Posted in Operations and Supply Chain Terms, Total Reads: 906
Definition: Transportation Management System
In the Indian context the transportation is involved in all the stages of a supply chain and logistics. It starts from the procurement stage to delivery of material. The warehousing and the final distribution all involve transportation. It comprises of 35-40 % of the total operating cost in logistics. It is difficult to support multimodal transportation because of excessive fragmentation and lack of coordination in this sector. The components of a TMS are
For example a company located in Boston has to distribute in North East then it will maintain the Truck to its full capacity and using fewer number of truck will transfer it to the warehouse where it will be distributed using below the truck line capacity
Product Mixing Instead of using three different sources for complete shipment the three products are converged at a single location which mixes all of them and sub-distributes using a single source.