Transportation Management Systems (TMS) Implementation from a Shipper s Standpoint

Transcription

1 Transportation Management Systems (TMS) Implementation from a Shipper s Standpoint Gregg Sayers Vice President, Logistics GNC Mike Kolesar Director, Supply Chain Transportation Stein Mart

2 Agenda Quick Backgrounds of Gregg and Mike Some questions for the audience The ROI Vendor Compliance and Routing Guides TMS and Internal Systems Infrastructure Choices System Implementation and Use Inbound Outbound Freight Payment and Audit Reporting Conclusions Questions

3 Background Gregg Sayers 25 years experience in retail distribution and transportation with companies such as Limitedbrands, Stein Mart, and GNC Currently lead transportation team supporting over 9,000 locations in the US and Internationally Experience with TMS implementations, complete supply chain conversions, supply chain optimization Mike Kolesar 29 years experience in the Transportation Industry. Most recently, 7 years with Stein Mart and 9 years with APL Logistics. Skilled in Retail Distribution, 3PL Management, Intermodal and Food Distribution. Experienced with TMS implementation, management and engineering.

4 Questions for the Audience How many shippers? How many currently have a TMS? How many are considering a TMS? How many have chosen a TMS and are now going down the path of implementation? How many are unsure of what a TMS can provide for your company?

5 The ROI (Return on Investment) Document Critical in level setting the businesses expectation on the value of a TMS Should contain more than just freight savings benefit Shipment/Load Optimization Rate Shop/Mode Shift Visibility and Tracking Freight Audit and Payment Vendor Accountability Reporting and Metrics CC Bypass Some other considerations to ask yourself and your organization What the acceptable payback time frame (3 years, 5 years, 10 years)? What s reasonable to expect out of year 1? How will implementation delays affect the ROI? Should you include the ROI in the budget? Should the TMS be capitalized or expensed if a managed service?

6 The ROI (Return on Investment) Document Cont.

7 The ROI (Return on Investment) Document Cont.

8 Vendor Compliance and Routing Guides Arguably the MOST critical elements to have in place before implementing a TMS system Must Have Routing Guide - defines your shipping expectations to the vendor including: Routing submission requirements/lead time Loading requirements Documentation Hint: Use your TMS s routing inputs to drive the expectations in the routing guide Great to Have Vendor Compliance System separate or part of TMS which can track, report, generate recoveries from vendor routing violations Commercial Zone ASN timeliness and accuracy Labeling requirements PO ship window compliance Detention, Deviation from Routing, lead time violation, incorrect shipping details

9 TMS and Internal Systems Infrastructure Choices Questions to Help Determine Your Choice Managed by someone else or managed by you? SAAS model or behind your firewall? Do you want to configure or do you want the TMS provider to configure? IT resources, internal or outsourced, pre and post implementation? Internal and external training?

10 System Implementation and Use The Big Picture How long from the contract being signed will I see some real results from my TMS? Expect months depending on: Clarity of design elements Level of vendor compliance Carrier on boarding EDI Transition from paper billing/3 rd party billing to TMS Rollout plan, Phased or Big Bang

11 System Implementation and Use, Cont. Inbound RMS integration Vendor integration WMS integration Carrier integration Other 3 rd Party Software integration - Mileage Calculator, LTL rating engine, Financial Management, Compliance Software

12 System Implementation and Use, Cont. Outbound RMS integration WMS integration Carrier integration Other 3 rd Party Software integration - Mileage Calculator, LTL rating engine, Financial Management

13 System Implementation and Use, Cont. Freight Payment and Audit JDE, invoice processing software/integration EDI 210 vs. carrier portal TMS contract management Invoice processing, flow GL coding, manual/automated Invoice variance threshold

14 System Implementation and Use, Cont. Reporting Financial Reporting, Accrual Carrier Metrics, Tracking, Service, EDI Vendor Metrics, BRC (Business Recovery Charges)

15 Conclusions and Questions