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Webinar - Maximizing value out of a TMS

How to get the optimal transport rates and service?
Steps towards better Transport Management
Many companies have acknowledged the need to better manage the transportation from a financial, visibility and a process perspective.

However, just implementing a Transport Management System (TMS) will not do the job.

Although the software is delivering many functionalities to make this happen the big challenge remains how you will align your organization to make sure you can use the TMS in an optimal way.

Key questions include: how can you be sure that you have the optimal cost levels, the right rates, the right rate structures and the right service and performance levels. How can benchmark contribute to answering these questions ? How should we on-board carriers, how do we manage rate updates, how do we maintain carrier changes and implementations, how do we handle KPI’s and keep process documentation up to date?

Effective ways to manage a TMS
How to avoid typical TMS pitfalls?
What efforts are involved in running a TMS?
How to efficiently set-up rates/data and to manage them?
How to get the most out of your TMS investment?
What TMS vendors don 't tell you but what you need to know?

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Webinar - Maximizing value out of a TMS

  1. 1. Control Pay (‘Q Smart Transportation Management Maximizing value out of a TMS towards Smarter and Better Transportation Management 3 cl: {#26 Unlocking the value of Transportation Management (Systems) C0lltl‘0lP8y§"‘
  2. 2. About ControlPay controlvam History 1 3 YEARS IN BUSINESS Founded in bal Coverage on a EMEA and global scale. ControlPay is the largest Freight Audit provider in Europe. Privately held company, doubled in size in the last4 Our team years. _ 1 2 5 1.: .. ,. E Employees ~: _A 1'5 '°~ ~ A7‘: ta‘-3:: -Mm Unlocking the value of Transportation Management (Systems) ControlPay§" lnlomnllonnl
  3. 3. About ControlPay ControlP; iy~_ . We implemented over 2 O O 0 carriers in over4 0 countries, for more than 50 0 sites. Tender . . . Freight Audit 5uPP°"t Currently we actively FOR] ‘ U N F maintain over a1O O 0 GLOBAL carrier contracts and rates. ' Rate consultancy Among our customers are 1] TMS tools Fortune 50 0 companies. TMS managed ControlPay has over 10 years services experience in managing processes, data, exceptions, contracts and rates. ControlPay * _ U
  4. 4. TMS market characteristics controipayg - lndustry adoption around 35% 0 Many companies compete in the mid market(25-100 million USD freight spend) 0 Typical savings achieved: 6°/ o of the freight spend 0 Top 5 that serves the Tier 1 market: Oracle, Descartes, Manhattan Associates, JDA, SAP 0 Double digit growth until 2019 0 Currently most companies underutilize functionalities - Cloud solutions become the preferred option 0 Increasing number of companies are turning to their service providers for managed services ‘Gartner Gartner Magic Quadrant for TMS 2014 sources ARC Advisory Group TMS market research study 2014 -; ‘ / ’ Buck ’ ‘j 1 C°Mu''I"'I U! llL)( ltliig ill-(4 / ill-. .'t, ‘ of ll"/1l‘. Sl)()ll. :il. |()i’i l‘‘lt1li. lft_]. E‘3l‘, f]lillg}/ :l€‘lliLl C0ntrolPay§" ' L, ‘/V lflllffllllonll
  5. 5. Full outsourcing 0 Control tower concept 3PL or 4PL completely taking care of logistics Integrated with ERP/ WMS or with external partner systems Buck Consulunis International 3 Models for working with TMS Partial outsourcing Critical tasks in-house such as load building Planning and routing but other tasks like Freight Audit Rate updates Claims management EDI with carriers Customs activities managed by third parties ControlPay 5') Full in-house Full use of a TMS All functionalities are being used internally Best option for simple set-ups or very large set-ups Full Centralization Top down approach 1 System Full in-house works well with a static network Control Pay 5:!
  6. 6. 3 Models with outsourcing TMS Control Pay -_ . Partial outsourcing _ Full outsourcing Advantages Full in-house - Focus on core tasks Advantages - Control of the market Advantages - 1 supplier for logistics ‘ Fl'3Xll? ll_l"Y’t° Change f“"Ct'°”5 You are in full control 0 No carrier management ' l"-“ll V'5'b'_l'tY _ - Less papenivork ' “We ma'"te{‘3n_€e C°V°'ed Disadvantages ‘ M0“? Standard Pricing ° heme. ’ orlgamzatlon Implementation takes long ' Better Vl5lbllltY ° erllaln C “er to your core and a lot of management 0 Focus on core tasks b”5'“°55 attention _ A unique organization Disadvantages Disadvantages needs to be built internally ° ”‘°'. °°"'°°. “‘“. ’° . I#'; ’., ‘;‘, ‘;"§‘. I;°' l. l?l3l. lZaiIrT$"v5.i. ‘$'v". °3.Z? ii. . Typlcally fled In Vllth - - Manage and audit the third la’ f"°m C°""- operational functions losing a Rigid approach in planning feeling with the market P “Y customer service freight - Long term contract - Less flexibility - Returing to In-house is difficult Bur L Con--ii i'. -7l'( lnli in .1 on ll audit, data management, reporting. carrier management ControlPay -_ v
  7. 7. The challenges of managing the TMS Control Pay « _' , 0 Key tasks 0 Non-critical tasks 0 Maintenance tasks . pianning o Issue and claim 0 Master data management . Routing handlmg 0 Rate maintenance . Booking ° Fre'ght‘a"d't - Process management ° Rep°rt'ng 0 Routing management ° s“C°e5 fact°"5 ° KeY elements 0 Users should be 0 Discipline o On-time updates 0 Well-trained - Ownership * ** * ‘ o KPl's and T‘ o Have focus/ enough time ° Data and process managmg KPI 5 o Having deep logistics / network governance - Standard knowledge operating procedures - Should be tested every once in a while Increase of logistics staff to manage TMS Buck » T ~. . r controlpay-_, lnl-vln. i'irm. il
  8. 8. V'/ ~“7/ ~ Buck --—‘l ? Consultants ‘-/ >‘/ International Oljucur £: .;'c / //M I U PANlll. ,PINA ®C. H. ROBINSON Carrier integration will become challenging Cont rol Pay 5') Ema ~: ::: : IE] SCHENKER jda. Q , * hellmanll’ n. ma. i.. .. Worldwide Logistics / sterling '= / commerce 0*‘ KUEHNE l NAGEL 1 E! !! " Expediters - Carriers are not equipped to handle many different interfacing set-ups - Carriers as well have limited IT resources - Shipper project manager typically do this for the first time - Delays of many months are very common Unlocking the value of Transportation Management (Systems) COIltl'0lP8y§"‘
  9. 9. Onboarding carriers ControlPay-_'. Onboarding of carriers is labor intensive and needs a specific focus Data analyses Building interface Training of the carriers Contract and rate upload Contract and rate analysis Data mapping for the interfaces Testing the interface and the data Setting up operating procedures This always takes more effort than most people think ControlPay -_ ‘,
  10. 10. TMS Managed services ControlPay‘_', Key elements TMS that need to be managed CP services Master data Master data management Came’ rates Rate maintenance (updates, analysis Contracts Fuel surcharges New carriers Onboarding carriers Process management '5_5“e5 Exception management Exceptions inquiries Freight Audit & Billing Data transmission issues Cost allocation parameters Currency conversions ControlPay maintains data on a ongoing basis and ensures that processes can run smoothly Control Pay i_' ,
  11. 11. Advantages of outsourcing TMS Maintenance Control Pay (‘Q 0 Strongly controlled by SOX compliancy, |(P| 's and SOP's 0 Full dedicated focus 0 1 Centralized team will manage all your data 0 Benefit from wide experience in analyzing, maintaining data and rates 0 Internally people will not be distracted by non- critical tasks 0 Flexibility in which components you outsource 0 Lane Management ‘'1 R: _,. -' Ui'ilur. ,?4ii: g ‘Ll‘: £‘ vaitie» of li'~, ':lEfI'Ull»ill{)l‘. ‘l‘1J: I'! ;!§jt‘, "i‘4'. ’l’. iSv: .:»: ::i: ai ControlPay! )
  12. 12. SWOT TMS Control Pay 5') Strengths Weaknesses TMS is a multifunctional system - TMS is still expensive and takes long to implement TMS offers a wide range of benefits - TMS loses out to freight audit providers when it comes to freight accounting - A lot of TMS have a limited depth and geographical scope. TM5 is a Well-recognized Service - TMS leaders claimed all the known industry leaders - TMS is only as good as the Master Data is - Most TMS are non-user friendly and remain complicated to the end-user TMS can be integrated with other software systems. e. g. WMS Opportunities Threats TMS becomes more affordable due to Saas TMS ° In mld‘2020 TMS mafkef Will | ’e3Ch its SME is a new growing market for TMS saturation - People who operate TMS do not use or realize its full functionality and benefits - TMS has to be constantly maintained - It is resource consuming to maintain TMS in house Cloud TMS application is becoming a preference Customer demands system integration in order to achieve full visibility and real-time information Buck Contufllflll I31‘ . ?:‘ 5 iii K4 _ . :3 -. j‘i '5 1' vii. .‘. -I If: :3 i: :~“. ‘Eli International
  13. 13. Gain unrivalled insights Pieter Kinds O 0Freightpayment Carlo Peters Connect with our speakers today - Resourceful industry insights 0 Logistics optimization o Ongoing updates - - Logistics solutions o Business Intelligence lnfographics / VA Buck Con-ulhnu VLV mmmioml Unlocking the value of Transportation Management (Systems) ControlPay (‘Q Patrick Haex ControlPay 5')