Cutting costs whilst boosting transparency

Although freight charges have been depressed by the current economic situation, no one should be under any doubt that they are set to rise over the medium to long term. This assessment is confirmed by all serious forecasters.

(Logistikwelt 09.2009) Higher wage costs and the introduction or increase of tolls, together with a range of other factors, have caused farsighted companies operating in transport-intensive sectors to begin adapting their current transportation management to meet the challenges of tomorrow. Exploiting the hidden potential within cross-company supply chains demands the involvement of IT. Integrated Supply Chain Execution solutions provide the necessary intelligence with which logistics experts can take an overall view of their operating processes and structure them optimally in respect of costs.

Standardized approach to intelligent cost management

Modern IT is the key to intelligent cost management. Powerful consistent transportation management systems are central to web-based integration platforms such as ‘logistics-server’ from inet-logistics. Integration platforms of this kind function as the central authority in Supply Chain Execution. They provide all supply chain partners with a common data and information base for integrated network planning, scheduling and service provider assignment, as well as associated asset and dock management, freight cost clearing and reporting.

Intelligent cost management based on integrated SCE structures is multifaceted. One thing is certain: investment in this area always pays dividends. By employing a modern SCE solution, logistics managers can trim their budget long term. Experience has shown that up to 20 percent of freight costs and up to 30 percent of process and inventory costs can be reduced by using systems of this kind.