Case Study SCHWING Stetter’s Path to End-to-end Logistics Digitalisation with ~8% Reduced Freight Costs and On-Time Deliveries Download Case Study About the Company Established
In the world of Fast Moving Consumer Goods (FMCG), logistics is the backbone of success. The efficient movement
With a zeal to expand their business, manufacturers are deploying digital logistics modules. The modern supply chain is complex and volatile in nature. At the same time, it can unlock various growth opportunities and Transport Management Systems (TMS) is a strategic leap towards resilience. However, due to prevalent myths, digital implementation is often subjected to resistance to change.
These misconceptions can be traced across all organizational levels. It is necessary to rectify these dilemmas via insightful workshops, strategic rectification and implementation roadmaps. Supply chain experts believe that businesses shall shift their mindsets towards the data-driven analysis of TMS solutions, to leverage functional value additions.
Industry leaders aim for impactful strategies to overcome the following myths hindering stakeholders’ participation in a digitalized logistics model. The drawn comparison between myths and facts enables insights into a TMS’ core capabilities.
Cost is one of the pivotal factors considered while implementing a digital module. Enterprises aim for maximum ROI without deviating from the predefined budget.
TMS software solutions are expensive, with a high maintenance cost. Manufacturers often fear that the price of integration and change accommodation might result in budget deviations. They might feel that implementing an entire end-to-end module requires costly investments.
TMS solutions are affordable with low ownership and change request costs. The pay-as-use feature ensures strategic investment in digital optimization. Individual modules can be implemented as per the process requirements and zero-lock-in allows organizations to discontinue without cancellation charges.
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Organizations are often skeptical about collective resistance from multi-stakeholder divisions as they feel that the solutions might not cater to the not-so-tech-savvy users. They often assume that comprehending the new digital execution module might hinder process efficiencies.
All stakeholders across the supply chain network might find adopting the new technological shift challenging. Non-tech-savvy users can encounter various operational gaps, delays and in-process errors due to a lack of digital expertise.
Higher adoption rates across the logistics landscape as digital solutions do not require high-end application expertise. The TMS integrates with the existing ERPs and can be used via a holistic mobile application.
An easy-to-use solution is preferred in today’s fast-moving industry setup. The logistics workflow comprises multi-stakeholder processes across all levels, thus requiring a simple, efficient TMS module.
A digital shift in the operational model might create new complexities amongst stakeholders. Transporters might be reluctant to adapt to the automation-driven workflow due to the fear of change in process execution.
A TMS-driven logistics module is easy to implement, execute and manage. Instead, it simplifies manual operations with the power of automation. All stakeholders, including transporters and drivers, can participate in the process stages and leverage more growth opportunities.
Data security and user-rights management dynamics are prime concerns around digital adoption. Logistics management operations involve complex documentation and data exchanges at every step, calling for optimum safety standards.
Crucial reports and documents are vulnerable to critical threats around third-party breaches, data disruptions, etc. Enterprises often fear losing their data to cyber attacks, damages and collaboration errors.
A cloud-based TMS allows digital documentation and EDI, eliminating chances of human discrepancies and misplacement. Businesses can customize user access rights across stakeholder operations, preventing confidentiality threats.
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Integration dynamics like strength, go-live strategy, ERP compliance, etc. TMS solutions must meet the company’s expectations and workflow parameters at the time of implementation.
TMS integration is a time-intensive and challenging task. Manufacturers misperceive that the procedure can take up to days, resulting in operational delays and increased manual workload. The newly integrated solution might hinder the existing ERP-driven workflow.
A technologically-efficient TMS solution integrates efficiently with the existing ERPs without altering the in-process operations. It allows logistics teams to go live within 48 hours. Its 24*7*365 customer support facilitates reliable assistance and requests for accommodation anytime, anywhere.
The global logistics ecosystem is undergoing a wave of digital optimization, setting new milestones for the industry verticals. Indian businesses resort to new approaches every minute to achieve collective participation, mutual efforts and seamless adoption across the supply chain network.
Leading organizations are investing substantially in campaigns, workshops and insightful discussions to help stakeholder units understand and acknowledge the upcoming digital implementation. It is essential to convey the purpose, post-optimization changes and benefits of a TMS to the relevant teams and transporters to eliminate the prevalent myths.
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