Transportation Forecasting
Shift from Reacting to Planning
"The transportation management systems within advanced planning and scheduling largely became focused on transportation execution, with no tie to demand planning or tactical supply planning. With the growing importance of transportation because of cap and trade, sustainability, and volatile oil prices, this needs to change. The demand-planning platform needs to extend into a tiered set of transportation applications to determine strategic, tactical, and operational logistics decisions. It's time for transportation planning to grow up and stand alongside manufacturing planning."
Historically, logistics planners have had to rely on informal communication of promotions and ad hoc estimates of changes in lane volume due to changes in network structure. With Transportation Forecasting, promotions are visible weeks in advance, creating the opportunity to reserve capacity as needed rather than waiting until orders arrive and paying a premium for freight. Shifts in sourcing and volumes due to changes in manufacturing capabilities are also reflected in the logistics forecast, so contracts and budgets can be more effectively managed.
Transportation Forecasting is a state-of-the art solution that is complimentary to existing Transportation and Warehouse Management Systems, enhancing the value of your current investments. By synchronizing with S&OP plans, Logistics is now aligned with Supply Chain and Manufacturing through the use of a common operational demand signal.
- Reduced spot transportation purchases
- More accurate budgeting and bidding
- Mode conversion from over-the-road to intermodal
- More effective warehouse staffing
- Improved sustainability from more efficient carrier coordination
- Ability to collaborate with carriers