Cloud TMS the Answer to Surging Transportation Costs

Cloud TMS the Answer to Surging Transportation Costs

By Lisa Henthorn, V.P., Marketing Communications

On July 1, the Wall Street Journal published “Freight Costs Bedevil Consumer Goods Companies –Report,” detailing some new research on the skyrocketing transportation costs plaguing consumer packaged goods companies. According to a report by The Boston Consulting Group and the Grocery Manufacturers Association, freight costs have jumped as much as 14 percent for U.S. consumer packaged goods companies since 2012, driven largely by a truck-driver shortage and deteriorating transportation infrastructure.

For many top-brands, transportation issues are a top concern, as a freight capacity shortage in domestic truck and rail transportation has come down hard on supply chain managers. Companies have responded to transportation challenges in a variety of ways, including relocating manufacturing and warehouse facilities and maintaining positive relationships with transportation companies – both viable options.

However, an often overlooked solution already working for many top brands is cloud-based transportation management (TMS). Use of the cloud provides ease and affordability of access and maintenance, top priorities for supply chain executives, as well as full visibility into carrier performance, rapid adjustment for unplanned delays, and quick auditing and invoice settlement that helps preserve quality relationships and collaborative partnerships with carriers and vendors. Cloud-based transportation management systems (TMS) are still relatively new to the market, but they’re catching on due to their many advantages over costly and outdated enterprise solutions.

Cloud-based TMS answers the call by enabling shippers to scale easily as companies expand and new processes emerge, eliminating the need for IT infrastructure by seamlessly integrating into existing systems of shippers, partners, carriers and customers.

As supply chain and logistics leaders explore solutions to transportation issues, a cloud-based TMS like Eyefreight offers a viable option that provides visibility, optimization and collaboration in even the world’s most complex shipping markets. The WSJ article did a great job of spotlighting the problem, and Eyefreight always enjoys discussing the solution that’s working for Heineken, Levi’s, Tata Steel and other top brands.