asks. “For global com- suming, and you might find out more
   with so many tms choices being             panies wanting a single tms worldwide, than you want to know about your
used in different ways, businesses could      make sure the vendor can support you             company’s operations at first.
get hung up on deciding how best to           everywhere.”                                       “but as you gain a better under-
approach the market.                             after cutting through marketing               standing of what goes on during
  “Companies need to examine their            hype and vendor promises, compa- transportation,” he notes, “it will get
current capabilities,” gonzalez says.         nies gradually begin to realize that             easier to make better-informed deci-
   he advises companies not to attempt        tms effectiveness is directly reflected          sions about tms solutions.”              n


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                                ■                                                                                Thinking TMS? Check out this list
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          ■                                                                                                      providers offering innovative TMS
                                                                                                                 packages.
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                  PRODUCT & VENDOR
                                ■ ■ ■                     WHAT IT DOES                                      THE COMPANY LINE

           H      FleetOutlook                            Combines a Web-based fleet management             FleetOutlook is a comprehensive 360-
           L      Wireless Matrix                         application with an in-vehicle global             degree solution, backed by 24x7 support,
                  Reston, Va.                             positioning system receiver, Wi-Fi                which enables the full value chain of
                  www.wirelessmatrixcorp.com              capabilities, and a supporting hardware           dynamic schedule planning execution. From
                                                          platform.                                         vehicle mapping and XML data export to
                                                                                                            optional telematics monitoring, it offers
                                                                                                            features that maximize productivity and
                                                                                                            reduce cost.



           H      HighJump Transportation                 Provides tools to automate once-manual            TMS is strategic and necessary. The
                  Advantage                               optimization processes, improve customer          challenge of finding the best way to optimize
                  HighJump Software                       service, and reduce costs. Managers can           and route shipments can no longer be met
                  Eden Prairie, Minn.                     spend more time on strategic transporta-          with paper-based methods.
                  www.highjumpsoftware.com                tion requirements and less effort on running
                                                          scenarios.



           H      i2 Transportation                       Delivers transportation modeling and              i2’s TMS uses configurable business rules
           L      Planning and Management                 analysis, transportation planning and man-        and appropriate constraints to transform
                  i2 Technologies                         agement, bid collaboration, supply chain          order fulfillment, procurement, and
                  Dallas, Texas                           visibility, and replenishment planning.           replenishment plans into cost-optimized and
                  www.i2.com                                                                                executable transportation plans that adhere
                                                                                                            to inventory and network constraints.



           H      Infor SCM Transportation                An integrated global transportation and           Globalization, increasing pressure on profit
           L      Management                              trade compliance solution that aims to            margins, and the growing complexity of
                  Infor                                   simplify global trade by managing inbound         the supply chain demands companies pay
                  Alpharetta, Ga.                         and outbound transportation from order            special attention to their TMS strategies.
                  www.infor.com                           inception to delivery.




           H      JDA Transportation                      Helps shippers, carriers, and transportation      The solution covers the entire closed-loop
           L      Management                              service providers effectively manage multi-       transportation process – from strategic
                  JDA Software                            modal logistics networks.                         transportation sourcing, planning, and
                  Scottsdale, Ariz.                                                                         optimization to shipment visibility, payment,
                  www.jda.com                                                                               and performance analysis.



           H      LeanLogistics                           Provides procurement, planning, execu-            LeanLogistics offers a Web-based TMS that
                  OnDemand TMS                            tion, private transportation marketplace,         combines traditional TMS functionality with
                  LeanLogistics                           appointment scheduling, continuous move,          collaborative capabilities that can only be
                  Holland, Mich.                          visibility, and business intelligence features.   delivered online.
                  www.leanlogistics.com



           L      mySAP Supply Chain                      Offers transportation planning and shipment       mySAP Supply Chain Management offers a
                  Management                              completion, shipment cost calculation and         complete, integrated set of tools needed to
                  SAP                                     settlement, shipment cost calculation for         plan and execute supply chain operations.
                  Walldorf, Germany                       individual customers, billing of customer         Users can collaborate at all planning levels and
                  www.sap.com                             freight, service agent selection, follow-         work with partners on taking orders, tracking
                                                          up and supervision of shipments, and              inventory, shipping products, and managing
                                                          management of shipment costs.                     relationships with customers and suppliers.



          Inbound Logistics • December 2007
 H  Hosted on the vendor’s site
 L  Licensed to the user



        PRODUCT & VENDOR           WHAT IT DOES                                    THE COMPANY LINE

  L     Oracle Transportation      Integrates and streamlines transportation       Oracle Transportation Management delivers
        Management                 planning, execution, freight payment, and       scalable capabilities in an open standards-
        Oracle                     business process automation on a single         based architecture that allows users to
        Redwood Shores, Calif.     application across all transportation modes.    start with a single component or any mix of
        www.oracle.com                                                             components.



  H    Personal Information        Manages operational devices inside              PIMM was designed to be used by the
       Management                  vehicles, facilities, and warehouses,           average business person. You don’t have to
       Monitor (PIMM)              ensuring that environmental conditions          be a computer expert to use PIMM.
        Procuro                    are maintained, surveillance devices
        San Diego, Calif.          are operational, and plant equipment is
        www.procuro.com            operating within specified limits.



  H    RedPrairie Transportation   Six different modules cover various aspects     RedPrairie Transportation Management
  L    Management                  of TMS, including shipment optimization,        solutions automate transportation tasks
        RedPrairie                 partner coordination, and performance           and bring better visibility to order-fulfillment
        Waukesha, Wisc.            management.                                     activities. They connect multiple parties and
        www.redprairie.com                                                         business processes throughout the broader
                                                                                   supply chain, continuously optimize all
                                                                                   transport variables, and bring organizational
                                                                                   efficiencies and cost reductions.



  H    ShipperConnect FMS          Traces railcars contained in permanently        Provides a comprehensive, proactive rail
  L     RMI                        assigned fleets, or rail shipments loaded       shipment tracking system. With FMS there
        Atlanta, Ga.               in “free-running” equipment. Inbound and        are no more “black holes.”
        www.railcarmgt.com         outbound rail shipments can be monitored
                                   using information from Class I railroads, and
                                   from more than 300 short line and regional
                                   railroads.



  H    Telargo Mobile Asset        Enables users to streamline operations          Telargo is easy to use and dependable,
       Management Solution         and maximize the performance of mobile          providing a fast ROI due to its built-in
        Telargo                    assets, including vehicles, machinery,          integration capabilities. Telargo allows users
        Jersey City, N.J.          trailers, vessels, and drivers/operators.       to focus on their own business, providing
        www.telargo.com                                                            the necessary logistical tools and decision-
                                                                                   making information at a moment’s notice.



  H    Transplace TMS              Encompasses freight and carrier                 The TMS market for on-demand technology
        Transplace                 optimization, event management, and             continues to increase. Generally accepted
        Plano, Texas               TMS financials.                                 as good business practice, Web-native TMS
        www.transplace.com                                                         provides cost-effective, robust solutions for
                                                                                   shippers of all sizes.



  H    Transportation Planning     Allows users to create a strategic trans-       This Web-based solution easily links your
       and Execution               portation plan and efficiently manage daily     plans to actual transportation processes
        Manhattan Associates       operations.                                     to gain global visibility into all shipping
        Atlanta, Ga.                                                               activities, allowing you and your trading
        www.manh.com                                                               partners to coordinate operations.



                                                                                                   December 2007 • Inbound Logistics

								
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