Top strategies driving the future of transportation management

When businesses leverage their local and global networks strategically, they are able to optimise the use of their resources to reduce costs and improve the resilience and performance of their supply chains. 

To stay competitive in a crowded market, however, it is necessary to be aware of the latest trends, approaches, and technology to use, and maintain strong relationships with logistics partners like FM Logistic, who have the necessary expertise and technologies to deliver the right goods, to the right place, at the right time, in any sector or industry. 

Below, we will discuss the key trends that define transportation management at present, and how to keep a competitive edge. 

Transportation management is all about organising and improving how goods move from one place to another. It includes choosing the best transport modes (by land, sea, or air), planning routes, optimising loads, and working with all partners in the supply chain to keep deliveries on track. 

Transportation management systems (TMS) enable companies to automate planning, track shipments, and ensure compliance with regulations. When using a system to track performance metrics like delivery speed and costs, organizations can make better decisions about their supply chains, improve its performance, and even make it more sustainable (sustainability and performance don’t need to be diametrically opposed and can actually go hand in hand, a topic we’re exploring in our latest white paper, “The performance and sustainability paradox in supply chains: can we have it all?”).

Today, supply chain professionals and retailers face an array of challenges in managing the transportation and delivery of goods: 

To ensure logistics operations are as efficient as possible, there are a few transportation management strategies to consider. 

Effective transportation management begins with identifying inefficiencies, simplifying workflows where possible, and optimising supply chains for better inventory management, warehousing, and transportation. 

A transportation management system (TMS) can further help improve routes, track shipments, and lower costs, while also adapting faster to changes or disruptions. 

By combining shipments from multiple manufacturers with compatible products into a single delivery, companies can optimise load capacity, reduce costs, and minimise the environmental impact of transportation. 

For example, FM Logistic’s pooling solutions, developed in the early 2000s, help address rising demands for fast and efficient deliveries – and benefit from mutually shared resources. Pooling lowers the costs per pallet by maximising truck usage, reduces the number of trucks on the road, and helps businesses improve delivery frequency and reliability. 

Sustainability and performance in logistics don’t have to be conflicting goals; supply chains can be both sustainable and drive performance with the right strategies, such as mutualisation, pooling, and electrifying fleets. 

Transitioning to low-emission or electric vehicles requires a larger upfront investment but could potentially reduce long-term operating expenses, especially when paired with tools like route optimisation and telematics to streamline mileage. 

To decide on the right strategies, businesses need to know where they stand; FM Logistic has built an emissions calculator to help assess this and optimise carbon footprints.

Using a mix of transport modes – road, rail, sea, or air – can help improve flexibility and use the most efficient option based on specific needs. 

Multimodal transportation enables companies to avoid bottlenecks and minimise disruptions – but to leverage it efficiently, it’s necessary to have a global partner with a local footprint like FM Logistic that can help balance speed, performance, and sustainability goals when deciding on which transportation mode is best for a specific use case.

To ensure the resilience of transportation operations, managers need to always stay up-to-date with the latest trends and technologies that will shape the future of supply chains. Here are some of the most important trends to be aware of: 

To maintain a competitive edge in your delivery operations, you need to stay on top of key trends, risks, and opportunities that’ll shape the future of the sector – and always look for ways to align performance and sustainability objectives.