global transportation management benchmark study - …global transportation management | benchmark...
TRANSCRIPT
In p
art
ners
hip
wit
h:
Sponso
red b
y:
Pub
lishe
d M
ay 2
015
Wri
tte
n B
y:
Eric
Joh
nson
Res
earc
h D
irect
or
Am
eric
an S
hipp
er
Glob
al T
rans
port
atio
n M
anag
emen
t Be
nchm
ark
Stud
yGo
od D
esig
n is
Goo
d Bu
sine
ss
Pa
rt o
f Am
eric
an S
hipp
er’s
Tra
nsp
ort
ati
on
Pro
cu
re-t
o-P
ay
Ben
ch
ma
rk S
eri
es
Executive Summary
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
ii
Wel
com
e to
Am
eric
an S
hipp
er’s
sev
enth
ann
ual b
ench
mar
k st
udy
of g
loba
l
tran
spor
tatio
n m
anag
emen
t, pr
oduc
ed in
con
junc
tion
with
the
Nat
iona
l Ret
ail
Fede
ratio
n (N
RF)
, Ret
ail I
ndus
try
Lead
ers
Ass
ocia
tion
(RIL
A) a
nd th
e C
ounc
il
of S
uppl
y C
hain
Man
agem
ent P
rofe
ssio
nals
(CS
CM
P).
This
rep
ort a
nnua
lly
exam
ines
the
tren
ds th
at im
pact
how
shi
pper
s an
d lo
gist
ics
serv
ice
prov
ider
s
man
age
thei
r int
erna
tiona
l fre
ight
tran
spor
tatio
n pr
oces
ses,
and
the
tech
nolo
gy
that
hel
ps s
uppo
rt th
ose
proc
esse
s.
Tran
spor
tatio
n m
anag
emen
t has
sta
rted
to m
ove
beyo
nd a
nut
s-an
d-bo
lts
func
tion
for
man
y sh
ipp
ers
and
LS
Ps—
it is
the
hub
aro
und
whi
ch t
hese
com
pani
es o
rient
oth
er k
ey s
uppl
y ch
ain
proc
esse
s. A
gain
st th
at b
ackd
rop,
this
yea
r’s
stud
y ke
enly
exa
min
es th
e el
emen
ts o
f tra
nspo
rtat
ion
man
agem
ent
com
pani
es a
re la
yerin
g ar
ound
sim
ple
plan
ning
and
exe
cutio
n.
Kee
p in
min
d, t
he v
ast
pro
po
rtio
n o
f re
spo
nden
ts t
o A
mer
ican
Shi
pp
er
rese
arch
initi
ativ
es m
anag
e g
lob
al, o
ften
hig
hly
com
ple
x su
pp
ly c
hain
s.
Run
ning
dai
ly la
ne o
ptim
izat
ions
and
bui
ldin
g lo
ad p
lans
are
nic
e, b
ut
mos
tly e
xpec
ted
func
tions
of a
tra
nsp
orta
tion
man
agem
ent
syst
em. G
lob
al
ship
per
s ne
ed v
isib
ility
and
net
wor
k d
esig
n p
latf
orm
s th
at w
ork
on a
cont
inuo
us b
asis
, allo
win
g th
em t
o p
lan
furt
her
upst
ream
and
rea
ct t
o
dis
rup
tions
up
stre
am o
r d
owns
trea
m.
The
stud
y in
clud
es th
e re
spon
ses
of 1
91 q
ualifi
ed g
loba
l log
istic
s pr
actit
ione
rs
surv
eyed
from
mid
-Mar
ch th
roug
h la
te A
pril.
For
the
purp
oses
of t
his
stud
y,
the
focu
s is
pla
ced
spec
ifica
lly o
n th
e st
ages
invo
lvin
g pl
anni
ng th
roug
h ev
ent
man
agem
ent a
nd th
e vi
sibi
lity
into
eac
h le
g of
thos
e pr
oces
ses.
Abo
ut tw
o-th
irds
of re
spon
dent
s in
this
yea
r’s s
tudy
are
task
ed w
ith m
anag
ing
both
dom
estic
and
inte
rnat
iona
l mod
es o
f tra
nspo
rtat
ion,
and
mor
e th
an h
alf
of t
hose
usi
ng s
yste
ms
to m
anag
e tr
ansp
orta
tion
do
so f
or fi
ve o
r m
ore
mod
es. G
iven
the
dive
rsity
of t
he re
spon
dent
poo
l—fr
om c
ompa
nies
man
agin
g
hund
reds
of m
illio
ns o
f dol
lars
in fr
eigh
t spe
nd to
thos
e m
anag
ing
less
than
$10
mill
ion
annu
ally
—th
e ne
eds
of th
ese
vario
us s
hipp
ers
and
LSP
s va
ry g
reat
ly.
And
whi
le T
MS
had
larg
ely
been
see
n as
a d
omes
tic to
ol th
at h
as b
een
shoe
horn
ed in
to in
tern
atio
nal e
nviro
nmen
ts in
the
past
, the
per
cept
ion
has
stea
dily
cha
nged
sin
ce w
e be
gan
benc
hmar
king
shi
pper
s si
x ye
ars
ago.
Shi
pper
s an
d LS
Ps
see
TMS
as
a to
ol th
at s
houl
d be
use
d to
pla
n gl
obal
tran
spor
tatio
n m
oves
and
exe
cute
thos
e pl
ans.
Exec
utiv
e Su
mm
ary
Transp
ort
ati
on
Managem
ent
Trends
Executive Summary
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
iii
The R
ole
of
Vis
ibilit
y in
G
lobal Tr
ansp
ort
ati
on
Managem
ent
One
unu
sual
dyn
amic
this
rep
ort e
xplo
red
this
yea
r w
as th
e ef
fect
Wes
t Coa
st
port
con
gest
ion
had
on tr
ansp
orta
tion
man
agem
ent c
osts
. Whi
le n
early
90
perc
ent s
aid
they
wer
e im
pact
ed c
ost-
wis
e by
the
cong
estio
n, a
roun
d a
third
said
the
impa
ct w
as le
ss th
an 5
per
cent
ove
r th
eir
expe
cted
tran
spor
tatio
n
spen
d. H
owev
er, n
early
a th
ird o
f res
pond
ents
sai
d th
e co
nges
tion
caus
ed
cost
impa
cts
of 1
0 pe
rcen
t or
mor
e.
Res
pond
ents
to th
is s
tudy
the
past
two
year
s ha
ve g
ener
ally
take
n a
mor
e
soph
istic
ated
vie
w o
f vis
ibili
ty th
an th
ey d
id w
hen
we
first
ask
ed a
bout
thei
r
pers
pect
ive
on v
isib
ility
in 2
013.
Tha
t mea
ns th
ey s
ee v
isib
ility
as
mor
e th
an
trac
k an
d tr
ace,
and
eve
n m
ore
than
exc
eptio
n-ba
sed
man
agem
ent.
Shi
pper
s ha
ve m
any
mot
ivat
ions
for
seek
ing
visi
bilit
y, b
ut th
e on
e th
at tr
umps
them
all
is th
e ab
ility
to r
espo
nd to
dis
rupt
ions
in th
eir
supp
ly c
hain
. Thi
s is
whe
re s
hipp
ers
have
evo
lved
from
the
“whe
re’s
my
stuf
f” m
enta
lity.
Tha
t
old-
fash
ione
d vi
ew a
llow
ed s
hipp
ers
to k
now
whe
n sh
ipm
ents
wer
e hu
ng u
p,
but i
t did
n’t p
rovi
de th
em w
ith m
uch
abili
ty to
red
irect
the
flow
of t
heir
carg
o.
It le
ft th
em m
ore
know
ledg
eabl
e, b
ut n
o m
ore
agile
.
The
valu
e of
vis
ibili
ty is
impo
rtan
t eve
n w
hen
ther
e is
no
disr
uptio
n or
cris
is.
Hav
ing
a vi
ew o
f shi
pmen
ts in
tran
sit a
llow
s a
ship
per
or L
SP
to e
nsur
e th
eir
netw
ork
is r
unni
ng e
ffici
ently
and
pro
perly
aga
inst
tran
spor
tatio
n pl
ans.
Res
pond
ents
hav
e ov
erw
helm
ingl
y in
dica
ted
that
vis
ibili
ty is
not
prim
arily
abou
t red
uced
cos
ts o
f low
erin
g in
vent
ory.
The
gran
d m
ajor
ity o
f res
pond
ents
see
sup
ply
chai
n de
sign
as
an im
port
ant
part
of t
rans
port
atio
n m
anag
emen
t. H
owev
er, t
here
’s a
cle
ar d
icho
tom
y
betw
een
wha
t res
pond
ents
per
ceiv
e to
be
impo
rtan
t and
wha
t des
ign
capa
-
bilit
y th
ey a
ctua
lly h
ave.
Nea
rly tw
o-th
irds
of r
espo
nden
ts d
on’t
have
the
abili
ty
to d
esig
n th
eir
supp
ly c
hain
out
side
of t
he d
ay-t
o-da
y pl
anni
ng a
nd e
xecu
ting
of th
at s
uppl
y ch
ain.
Few
er th
an o
ne in
five
res
pond
ents
use
a th
ird p
arty
serv
ice
or to
ol to
hel
p m
anag
e th
is in
crea
sing
ly im
port
ant f
unct
ion.
Jux
tapo
se
that
with
mor
e th
an fo
ur in
five
say
ing
supp
ly c
hain
des
ign
is im
port
ant.
In y
ears
pas
t we’
ve a
sked
res
pond
ents
to c
hara
cter
ize
the
qual
ity o
f dat
a th
ey
rece
ive
from
car
riers
in d
iffer
ent m
odes
. In
this
yea
r’s
repo
rt, t
he to
pic
was
fram
ed in
a s
uppl
y ch
ain
desi
gn c
onte
xt—
mos
t res
pond
ents
see
thei
r ca
rrie
r
data
as
good
or
aver
age.
Airf
reig
ht c
arrie
rs r
ate
the
high
est i
n te
rms
of d
ata
qual
ity, w
ith r
ail a
nd in
term
odal
pro
vide
rs a
mon
g th
e lo
wes
t. B
ut a
dam
ning
indi
ctm
ent o
f car
riers
acr
oss
all m
odes
is th
e pa
ucity
of r
espo
nden
ts w
ho s
aid
the
data
they
rec
eive
from
car
riers
is v
ery
good
.
The R
ole
of
Supply
C
hain
Desi
gn in
Transp
ort
ati
on
Managem
ent
Executive Summary
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
iv
Few
er th
an o
ne in
six
res
pond
ents
use
a p
redo
min
antly
man
ual p
roce
ss fo
r
tran
spor
tatio
n m
anag
emen
t—it
seem
s lik
e an
ant
iqua
ted
notio
n fo
r a
glob
al
ship
per
to p
ersi
st w
ithou
t a T
MS
of a
ny k
ind
thes
e da
ys. T
hat s
aid,
the
high
est
perc
enta
ge o
f res
pond
ents
(as
in p
ast y
ears
) ind
icat
ed th
ey u
se a
hyb
rid a
ppro
ach
to tr
ansp
orta
tion
man
agem
ent,
and
that
like
ly m
eans
som
e m
odes
for
thes
e
ship
pers
are
stil
l bei
ng m
anag
ed in
a m
anua
l way
. Glo
bal t
rans
port
atio
n m
anag
e-
men
t is
still
larg
ely
driv
en b
y 3P
Ls, b
y in
tern
al s
yste
ms,
or
by s
prea
dshe
ets.
A c
lue
as to
why
mor
e sh
ippe
rs a
nd L
SP
s do
n’t h
ave
a TM
S a
re th
eir
conc
erns
over
cos
t (bo
th u
pfro
nt im
plem
enta
tion
and
long
-ter
m s
ubsc
riptio
n or
mai
nte-
nanc
e co
sts)
, int
egra
tion
to in
tern
al s
yste
ms
and
conn
ectiv
ity to
out
side
par
tner
s.
Des
pite
big
pus
hes
from
TM
S v
endo
rs to
mak
e po
tent
ial u
sers
feel
thes
e as
pect
s
are
easy
to o
verc
ome,
ther
e re
mai
ns a
fear
that
a T
MS
will
take
tim
e to
impl
emen
t,
will
be
com
plex
to r
un, a
nd th
at th
e R
OI w
ill b
e de
pend
ent o
n in
tegr
atio
ns w
ith
syst
ems
and
part
ners
.
TMS
use
rs w
ant
to b
e ab
le t
o re
spon
d t
o a
tran
spor
tatio
n d
isru
ptio
n or
an
unex
pec
ted
up
tick
in d
eman
d in
rea
l tim
e, b
ut o
nly
36 p
erce
nt o
f res
pon
den
ts
say
thei
r TM
S a
llow
s th
em t
o re
spon
d t
o su
pp
ly c
hain
dis
rup
tions
, whi
le 4
4
per
cent
can
use
the
ir TM
S t
o re
spon
d t
o ch
ange
s in
dem
and
acr
oss
thei
r
rout
es a
nd m
odes
.
With
out t
his
capa
bilit
y, a
TM
S is
an
expe
rt p
lann
ing
tool
whe
n th
ings
are
run
ning
smoo
thly
, but
not
so
usef
ul w
hen
thin
gs g
o w
rong
, as
they
oft
en d
o in
rea
l wor
ld
supp
ly c
hain
s. H
avin
g a
TMS
that
allo
ws
you
to re
spon
d on
a g
loba
l bas
is, a
cros
s
all m
odes
, has
bec
ome
a ne
cess
ary
feat
ure
for
the
mos
t sop
hist
icat
ed s
hipp
ers.
Transp
ort
ati
on
Managem
ent
Technolo
gy
Trends
Table of Contents
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
5
Tabl
e of
Con
tent
sExe
cuti
ve S
um
mary
.................................................................................................................................................................................i
i
Sec
tion
I: In
trod
uct
ion
..............................................................................................................................................................................
7
Sec
tion
II:
Dem
og
rap
hic
s .........................................................................................................................................................................9
Sec
tion
III
: Tr
an
sport
ati
on
Man
ag
emen
t Tr
end
s ...................................................................................................................................1
1
Sec
tion
IV
: Th
e R
ole
of
Vis
ibilit
y in
Glo
bal Tr
an
sport
ati
on
Man
ag
emen
t ............................................................................................
15
Sec
tion
V: Th
e R
ole
of
Su
pp
ly C
hain
Des
ign
in
Tra
nsp
ort
ati
on
Man
ag
emen
t .....................................................................................
21
Sec
tion
VI:
Tra
nsp
ort
ati
on
Man
ag
emen
t Te
chn
olo
gy
Tren
ds
...............................................................................................................2
4
Sec
tion
VII
: B
est
Pra
ctic
es ..
...................................................................................................................................................................2
7
Ap
pen
dix
A: A
bou
t O
ur
Sp
on
sors
..........................................................................................................................................................
28
> A
mbe
r R
oad
.....
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...28
> G
T N
exus
.....
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......
..28
Ap
pen
dix
B: A
bou
t O
ur
Part
ner
s ...........................................................................................................................................................2
9
> C
ounc
il of
Sup
ply
Cha
in M
anag
emen
t Pro
fess
iona
ls ..
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......
...29
> N
atio
nal R
etai
l Fed
erat
ion .
......
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.....
29
> R
etai
l Ind
ustr
y Le
ader
s A
ssoc
iatio
n ...
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.....
29
Ap
pen
dix
C: A
bou
t Am
eric
an S
hipp
er R
esea
rch
...................................................................................................................................3
0
Section I: Introduction
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
6
Figu
res
Fig
ure
1:
Indu
stry
Seg
men
ts ...
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9
Fig
ure
2:
Com
pany
Size
......
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..10
Fig
ure
3:
Job
Title
s Su
rvey
ed ...
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......
......
......
......
......
......
......
......
......
......
......
......
......
...10
Fig
ure
4:
Tran
spor
tatio
n M
anag
emen
t Res
pons
ibili
ty ..
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
...11
Fig
ure
5:
Tran
spor
tatio
n M
odes
Man
aged
by
TMS
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
....1
2
Fig
ure
6:
Tran
spor
tatio
n Sp
end .
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
..13
Fig
ure
7:
Tran
spor
tatio
n Pr
oduc
tivity
Tabl
e—M
anuf
actu
rers
vs.
Ret
aile
rs ..
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
...14
Fig
ure
8:
Addi
tiona
l Tra
nspo
rtatio
n Co
sts
Incu
rred
Due
to W
est C
oast
Por
t Con
gest
ion.
......
......
......
......
......
......
......
......
......
......
......
......
...15
Fig
ure
9:
Ship
pers
’ Defi
nitio
n of
Vis
ibili
ty 2
013-
2015
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
16
Fig
ure
10
: M
ost I
mpo
rtant
Ben
efit o
f Vis
ibili
ty ...
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
..17
Fig
ure
11
: Ha
rdes
t Mod
e to
Atta
in V
isib
ility
—M
anua
l vs.
Sys
tem
s-ba
sed
Ship
pers
.....
......
......
......
......
......
......
......
......
......
......
......
......
...17
Fig
ure
12
: Do
es V
isib
ility
Pro
vide
Qua
ntifi
able
ROI
? ..
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.....
18
Fig
ure
13
: W
hat S
yste
ms
Prov
ide
Visi
bilit
y In
put ..
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.....
19
Fig
ure
14
: Vi
sibi
lity—
Days
Prio
r to
Ship
men
t ....
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.20
Fig
ure
15
: Su
pply
Cha
in D
esig
n is
Crit
ical
to Tr
ansp
orta
tion
Man
agem
ent .
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
...21
Fig
ure
16
: Cu
rrent
Sup
ply
Chai
n De
sign
Tool
.....
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.22
Fig
ure
17
: Ca
rrier
Dat
a Qu
ality
By
Mod
e ....
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
...23
Fig
ure
18
: Gl
obal
Tran
spor
tatio
n M
anag
emen
t Pla
tform
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
..24
Fig
ure
19
: Bi
gges
t Ben
efits
of G
loba
l TM
S ...
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.25
Fig
ure
20
: Bi
gges
t Cha
lleng
es o
f Glo
bal T
MS .
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
.....
25
Fig
ure
21
: TM
S En
able
s Ea
sy M
ode
and
Rout
e Op
timiza
tion .
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
26
Section I: Introduction
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
7
Sec
tion
I: In
trod
uctio
n
Wel
com
e to
Am
eric
an S
hipp
er’s
sev
enth
ann
ual b
ench
mar
k st
udy
of g
loba
l
tran
spor
tatio
n m
anag
emen
t, pr
oduc
ed in
con
junc
tion
with
the
Nat
iona
l Ret
ail
Fede
ratio
n (N
RF)
, Ret
ail I
ndus
try
Lead
ers
Ass
ocia
tion
(RIL
A) a
nd th
e C
ounc
il of
Sup
ply
Cha
in M
anag
emen
t Pro
fess
iona
ls (C
SC
MP
). Th
is re
port
ann
ually
exa
min
es
the
tren
ds th
at im
pact
how
shi
pper
s an
d lo
gist
ics
serv
ice
prov
ider
s m
anag
e th
eir
inte
rnat
iona
l fre
ight
tran
spor
tatio
n pr
oces
ses,
and
the
tech
nolo
gy th
at h
elps
supp
ort t
hose
pro
cess
es.
Tran
spor
tatio
n m
anag
emen
t ha
s st
arte
d t
o m
ove
bey
ond
a n
uts-
and
-bol
ts
func
tion
for m
any
ship
pers
and
LS
Ps—
it is
the
hub
arou
nd w
hich
thes
e co
mpa
nies
orie
nt o
ther
key
sup
ply
chai
n pr
oces
ses.
Aga
inst
that
bac
kdro
p, th
is y
ear’
s st
udy
keen
ly e
xam
ines
the
elem
ents
of t
rans
port
atio
n m
anag
emen
t com
pani
es a
re
laye
ring
arou
nd s
impl
e pl
anni
ng a
nd e
xecu
tion.
Kee
p in
min
d, th
e va
st p
ropo
rtio
n of
res
pond
ents
to A
mer
ican
Shi
pper
res
earc
h
initi
ativ
es m
anag
e gl
obal
, oft
en h
ighl
y co
mpl
ex s
uppl
y ch
ains
. Run
ning
dai
ly la
ne
optim
izat
ions
and
bui
ldin
g lo
ad p
lans
are
nic
e, b
ut m
ostly
exp
ecte
d fu
nctio
ns o
f
a tr
ansp
orta
tion
man
agem
ent s
yste
m. G
loba
l shi
pper
s ne
ed v
isib
ility
and
net
wor
k
desi
gn p
latf
orm
s th
at w
ork
on a
con
tinuo
us b
asis
, allo
win
g th
em to
pla
n fu
rthe
r
upst
ream
and
rea
ct to
dis
rupt
ions
ups
trea
m o
r do
wns
trea
m.
The
stud
y in
clud
es th
e re
spon
ses
of 1
91 q
ualifi
ed g
loba
l log
istic
s pr
actit
ione
rs
who
par
ticip
ated
in th
e su
rvey
from
mid
-Mar
ch th
roug
h la
te A
pril.
It’s
impo
rtan
t
to r
ecog
nize
that
glo
bal t
rans
port
atio
n m
anag
emen
t is
a br
oad
term
that
cov
ers
the
full
cycl
e of
tran
spor
tatio
n ac
tivity
, inc
ludi
ng p
rocu
rem
ent,
plan
ning
, ord
er
man
agem
ent,
tend
erin
g, e
vent
man
agem
ent,
and
finan
cial
set
tlem
ent.
For
the
purp
oses
of t
his
stud
y, th
e fo
cus
is p
lace
d sp
ecifi
cally
on
the
stag
es in
volv
ing
plan
ning
thro
ugh
even
t man
agem
ent a
nd th
e vi
sibi
lity
into
eac
h le
g of
thos
e
proc
esse
s. P
rocu
rem
ent a
nd s
ettle
men
t are
pur
pose
ly s
et a
side
to fo
cus
on th
e
“blo
ckin
g an
d ta
cklin
g” o
f glo
bal l
ogis
tics
man
agem
ent.
Glo
bal s
hipp
ers
need
vis
ibili
ty a
nd n
etw
ork
de
sign
pla
tfor
ms
that
wor
k on
a c
ontin
uous
ba
sis,
allo
win
g th
em to
pla
n fu
rthe
r up
stre
am a
nd
reac
t to
disr
uptio
ns u
pstr
eam
or
dow
nstr
eam
.
Section I: Introduction
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
8
Rea
ders
of t
his
repo
rt s
houl
d al
so u
nder
stan
d th
at th
is b
ench
mar
king
initi
ativ
e
stric
tly p
erta
ins
to g
loba
l and
cro
ss-b
orde
r tr
ansp
orta
tion
man
agem
ent.
Qua
lified
resp
onde
nts
repr
esen
t a v
arie
ty o
f ind
ustr
y se
gmen
ts, i
nclu
ding
ret
ail,
man
ufac
-
turin
g, m
ater
ials
, and
third
-par
ty lo
gist
ics.
Res
pons
es fr
om c
arrie
rs, c
onsu
ltant
s,
tech
nolo
gy v
endo
rs, a
nd o
ther
unq
ualifi
ed r
espo
nden
ts a
re n
ot in
clud
ed in
the
aggr
egat
e da
ta p
rese
nted
of t
his
repo
rt.
Dis
trib
utio
n ch
anne
ls f
or
the
20-q
uest
ion
ben
chm
arki
ng s
urve
y in
clud
ed
Am
eric
an S
hipp
er’s
web
site
, e-m
ail l
ists
, and
new
slet
ters
. In
addi
tion,
NR
F, R
ILA
and
CS
CM
P m
embe
rs w
ere
invi
ted
to p
artic
ipat
e vi
a e-
mai
l pro
mot
ions
dire
ctly
from
thos
e as
soci
atio
ns. A
s a
polic
y, A
mer
ican
Shi
pper
doe
s no
t sha
re a
ny
indi
vidu
al s
urve
y re
spon
ses.
All
data
is d
ispl
ayed
in a
ggre
gate
onl
y.
This
rep
ort
mak
es fr
eque
nt c
omp
aris
ons
bet
wee
n sy
stem
s-b
ased
shi
pp
ers
and
man
ual s
hip
per
s. F
or t
he p
urp
oses
of r
ead
ing
this
rep
ort,
sys
tem
s-b
ased
ship
per
s ar
e th
ose
who
se t
rans
por
tatio
n m
anag
emen
t p
roce
sses
are
han
dle
d
pre
dom
inan
tly (b
ut n
ot n
eces
saril
y w
holly
) via
a T
MS
, whi
le m
anua
l shi
pp
ers
are
thos
e w
ho p
red
omin
antly
use
sp
read
shee
ts t
o m
anag
e th
e ex
ecut
ion
of
thei
r sh
ipm
ents
. It’
s im
por
tant
to
und
erst
and
tha
t sy
stem
s-b
ased
shi
pp
ers
are
not
com
ple
tely
aut
omat
ed, a
nd m
anua
l shi
pp
ers
use
bas
ic t
echn
olog
ies
in
thei
r b
usin
esse
s.
Qualif
ied
resp
ond
ents
rep
resent a v
ariety
of
ind
ustr
y s
egm
ents
,
inclu
din
g r
eta
il, m
anu -
factu
ring, m
ate
rials
, and
third
-part
y lo
gis
tics.
Section II: Demographics
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
9
Sec
tion
II: D
emog
raph
ics
The
typi
cal r
espo
nden
t poo
l for
Am
eric
an S
hipp
er r
esea
rch
initi
ativ
es is
eve
nly
com
pose
d of
man
ufac
ture
rs, r
etai
lers
, and
3P
Ls, a
nd th
is y
ear
is n
o di
ffere
nt, w
ith
an a
lmos
t eve
n br
eaku
p be
twee
n th
ose
thre
e gr
oups
. The
re is
, how
ever
, lar
ger
repr
esen
tatio
n fr
om g
roup
s ou
tsid
e of
thos
e th
ree
grou
ps, w
ith n
early
20
perc
ent
of r
esp
ond
ents
iden
tifyi
ng t
hem
selv
es a
s sh
ipp
ers
in t
he g
over
nmen
t, r
aw
mat
eria
ls, a
nd c
omm
oditi
es s
ecto
rs.
191
tota
l res
pond
ents
30%
13%
3PL/
Forw
ard
er/N
VO
CC
/Int
erm
edia
ry
Ret
ail/W
hole
sale
Dis
cret
e m
anuf
actu
ring
Pro
cess
man
ufac
turin
g
Raw
mat
eria
ls/C
omm
oditi
es
Gov
ernm
ent/
Pub
lic S
ecto
r
Eng
inee
ring/
Con
stru
ctio
n/E
nerg
y
9%
15%
4%5%
24%
Fig
ure
1:
Ind
ustr
y S
eg
me
nts
Section II: Demographics
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
10
Alm
ost t
ypic
al fo
r an
Am
eric
an S
hipp
er b
ench
mar
k re
port
is th
e br
eaku
p by
com
pany
siz
e, w
ith n
early
40
perc
ent o
f com
pani
es p
artic
ipat
ing
havi
ng $
1 bi
llion
or m
ore
in r
even
ue. T
his
stud
y m
akes
com
paris
ons
betw
een
the
way
$1
billi
on-
plus
com
pani
es h
andl
e tr
ansp
orta
tion
man
agem
ent v
ersu
s th
e w
ay c
ompa
nies
with
rev
enue
of l
ess
than
$1
billi
on d
o. O
ur r
esea
rch
has
foun
d th
at th
is is
a k
ey
line
of d
emar
catio
n in
term
s of
shi
pper
and
LS
P b
ehav
ior
and
tech
nolo
gy u
sage
.
Nea
rly h
alf o
f res
pond
ents
sur
veye
d fo
r th
is r
epor
t are
in m
anag
eria
l rol
es, w
hile
a qu
arte
r ar
e in
the
exec
utiv
e- o
r C
-lev
el, a
nd a
noth
er n
early
20
perc
ent a
re a
t
the
dire
ctor
leve
l. Th
is le
vel o
f upp
er m
anag
emen
t par
ticip
atio
n is
in li
ne w
ith
mos
t Am
eric
an S
hipp
er r
esea
rch
initi
ativ
es.
189
tota
l res
pond
ents
13%
10%
C-L
evel
(CE
O,C
IO,C
FO, e
tc)
Exe
cutiv
e (S
VP,
VP,
GM
, etc
.)
Dire
ctor
Man
ager
Sta
ff
12%
48%
18%
Fig
ure
3:
Jo
b T
itle
s S
urv
eye
d
189
tota
l res
pond
ents
38%
Gre
ater
tha
n $1
bill
ion
$100
mill
ion
to $
1 b
illio
n
Less
tha
n $1
00 m
illio
n
31%
31%
Fig
ure
2:
Co
mp
an
y S
ize
Section III: Transportation Management Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
11
Sec
tion
III
: Tr
ansp
orta
tion
M
anag
emen
t Tre
nds
Aro
und
tw
o-th
irds
of r
esp
ond
ents
for
this
rep
ort
have
res
pon
sib
ility
for
dom
estic
and
inte
rnat
iona
l tra
nsp
orta
tion.
Tha
t spe
aks
to th
e co
mpl
exity
that
man
y di
rect
ors
and
VP
s of
tran
spor
tatio
n fa
ce in
thei
r ro
les,
ove
rsee
ing
a ra
nge
of m
odes
and
geo
grap
hies
and
oft
en ju
gglin
g m
ultip
le s
yste
ms
to m
anag
e
thos
e m
odes
. Our
ane
cdot
al r
esea
rch
into
the
man
agem
ent
of g
lob
al a
nd
dom
estic
tra
nsp
orta
tion
ind
icat
es t
hat
even
whe
n co
mp
anie
s ta
ke a
n in
te-
grat
ed a
pp
roac
h to
end
-to-
end
frei
ght
tran
spor
tatio
n, t
he t
wo
pro
cess
es a
re
ofte
n ke
pt
apar
t an
d h
and
led
by
sep
arat
e te
ams,
usi
ng d
iffer
ent
syst
ems
that
rare
ly in
tera
ct in
a w
ay d
esig
ned
to
func
tiona
lly im
pro
ve t
he w
hole
.
0%10%
20%
30%
40%
50%
60%
70%
80%
I am
res
pon
sib
lefo
r d
omes
ticm
anag
emen
t on
ly
I am
res
pon
sib
lefo
r in
tern
atio
nal
man
agem
ent
only
I am
res
pon
sib
le fo
rin
tern
atio
nal a
ndd
omes
tic m
anag
emen
t
62%
69%
8%
36%
Larg
e S
hip
per
s
Sm
all/M
ediu
m S
hip
per
s
22%
2%
Fig
ure
4:
Tra
nsp
ort
ati
on
Ma
na
ge
me
nt
Re
sp
on
sib
ilit
y
191
tota
l res
pond
ents
0%10%
20%
30%
40%
50%
60%
70%
80%
I am
res
pon
sib
lefo
r d
omes
ticm
anag
emen
t on
ly
I am
res
pon
sib
lefo
r in
tern
atio
nal
man
agem
ent
only
I am
res
pon
sib
le fo
rin
tern
atio
nal a
ndd
omes
tic m
anag
emen
t
54%
72%
68%
7%9%
26%
37%
Man
ufac
ture
rs
Ret
aile
rs
3PLs
25%
2%
Section III: Transportation Management Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
12
This
is p
artly
due
to
the
inna
te d
iffer
ence
s in
the
way
glo
bal
and
dom
estic
mod
es a
re p
rocu
red
and
man
aged
. Som
e en
terp
risin
g co
mp
anie
s ha
ve k
ey
per
sonn
el s
witc
h ro
les
to g
et a
bet
ter
und
erst
and
ing
of t
he is
sues
face
d b
y th
e
othe
r. F
ig. 4
, how
ever
, ind
icat
es t
hat
com
pan
ies
do
have
a p
erso
n or
tea
m
resp
onsi
ble
for
over
all t
rans
por
tatio
n m
anag
emen
t m
ore
ofte
n th
an w
e ex
per
i-
ence
in o
ur d
iscu
ssio
ns w
ith s
hip
per
s. T
he d
ivid
e is
see
n m
ost
keen
ly b
etw
een
reta
ilers
and
man
ufac
ture
rs/3
PLs
, with
bar
ely
half
of r
etai
lers
man
agin
g b
oth
sets
of m
odes
.
Ab
out
half
of t
he r
esp
ond
ents
to
this
sur
vey
ind
icat
e th
ey u
se a
tra
nsp
orta
tion
man
agem
ent
syst
em, a
nd o
f tho
se, F
ig. 5
sho
ws
whi
ch m
odes
the
y m
anag
e.
A m
ajor
ity o
f TM
S u
sers
em
plo
y th
e sy
stem
to
man
age
at le
ast
five
mod
es,
and
give
n th
e in
tern
atio
nal f
ocus
of m
ost c
ompa
nies
sur
veye
d, it
’s li
ttle
sur
pris
e to
see
ocea
n, a
irfre
ight
and
LC
L am
ong
thos
e m
ost w
idel
y m
anag
ed b
y a
syst
em.
As
we’
ve r
epor
ted
in t
he p
ast,
TM
S h
ad la
rgel
y b
een
seen
as
a d
omes
tic t
ool
that
has
bee
n sh
oeho
rned
into
inte
rnat
iona
l env
ironm
ents
but
tha
t p
erce
ptio
n
has
stea
dily
cha
nged
sin
ce w
e b
egan
ben
chm
arki
ng s
hip
per
s si
x ye
ars
ago.
Shi
pp
ers
and
LS
Ps
see
a TM
S a
s a
tool
tha
t sh
ould
be
used
to
pla
n gl
obal
tran
spor
tatio
n m
oves
and
exe
cute
tho
se p
lans
.
0%10
%20
%30
%40
%50
%60
%70
%80
%
Oth
er (p
leas
e sp
ecify
)
Oce
an T
rans
por
t (o
ther
, non
-con
tain
eriz
ed)
Par
cel/S
mal
l Pac
kage
Rai
l/Int
erm
odal
LCL
Oce
an
Airf
reig
ht
Truc
kloa
d
Less
tha
n Tr
uckl
oad
(LTL
)
FCL
Oce
an
56%
46%
56%
57
%
75%
43%
62%
39%
11%
Fig
ure
5:
Tra
nsp
ort
ati
on
Mo
de
s M
an
ag
ed
by T
MS
91 to
tal r
espo
nden
ts
Section III: Transportation Management Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
13
Litt
le s
urp
rise
in F
ig. 6
: lar
ge s
hip
per
s m
anag
e a
lot
of fr
eigh
t sp
end
. Mor
e
surp
risin
g: th
at s
o m
any
smal
l shi
pper
s sp
end
less
than
$10
mill
ion
on fr
eigh
t. It
spea
ks to
the
dive
rsity
of o
pera
tions
that
LS
Ps
and
carr
iers
acr
oss
all m
odes
mus
t
cate
r to
. In
the
TMS
wor
ld, i
t als
o m
eans
tech
nolo
gy p
rovi
ders
—be
it 3
PLs
or
outr
ight
sof
twar
e ve
ndor
s—ha
ve t
o d
ecid
e w
hich
mar
ket
thei
r p
rod
ucts
are
bes
t su
ited
to,
or
whe
ther
the
y ca
n re
alis
tical
ly t
arge
t sh
ipp
ers
of m
ultip
le s
izes
and
com
ple
xitie
s. A
shi
pp
er w
ith m
ore
than
$10
0 m
illio
n in
frei
ght s
pend
doe
sn’t
just
hav
e 10
tim
es th
e sp
end
of o
ne w
ith $
10 m
illio
n. It
s ne
twor
k is
like
ly e
xpo-
nent
ially
mor
e co
mp
lex,
its
tran
spor
tatio
n d
epar
tmen
t lik
ely
muc
h la
rger
and
pot
entia
lly m
ore
silo
ed. S
mar
t ve
ndor
s an
d L
SP
s kn
ow t
he m
arke
ts w
here
the
ir
offe
rings
are
mos
t re
leva
nt, a
nd d
on’t
ove
rrea
ch in
mar
kets
whe
re t
here
’s li
kely
to b
e lit
tle a
ccep
tanc
e of
the
ir p
rod
ucts
.
For
inst
ance
, sof
twar
e-as
-a-s
ervi
ce v
end
ors
are
muc
h m
ore
likel
y to
tar
get
smal
l to
mid
dle
-mar
ket
ship
per
s an
d L
SP
s w
ith a
TM
S s
ince
the
up
fron
t co
sts
are
low
er, t
he im
ple
men
tatio
n te
nds
to b
e q
uick
er, a
nd r
obus
tnes
s of
the
syst
em is
not
as
imp
orta
nt a
s th
e ab
ility
to
qui
ckly
cre
ate
a ne
twor
k ef
fect
amon
g its
sup
ply
cha
in p
artn
ers.
Larg
er s
hip
per
s ar
e m
ore
likel
y to
eye
a s
yste
m t
hat
can
crun
ch h
uge
amou
nts
of d
ata,
run
nea
rly c
ontin
uous
wha
t-if
scen
ario
s, a
nd c
reat
e st
ocha
stic
mod
els
for
thei
r tr
ansp
orta
tion
netw
orks
. The
ir ne
eds
are
so c
ompl
ex th
at th
e po
tent
ially
long
er a
nd c
ostli
er im
ple
men
tatio
n is
mor
e th
an o
ffse
t b
y th
e p
ower
of t
he
optim
izat
ion
engi
nes.
49%
5%
46%
Mor
e th
an $
100
mill
ion
per
yea
r
Bet
wee
n $1
0 an
d
$100
mill
ion
per
yea
r
Less
tha
n $1
0 m
illio
n p
er y
ear
42%
58%
Fig
ure
6:
Tra
nsp
ort
ati
on
Sp
en
d
134
tota
l res
pond
ents
La
rge S
hip
pers
Sm
all/M
ed
ium
Sh
ipp
ers
Section III: Transportation Management Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
14
Man
ufac
ture
rs h
and
le m
ore
inte
rnat
iona
l pur
chas
e or
der
s th
an t
heir
reta
iler
peer
s, b
ut a
lso
use
twic
e th
e nu
mb
er o
f peo
ple
to m
anag
e th
ose
orde
rs. I
ndee
d,
Fig.
7 s
ugge
sts
that
des
pite
the
imp
orta
nce
reta
ilers
pla
ce o
n tr
ansp
orta
tion,
thei
r te
ams
are
run
with
lean
er s
taff
s th
an a
t m
anuf
actu
rers
. Thi
s is
like
ly d
ue
to a
hig
her
relia
nce
on L
SP
s b
y re
taile
rs—
whi
le a
lmos
t ev
ery
ship
per
usi
ng a
logi
stic
s co
mp
anie
s fo
r so
me
face
t of
the
ir su
pp
ly c
hain
, ret
aile
rs in
par
ticul
ar
lean
on
3PL
and
forw
ard
ers
to m
anag
e cr
itica
l asp
ects
of t
heir
glob
al o
per
a-
tions
, esp
ecia
lly s
ecur
ing
cap
acity
and
exe
cutiv
e d
omes
tic m
oves
ove
rsea
s,
as w
ell a
s p
rovi
din
g vi
sib
ility
in fa
r flu
ng lo
cale
s.
133
tota
l res
pond
ents
0
1,00
0
2,00
0
3,00
0
4,00
0
5,00
0
6,00
0
7,00
0
8,00
0
9,00
0
10,0
00
Ret
aile
rsM
anuf
actu
rers
8,58
6
6,13
9
0510152025
20.2
Man
ufac
ture
rs
9.1
Ret
aile
rs
Fig
ure
7:
Tra
nsp
ort
ati
on
Pro
du
cti
vit
y T
ab
le—
Ma
nu
fac
ture
rs v
s.
Re
tail
ers
Inte
rna
tio
na
l P
urc
ha
se O
rders
Ma
na
ged
Per
Yea
rH
ea
dco
un
t A
ssig
ned
to
Ma
na
gin
g I
nte
rna
tio
na
l S
hip
men
ts
This
yea
r, r
esp
ond
ents
wer
e as
ked
to
estim
ate
the
extr
a co
sts
incu
rred
to
over
com
e ob
stac
les
rela
ted
to
por
t co
nges
tion
at W
est
Coa
st p
orts
in t
he
seco
nd h
alf o
f 201
4 an
d e
arly
201
5. W
hile
nea
rly 9
0 p
erce
nt s
aid
the
y w
ere
imp
acte
d c
ost-
wis
e b
y th
e co
nges
tion,
aro
und
a t
hird
sai
d t
he im
pac
t w
as le
ss
than
5 p
erce
nt o
ver
thei
r ex
pec
ted
tra
nsp
orta
tion
spen
d. H
owev
er, n
early
a
third
of r
esp
ond
ents
sai
d t
he c
onge
stio
n ca
used
cos
t im
pac
ts o
f 10
per
cent
or
mor
e. T
his
jives
with
rec
ent
rese
arch
con
duc
ted
by
Am
eric
an S
hip
per
in M
arch
whi
ch fo
und
tha
t m
ore
than
95
per
cent
of s
hip
per
s w
ere
affe
cted
by
the
cong
estio
n, w
ith m
ore
than
hal
f sev
erel
y af
fect
ed.
Section IV: The Role of Visibility in Global Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
15
Sec
tion
IV
: The
Rol
e of
Vis
ibili
ty in
Glo
bal
Tran
spor
tatio
n M
anag
emen
t
Tran
spor
tatio
n vi
sibi
lity
has
mov
ed fr
om a
nic
e-to
-hav
e fe
atur
e to
nee
d-to
-hav
e
elem
ent f
or m
ost s
hipp
ers
and
LSP
s. It
’s r
are
for
Am
eric
an S
hipp
er to
talk
to a
ship
per
that
doe
sn’t
have
or
wan
t som
e fo
rm o
f vis
ibili
ty. G
ener
ally
, tha
t boi
ls
dow
n to
kno
wle
dge
abou
t cer
tain
key
mile
ston
es fo
r in
-tra
nsit
carg
o.
The
divi
ding
poi
nt o
n vi
sibi
lity
is w
hat c
omes
nex
t. La
st y
ear,
the
them
e of
this
repo
rt c
ente
red
on th
e id
ea th
at s
hipp
ers
and
LSP
s ou
ght t
o be
str
ivin
g fo
r m
ore
usef
ul v
isib
ility
—no
t “w
here
’s m
y st
uff,”
but
“w
hat d
o I d
o if
ther
e’s
a pr
oble
m
with
my
stuf
f.”
141
tota
l res
pond
ents
0%5%10%
15%
20%
25%
30%
35%
40%
We
did
n't
incu
r an
yex
tra
cost
Mor
e th
an25
per
cent
20-2
5p
erce
nt16
-20
per
cent
11-1
5p
erce
nt5-
10p
erce
ntLe
ss t
han
5 p
erce
nt
25%
33%
14%
9%12
%
4%4%
Fig
ure
8:
Ad
dit
ion
al
Tra
nsp
ort
ati
on
Co
sts
In
cu
rre
d D
ue
to
We
st
Co
ast
Po
rt C
on
ge
sti
on
Fig.
8 s
how
s th
at r
espo
nden
ts h
ave
gene
rally
take
n a
mor
e so
phis
ticat
ed v
iew
of v
isib
ility
the
past
two
year
s. T
hat m
eans
they
see
vis
ibili
ty a
s m
ore
than
trac
k
and
tra
ce, a
nd e
ven
mor
e th
an e
xcep
tion-
bas
ed m
anag
emen
t. A
nced
otal
ly,
we
are
hear
ing
mor
e th
an e
ver
that
shi
pper
s w
ant a
con
trol
tow
er (t
he e
volu
tion
of th
e 4P
L co
ncep
t) to
ove
rsee
thei
r gl
obal
tran
spor
tatio
n ne
twor
k. A
nd im
por-
tant
ly, v
isib
ility
for
mor
e th
an h
alf
of s
hip
per
s en
com
pas
ses
mor
e th
an ju
st
tran
spor
tatio
n—it
stre
tche
s fr
om t
he m
omen
t a
pur
chas
e or
der
is c
ut t
o
dis
trib
utio
n or
eve
n st
ore
del
iver
y.
Section IV: The Role of Visibility in Global Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
16
Shi
pper
s ha
ve m
any
mot
ivat
ions
for
seek
ing
visi
bilit
y, b
ut th
e on
e th
at tr
umps
them
all
is th
e ab
ility
to r
espo
nd to
dis
rupt
ions
in th
eir
supp
ly c
hain
. Thi
s is
whe
re
ship
pers
hav
e ev
olve
d fr
om th
e “w
here
’s m
y st
uff”
men
talit
y. T
hat o
ld-f
ashi
oned
view
allo
wed
shi
pp
ers
to k
now
whe
n sh
ipm
ents
wer
e hu
ng u
p, b
ut it
did
n’t
pro
vid
e th
em w
ith m
uch
abili
ty t
o re
dire
ct t
he fl
ow o
f the
ir ca
rgo.
It le
ft t
hem
mor
e kn
owle
dge
able
, but
no
mor
e ag
ile.
Usi
ng v
isib
ility
to r
eact
to d
isru
ptio
ns in
volv
es in
tegr
atin
g vi
sibi
lity
with
pla
nnin
g
and
exe
cutio
n, s
o th
at p
ort
cong
estio
n in
Sou
ther
n C
alifo
rnia
aff
ectin
g a
ship
men
t cat
alyz
es a
pro
cess
whe
re a
noth
er m
ode
or g
eogr
aphy
is s
ough
t,
optim
ized
, and
exe
cute
d.
Fig.
10
also
sho
ws
that
the
valu
e of
vis
ibili
ty is
impo
rtan
t eve
n w
hen
ther
e is
no
disr
uptio
n or
cris
is. H
avin
g a
view
of s
hipm
ents
in tr
ansi
t allo
ws
a sh
ippe
r or
LS
P
to e
nsur
e th
eir
netw
ork
is r
unni
ng e
ffici
ently
and
pro
perly
aga
inst
tran
spor
tatio
n
plan
s. R
espo
nden
ts h
ave
over
whe
lmin
gly
indi
cate
d th
at v
isib
ility
is n
ot p
rimar
ily
abou
t red
uced
cos
ts o
f low
erin
g in
vent
ory.
That
last
pie
ce is
som
ewha
t sur
pris
ing,
sin
ce th
e ra
tiona
le b
ehin
d m
akin
g a
netw
ork
mor
e ef
fect
ive
is o
ften
to r
educ
e in
vent
ory
carr
ying
cos
ts. P
erha
ps th
e
resu
lts in
this
figu
re s
peak
to th
e na
ture
of t
he r
espo
nsib
ility
of r
espo
nden
ts—
thos
e ta
sked
with
tran
spor
tatio
n se
e vi
sibi
lity
as a
tran
spor
tatio
n-re
late
d fu
nctio
n,
not a
n in
vent
ory-
redu
ctio
n fu
nctio
n.
0%10%
20%
30%
40%
50%
60%
All
of t
he a
bov
e al
ong
with
bus
ines
s in
telli
genc
ean
d a
naly
tics
tool
s
True
end
-to-
end
view
of m
ysu
pp
ly c
hain
Sim
ple
tra
ckan
d t
race
Acc
ess
to b
asic
ship
men
t d
etai
ls
17%
16%
22%
32%
25%
27%
18%
2015
2014
2013
48%
24%
24%
40%
4%
Fig
ure
9:
Sh
ipp
ers
’ D
efi
nit
ion
of
Vis
ibil
ity 2
01
3-2
01
5
121
tota
l res
pond
ents
Section IV: The Role of Visibility in Global Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
17
A k
ey q
uest
ion
to c
onsi
der
whe
n un
ders
tand
ing
the
valu
e of
vis
ibili
ty is
kno
win
g
whe
re th
e bl
ind
spot
s ar
e. O
r to
put
it a
noth
er w
ay, v
isib
ility
is n
ot c
onsi
sten
t
acro
ss a
ll m
odes
. Fig
. 11
show
s th
at s
hipp
ers
usin
g a
syst
em to
han
dle
tran
spor
-
tatio
n m
anag
emen
t cite
oce
an a
nd d
raya
ge a
s th
e ha
rdes
t mod
es in
whi
ch to
capt
ure
visi
bilit
y. M
eanw
hile
, man
ual s
hipp
ers
pred
omin
antly
see
LC
L as
the
hard
est m
ode,
like
ly b
ecau
se m
anua
l shi
pper
s ar
e sm
alle
r, m
ore
relia
nt o
n LC
L,
and
less
like
ly to
hav
e a
visi
bilit
y pl
atfo
rm.
0%5%10%
15%
20%
25%
30%
35%
40%
Red
uced
inve
ntor
yca
rryi
ng c
osts
Red
uced
tran
spor
tatio
nco
sts
Rel
iab
ility
of
carg
o flo
wN
etw
ork
effic
ienc
yA
bili
ty t
o re
spon
dto
dis
rup
tions
33%
35%
20%
3%
10%
Fig
ure
10
: M
ost
Imp
ort
an
t B
en
efi
t o
f V
isib
ilit
y
116
tota
l res
pond
ents
0%10
%20
%30
%40
%50
%60
%70
%
Rai
l
Par
cel
Truc
kloa
d
Air
Less
tha
n tr
uckl
oad
(LTL
)
Full
cont
aine
rload
(FC
L)
Dra
yage
Less
tha
n co
ntai
nerlo
ad (L
CL)
5% 7%
0% 3%
5% 8%
9%
5%
9% 18
%
64
%29
%
Man
ual S
hip
per
s
Sys
tem
s-b
ased
Shi
pp
ers
0% 10
%
9% 20
%
Fig
ure
11
: H
ard
est
Mo
de
to
Att
ain
Vis
ibil
ity—
Ma
nu
al
vs.
Syste
ms-b
ase
d S
hip
pe
rs
121
tota
l res
pond
ents
Section IV: The Role of Visibility in Global Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
18
Truc
k m
odes
wer
e, n
o su
rpris
e, h
ardl
y ci
ted,
sin
ce v
isib
ility
pla
tfor
ms
gene
rally
do a
goo
d jo
b of
cap
turin
g ke
y m
ilest
ones
on
dom
estic
mod
es.
Res
pond
ents
to th
is y
ear’
s su
rvey
wer
e le
ss e
nthu
sias
tic a
bout
the
RO
I the
y
rece
ive
from
vis
ibili
ty th
an in
last
yea
r’s
repo
rt. W
here
as 5
1 pe
rcen
t of s
yste
ms-
base
d sh
ippe
rs a
nd 2
4 pe
rcen
t of m
anua
l shi
pper
s sa
id th
ey c
an q
uant
ify th
e
RO
I the
y ge
t fro
m v
isib
ility
in 2
014,
onl
y 35
per
cent
and
18
perc
ent,
resp
ectiv
ely,
said
the
sam
e th
is y
ear.
Aro
und
a th
ird in
bot
h ca
tego
ries
are
unce
rtai
n ab
out t
he
RO
I the
y ge
t, m
argi
nally
hig
her
than
in 2
014.
Ret
aile
rs, m
eanw
hile
, are
fare
mor
e lik
ely
to u
nder
stan
d th
e R
OI o
f vis
ibili
ty th
an
man
ufac
ture
rs, a
nod
to th
e im
port
ance
of g
ettin
g re
liabl
e da
ta a
bout
inbo
und
ship
men
ts fr
om s
uppl
iers
and
oth
er th
ird p
artie
s.
0%5%10%
15%
20%
25%
30%
35%
40%
N/A
—W
e ha
veno
t m
ade
any
inve
stm
ents
in v
isib
ility
Str
ongl
yd
isag
ree
Dis
agre
eU
ncer
tain
Agr
eeS
tron
gly
agre
e
0%
7%
31%
18%
Man
ual S
hip
per
s
Sys
tem
s-b
ased
Shi
pp
ers
28%
32%
9%9%
5%5%
36%
19%
Fig
ure
12
: D
oe
s V
isib
ilit
y P
rovid
e Q
ua
nti
fia
ble
RO
I?
119
tota
l res
pond
ents
0%5%10%
15%
20%
25%
30%
35%
40%
N/A
—W
e ha
veno
t m
ade
any
inve
stm
ents
in v
isib
ility
Str
ongl
yd
isag
ree
Dis
agre
eU
ncer
tain
Agr
eeS
tron
gly
agre
e
3%
7%
18%
Man
ufac
ture
rs
Ret
aile
rs
38%
32%
32%
8%
4%3%
4%
37%
18%
Section IV: The Role of Visibility in Global Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
19
As
one
TMS
ven
dor
rece
ntly
put
it to
us,
com
pani
es c
an u
nder
stan
d th
e be
nefit
s
of v
isib
ility
if th
ey a
ttac
h m
etric
s to
it, b
ut it
is a
har
der
func
tion
to m
easu
re d
olla
r
valu
e th
an in
an
area
like
pro
cure
men
t. A
maj
or m
anuf
actu
rer
told
us
it pl
aces
a
grea
t em
phas
is o
n kn
owin
g w
hat t
he v
alue
of v
isib
ility
is b
ecau
se th
at ju
stifi
es
the
busi
ness
cas
e fo
r co
ntin
uing
to in
vest
in r
obus
t glo
bal v
isib
ility
. As
with
man
y
thin
gs, t
he v
alue
of t
he o
utpu
t of v
isib
ility
is la
rgel
y de
pend
ent o
n th
e ef
fort
and
inve
stm
ent p
ut in
upf
ront
.
Fig.
13
show
s cl
early
how
com
plex
it c
an b
e to
cob
ble
toge
ther
the
data
req
uire
d
to p
rovi
de tr
ue v
isib
ility
. Dat
a is
pul
led
from
mul
tiple
sys
tem
s (b
oth
inte
rnal
and
exte
rnal
), an
d th
is c
hart
doe
sn’t
even
get
at t
he d
ifficu
lties
inhe
rent
in in
tegr
ated
this
dat
a in
a s
ingl
e pl
atfo
rm. T
o be
sur
e, th
is is
a s
ellin
g po
int f
or v
isib
ility
ven
dors
(man
y of
who
offe
r a
TMS
). A
shi
pper
wan
ting
to ta
ckle
this
on
thei
r ow
n ty
pica
lly
need
s to
pul
l dat
a fr
om m
ultip
le T
MS
s, th
eir
ER
P, t
heir
carr
iers
and
3P
Ls. I
t’s a
maj
or ta
sk, a
nd o
ne th
at is
larg
ely
unne
cess
ary
sinc
e m
ost T
MS
pla
tform
s pr
ovid
e
this
func
tiona
lity
as a
n in
tegr
ated
offe
ring.
0%10
%20
%30
%40
%50
%60
%
Inte
rnat
iona
l Tra
nsp
orta
tion
Man
agem
ent
Sys
tem
(ITM
S)
War
ehou
se M
anag
emen
t S
yste
m (W
MS
)
Inve
ntor
y M
anag
emen
t S
yste
m
Oce
an B
ooki
ng P
orta
l
Dom
estic
Tra
nsp
orta
tion
Man
agem
ent
Sys
tem
(TM
S)
N/A
—W
e d
o no
t ha
ve a
sys
tem
tha
t p
rovi
des
vis
ibili
ty
3PL/
Man
aged
ser
vice
ER
P
Man
ufac
ture
rs
Ret
aile
rs
50
%
27%
30%
46
%
28
%
8%
28
%
23%
23%
35
%
20%
27
%
15%
35
%
15%
27
%
Fig
ure
13
: W
ha
t S
yste
ms P
rovid
e V
isib
ilit
y I
np
ut
118
tota
l re
spon
dent
s
Section IV: The Role of Visibility in Global Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
20
Sop
hist
icat
ed r
etai
lers
put
a p
rem
ium
on
havi
ng v
isib
ility
all
the
way
bac
k to
the
purc
hase
ord
er, h
ence
why
they
tend
to h
ave
grea
ter
visi
bilit
y pr
ior
to s
hipm
ent
than
man
ufac
ture
rs. A
nd li
ttle
sur
pris
e th
at s
yste
ms-
base
d sh
ippe
rs h
ave
a 50
perc
ent l
onge
r he
ad s
tart
than
man
ual s
hipp
ers.
131
tota
l res
pond
ents
02468101214161820
Sys
tem
-bas
edM
anua
lR
etai
lers
Man
ufac
ture
rs
18
13
9
14
Fig
ure
14
: V
isib
ilit
y—
Da
ys P
rio
r to
Sh
ipm
en
t
Section V: The Role of Supply Chain Design in Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
21
Sec
tion
V: Th
e Ro
le o
f Sup
ply
Chai
n De
sign
in
Tran
spor
tatio
n M
anag
emen
t
This
yea
r’s
repo
rt, f
or th
e fir
st ti
me,
sou
ght t
o ga
ther
per
spec
tive
on th
e us
e of
supp
ly c
hain
des
ign
tool
s on
tran
spor
tatio
n m
anag
emen
t. S
uppl
y ch
ain
desi
gn
as a
dis
cip
line
abov
e d
ay-t
o-d
ay p
lann
ing
and
exe
cutin
g ha
s b
een
gain
ing
mom
entu
m in
rec
ent y
ears
. The
mom
entu
m h
as b
een
driv
en b
y ce
rtai
n sh
ippe
rs’
desi
re to
per
form
virt
ually
con
tinuo
us n
etw
ork
desi
gn s
cena
rios
to d
rive
deci
sion
s
abou
t eve
ryth
ing
from
whe
re to
loca
te a
dis
trib
utio
n ce
nter
, whi
ch c
ount
ry to
sour
ce g
oods
, or
whi
ch m
ode
to u
se.
Thes
e to
ols
prov
ide
a hi
gher
leve
l of d
esig
n th
an r
oute
pla
nnin
g op
timiz
atio
ns,
and
cert
ainl
y to
uch
area
s fa
r be
yond
the
reac
h of
str
ict t
rans
port
atio
n m
anag
e-
men
t. B
ut m
any
desi
gn to
ols
are
boug
ht in
con
junc
tion
with
a T
MS
, or
are
boug
ht
with
tig
ht in
tegr
atio
n to
a T
MS
in m
ind
. Aft
er a
ll, b
uild
ing
an id
eal n
etw
ork
is
mer
ely
an a
cade
mic
exe
rcis
e if
that
des
ign
can’
t be
exec
uted
on.
Fig.
15
show
s th
at th
e gr
and
maj
ority
of r
espo
nden
ts s
ee s
uppl
y ch
ain
desi
gn a
s
an im
port
ant p
art o
f tra
nspo
rtat
ion
man
agem
ent.
This
cha
rt s
how
s al
l res
pond
ents
in a
ggre
grat
e, in
clud
ing
ship
pers
and
LS
Ps.
0%5%10%
15%
20%
25%
30%
35%
40%
45%
50%
Str
ongl
yd
isag
ree
Dis
agre
eN
eutr
alA
gree
Str
ongl
yag
ree
42%
42%
11%
3%3%
Fig
ure
15
: S
up
ply
Ch
ain
De
sig
n i
s C
riti
ca
l to
Tra
nsp
ort
ati
on
Ma
na
ge
me
nt
118
tota
l res
pond
ents
Section V: The Role of Supply Chain Design in Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
22
How
ever
, the
re’s
a c
lear
dic
hoto
my
betw
een
wha
t res
pond
ents
per
ceiv
e to
be
impo
rtan
t, an
d w
hat d
esig
n ca
pabi
lity
they
act
ually
hav
e. N
early
two-
third
s of
resp
ond
ents
don
’t h
ave
the
abili
ty t
o d
esig
n th
eir
sup
ply
cha
in o
utsi
de
the
day
-to-
day
pla
nnin
g an
d e
xecu
ting
of t
hat
sup
ply
cha
in. G
iven
the
too
ls o
ut
ther
e—no
t ju
st s
oftw
are
tool
s th
at le
t a
ship
per
or
LSP
con
duc
t th
is e
xerc
ise
them
selv
es, b
ut a
lso
cons
ulta
tive
firm
s th
at p
rovi
de
sup
ply
cha
in d
esig
n
serv
ices
—th
is s
eem
s to
be
a m
ajor
hol
e in
mod
ern
supp
ly c
hain
s. F
ewer
than
one
in fi
ve r
espo
nden
ts u
se a
third
par
ty s
ervi
ce o
r to
ol to
hel
p m
anag
e th
is
incr
easi
ngly
impo
rtan
t fun
ctio
n. J
uxta
pose
that
with
mor
e th
an fo
ur in
five
say
ing
supp
ly c
hain
des
ign
is im
port
ant.
Whi
le d
ata
qua
lity
is c
ritic
al t
o ne
arly
eve
ry a
spec
t of
tra
nsp
orta
tion
man
age-
men
t, it
is e
spec
ially
vita
l in
term
s of
net
wor
k d
esig
n (w
heth
er t
hat’
s co
nfine
d
stric
tly t
o tr
ansp
orta
tion
or a
tru
e en
d-t
o-en
d s
upp
ly c
hain
per
spec
tive)
.
Sim
ply
put
, a d
esig
n ex
erci
se is
onl
y b
enefi
cial
if t
he d
ata
und
erly
ing
it is
accu
rate
and
com
ple
te.
115
tota
l res
pond
ents
0%10%
20%
30%
40%
50%
60%
70%
We
do n
ot c
urre
ntly
use
a s
uppl
y
chai
n de
sign
tool
Use
a s
uppl
y ch
ain
desi
gn m
odul
e
with
in o
ur T
MS
3PL
hand
les
this
func
tion
Tool
from
a s
uppl
y
chai
n de
sign
softw
are
prov
ider
Inte
rnal
ly
deve
lope
d to
ol
8%
18%
6%5%
63%
Fig
ure
16
: C
urr
en
t S
up
ply
Ch
ain
De
sig
n T
oo
l
Section V: The Role of Supply Chain Design in Transportation Management
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
23
We’
ve a
sked
in p
ast y
ears
for
resp
onde
nts
to c
hara
cter
ize
the
qual
ity o
f dat
a
they
rec
eive
from
car
riers
in d
iffer
ent m
odes
. Thi
s ye
ar, w
e’ve
fram
ed th
is v
iew
in a
sup
ply
chai
n de
sign
con
text
. And
Fig
. 17
show
s th
at m
ost r
espo
nden
ts s
ee
thei
r ca
rrie
r da
ta a
s go
od o
r av
erag
e. A
irfre
ight
car
riers
rat
e th
e hi
ghes
t in
term
s
of d
ata
qual
ity, w
ith r
ail a
nd in
term
odal
pro
vide
rs a
mon
g th
e lo
wes
t.
A d
amni
ng in
dict
men
t of c
arrie
rs a
cros
s al
l mod
es is
the
pauc
ity o
f res
pond
ents
who
sai
d th
e da
ta th
ey r
ecei
ve fr
om c
arrie
rs is
ver
y go
od. E
ven
amon
g ai
rfre
ight
ship
pers
, few
er th
an o
ne in
six
cha
ract
eriz
ed th
eir
data
as
very
goo
d. A
s sh
ippe
rs
and
LSP
s ra
mp
up th
eir
use
of v
isib
ility
and
sup
ply
chai
n de
sign
tool
s, th
ese
num
bers
will
hav
e to
impr
ove.
Car
riers
will
hav
e to
thin
k ab
out d
ata
qual
ity a
s a
diffe
rent
iatin
g fe
atur
e of
ser
vice
.
45%
0%10%
20%
30%
40%
50%
60%
We
don
'tus
e ca
rrie
rsin
thi
s m
ode
Very
poo
rP
oor
Neu
tral
Goo
dVe
ry g
ood
2%2%
1%
48%
4%5%
15%
25%
Oce
an
Truc
king
Rai
l/Int
erm
odal
Air
29%
29%41
%
3%3%
3%3%
0%
16%
35%
28%
17%
17%
16%
13%
Fig
ure
17
: C
arr
ier
Da
ta Q
ua
lity
By M
od
e
117
tota
l r
espo
nden
ts
Section VI: Transportation Management Technology Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
24
Sec
tion
VI: T
rans
porta
tion
Man
agem
ent
Tech
nolo
gy Tr
ends
An
enco
urag
ing
resu
lt fr
om t
his
year
’s s
urve
y is
tha
t fe
wer
tha
n on
e in
six
resp
ond
ents
use
a p
red
omin
antly
man
ual p
roce
ss fo
r tr
ansp
orta
tion
man
age-
men
t. W
ith a
ll th
e to
ols—
bot
h th
ird p
arty
and
hom
egro
wn—
in t
he m
arke
t, it
seem
s lik
e an
ant
iqua
ted
not
ion
for
a gl
obal
shi
pp
er t
o p
ersi
st w
ithou
t a
TMS
of a
ny k
ind
the
se d
ays.
That
sai
d, th
e hi
ghes
t per
cent
age
of r
espo
nden
ts (a
s in
pas
t yea
rs) i
ndic
ated
they
use
a h
ybrid
app
roac
h to
tran
spor
tatio
n m
anag
emen
t, an
d th
at li
kely
mea
ns
som
e m
odes
for
thes
e sh
ippe
rs a
re s
till b
eing
man
aged
in a
man
ual w
ay. A
nd
only
4 p
erce
nt o
f shi
pper
res
pond
ents
and
17
perc
ent o
f 3P
L re
spon
dent
s ar
e
usin
g a
syst
em fr
om a
TM
S v
endo
r. G
loba
l tra
nspo
rtat
ion
man
agem
ent i
s st
ill
larg
ely
driv
en b
y 3P
Ls, b
y in
tern
al s
yste
ms,
or
by s
prea
dshe
ets.
0%10
%20
%30
%40
%50
%
Rem
ote
via
on-d
eman
d s
yste
ms
or p
latf
orm
s p
rovi
ded
by
tech
nolo
gy v
end
or(s
)
Rem
ote
via
clou
d s
yste
ms
or
pla
tfor
ms
pro
vid
ed b
y te
chno
logy
ven
dor
(s)
Non
e of
the
se
Trad
ition
al li
cens
ed in
stal
led
sof
twar
e p
rovi
ded
by
tec
hnol
ogy
vend
or(s
)
In-h
ouse
dev
elop
ed a
nd m
aint
aine
d s
oftw
are
Man
ual,
we
hand
le a
ll g
lob
al t
rans
por
tatio
n w
ith p
hone
s/fa
xes/
emai
l
3PL(
s) r
epre
sent
s us
in fo
reig
n co
untr
ies
and
man
age
mos
t/al
l of t
he a
ctiv
ities
A m
ix o
r hy
brid
of a
ll of
the
se
Shi
pp
ers
3PLs
43
%
34%
24
%
11%
17
%
14%
10%
20
%
3% 11
%
2% 3%
1% 6%
1%
0%
Fig
ure
18
: G
lob
al
Tra
nsp
ort
ati
on
Ma
na
ge
me
nt
Pla
tfo
rm
138
tota
l re
spon
dent
s
Section VI: Transportation Management Technology Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
25
0%10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Red
uctio
nin
hea
dco
unt
Bet
ter
tran
spor
tatio
nra
tes
Bet
ter
tran
spor
tatio
nse
rvic
e
Dat
a ac
cura
cyE
ffici
ency
82%
97%
62%
62%
Shi
pp
ers
3PLs
41%
37%
14%
29%
28%
44%
Fig
ure
19
: B
igg
est
Be
ne
fits
of
Glo
ba
l T
MS
97 to
tal r
espo
nden
ts
For
thos
e us
ing
a sy
stem
of s
ome
kind
, effi
cien
cy a
nd d
ata
qual
ity a
re th
e tw
o
bigg
est b
enefi
ts. B
ut m
ost s
hipp
ers
and
3PLs
see
a r
ange
of b
enefi
ts fr
om a
TMS
—th
e tr
uth
is n
o tw
o sh
ippe
rs p
rocu
re a
TM
S w
ith th
e sa
me
mot
ivat
ion
and
no tw
o w
ill s
ee th
e ex
act s
ame
bene
fits.
Not
ably
, how
ever
, is
the
rela
tivel
y lo
w
prio
rity
TMS
use
rs p
lace
on
serv
ice
and
cost
. Opt
imiz
ing
the
netw
ork
is r
eally
beco
min
g be
tter
inte
rnal
ly.
0%10%
20%
30%
40%
50%
60%
70%
80%
Trai
ning
requ
ired
to
max
imiz
e va
lue
of p
latfo
rm
Lack
of i
nteg
ratio
n be
twee
n gl
obal
tran
spor
tatio
n pl
atfo
rm a
nd s
yste
ms
from
ext
erna
l ser
vice
pro
vide
rs
Lack
of i
nteg
ratio
n be
twee
n
glo
bal t
rans
porta
tion
plat
form
and
oth
er in
tern
al s
yste
ms
Cos
t to
inve
st
in th
e pl
atfo
rm64%
57%
53%
50%
34%
50%
37%
Shi
pp
ers
3PLs
57%
Fig
ure
20
: B
igg
est
Ch
all
en
ge
s o
f G
lob
al
TM
S
96 to
tal r
espo
nden
ts
Section VI: Transportation Management Technology Trends
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
26
If yo
u’re
look
ing
for
an a
nsw
er a
s to
why
mor
e sh
ipp
ers
and
LS
Ps
don
’t h
ave
a TM
S, F
ig. 2
0 p
rovi
des
a c
lue.
The
re a
re c
once
rns
over
cos
t (b
oth
upfr
ont
impl
emen
tatio
n an
d lo
ng-t
erm
sub
scrip
tion
or m
aint
enan
ce c
osts
), in
tegr
atio
n to
inte
rnal
sys
tem
s an
d co
nnec
tivity
to o
utsi
de p
artn
ers.
Des
pite
big
pus
hes
from
TMS
ven
dors
to m
ake
pote
ntia
l use
rs fe
el th
ese
aspe
cts
are
easy
to o
verc
ome,
ther
e re
mai
ns a
fear
that
a T
MS
will
take
tim
e to
impl
emen
t, w
ill b
e co
mpl
ex to
run,
and
that
the
RO
I on
an in
vest
men
t will
be
depe
nden
t on
inte
grat
ions
with
syst
ems
and
part
ners
.
A c
ritic
al fe
atur
e of
glo
bal T
MS
s is
thei
r ab
ility
to e
nabl
e us
ers
to r
espo
nd to
unus
ual e
vent
s in
thei
r tr
ansp
orta
tion
netw
ork.
Tyi
ng th
is b
ack
to th
e su
pply
chai
n de
sign
and
vis
ibili
ty s
ectio
ns o
f thi
s re
port
, TM
S u
sers
wan
t to
be a
ble
to
resp
ond
to a
tran
spor
tatio
n di
srup
tion
or a
n un
expe
cted
upt
ick
in d
eman
d in
rea
l
time.
It’s
all
part
of b
eing
agi
le o
rgan
izat
ion.
Fig
. 21
show
s th
at 3
6 pe
rcen
t of
resp
onde
nts
say
thei
r TM
S a
llow
s th
em to
res
pond
to s
uppl
y ch
ain
disr
uptio
ns,
whi
le 4
4 pe
rcen
t can
use
thei
r TM
S to
res
pond
to c
hang
es in
dem
and
acro
ss
thei
r ro
utes
and
mod
es.
With
out t
his
capa
bilit
y, a
TM
S is
an
expe
rt p
lann
ing
tool
whe
n th
ings
are
run
ning
smoo
thly
, but
not
so
usef
ul w
hen
thin
gs g
o w
rong
, as
they
oft
en d
o in
rea
l wor
ld
supp
ly c
hain
s. H
avin
g a
TMS
that
allo
ws
you
to re
spon
d on
a g
loba
l bas
is, a
cros
s
all m
odes
, has
bec
ome
a ne
cess
ary
feat
ure
for t
he m
ost s
ophi
stic
ated
shi
pper
s.
0%10%
20%
30%
40%
50%
Str
ongl
y d
isag
ree
Dis
agre
eU
ncer
tain
Agr
eeS
tron
gly
agre
e
4%5%
39%
32%
Bas
ed o
n S
upp
ly
Cha
in D
isru
ptio
ns
Bas
ed o
n C
hang
es
in D
eman
d
39%
42%
13%
9%8%
7%
Fig
ure
21
: T
MS
En
ab
les E
asy M
od
e a
nd
Ro
ute
Op
tim
iza
tio
n
97 to
tal r
espo
nden
ts
Section VII: Best Practices
Glo
ba
l T
ran
sp
ort
ati
on
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na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
27
Ensure
that
your
TM
S
or
third
part
y t
ransp
or-
tation m
anagem
ent
serv
ices p
rovid
er
allo
ws y
ou t
o r
eact
to
dis
rup
tions o
r d
em
and
fluctu
ations a
cro
ss a
ll
mod
es a
nd
geogra
-
phie
s. O
ptim
izin
g for
the b
est
case s
cenario
is o
nly
usefu
l when t
he
best
case s
cenario
actu
ally
hap
pens.
Sec
tion
VII
: Be
st P
ract
ices
Eac
h A
mer
ican
Shi
pper
ben
chm
ark
rese
arch
initi
ativ
e se
eks
to n
ot o
nly
shed
ligh
t
on h
ow tr
ansp
orta
tion
proc
ess
and
tech
nolo
gy u
sage
cha
nges
yea
r-to
-yea
r, bu
t
also
to p
rovi
de w
hat w
e se
e as
bes
t pra
ctic
es, b
ased
on
quan
titat
ive
mea
sure
s
and
our d
ozen
s of
dis
cuss
ions
with
pra
ctiti
oner
s ac
ross
the
tran
spor
tatio
n an
d
logi
stic
s la
ndsc
ape.
This
yea
r, w
e ad
vise
tran
spor
tatio
n m
anag
ers
to:
1. A
ttai
n co
mpl
ete
visi
bilit
y ac
ross
all
your
mod
es a
nd tr
y to
app
ly m
etric
s so
that
you
und
erst
and
the
valu
e of
vis
ibili
ty to
you
r or
gani
zatio
n. A
ttac
hing
dolla
r figu
res
to v
isib
ility
ben
efits
not
onl
y he
lps
you
impr
ove
your
pro
cess
es,
it al
so h
elps
you
gar
ner
mor
e in
vest
men
t for
futu
re in
tiativ
es.
2. U
nder
stan
d th
e ke
y m
ilest
ones
in y
our
tran
spor
tatio
n ne
twor
k an
d fo
cus
your
vis
ibili
ty e
ffort
s on
thos
e m
ilest
ones
. The
y w
ill b
e th
e tr
igge
rs fo
r
reac
tive
exec
utio
n w
hen
disr
uptio
ns o
ccur
.
3. E
nsur
e th
at y
our
TMS
or
third
par
ty tr
ansp
orta
tion
man
agem
ent s
ervi
ces
prov
ider
allo
ws
you
to r
eact
to d
isru
ptio
ns o
r de
man
d flu
ctua
tions
acr
oss
all m
odes
and
geo
grap
hies
. Opt
imiz
ing
for
the
best
cas
e sc
enar
io is
onl
y
usef
ul w
hen
the
best
cas
e sc
enar
io a
ctua
lly h
appe
ns.
4. C
onsi
der
the
use
of a
net
wor
k de
sign
tool
that
sits
abo
ve y
our
day-
to-d
ay
tran
spor
tatio
n m
anag
emen
t p
roce
ss. T
he d
esig
n ex
erci
se c
an b
e as
sim
ple
as b
ette
r op
timiz
ing
your
tran
spor
tatio
n ne
twor
k, o
r it
can
be a
s
all-
enco
mpa
ssin
g as
hel
ping
you
loca
te th
e be
st p
lace
to s
ourc
e go
ods
and
loca
te d
istr
ibut
ion
cent
ers.
5. K
now
that
TM
S u
sers
tend
to s
ee c
ost r
educ
tions
and
car
rier
serv
ice
as lo
w
prio
ritie
s w
hen
it co
mes
to th
e be
nefit
s of
suc
h a
syst
em. I
f you
r m
otiv
atio
n
for
usin
g a
TMS
is t
o w
ring
out
cost
, you
may
be
mis
sing
out
on
the
thin
gs
a TM
S c
an a
lso
addr
ess.
Appendix A: About Our Sponsors
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l T
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Am
ber
Road
Am
ber
Roa
d’s
(NY
SE
: AM
BR
) mis
sion
is to
dra
mat
ical
ly c
hang
e th
e w
ay
com
pan
ies
cond
uct
glob
al t
rad
e. A
s a
lead
ing
pro
vid
er o
f clo
ud b
ased
glob
al tr
ade
man
agem
ent (
GTM
) sol
utio
ns, w
e au
tom
ate
impo
rt a
nd e
xpor
t
proc
esse
s to
ena
ble
good
s to
flow
acr
oss
inte
rnat
iona
l bor
ders
in th
e m
ost
effic
ient
, com
plia
nt a
nd p
rofit
able
way
. Our
sol
utio
n co
mbi
nes
ente
rpris
e-
clas
s so
ftw
are,
tra
de
cont
ent
sour
ced
from
gov
ernm
ent
agen
cies
and
tran
spor
tatio
n pr
ovid
ers
in 1
45 c
ount
ries,
and
a g
loba
l sup
ply
chai
n ne
twor
k
conn
ectin
g ou
r cu
stom
ers
with
thei
r tr
adin
g pa
rtne
rs, i
nclu
ding
sup
plie
rs,
frei
ght f
orw
arde
rs, c
usto
ms
brok
ers
and
tran
spor
tatio
n ca
rrie
rs. W
e de
liver
our
GTM
sol
utio
n us
ing
a S
oftw
are-
as-a
-Ser
vice
(Saa
S) m
odel
and
leve
rage
a hi
ghly
flex
ible
tec
hnol
ogy
fram
ewor
k to
qui
ckly
and
effi
cien
tly m
eet
our
cust
omer
s’ u
niqu
e re
quire
men
ts a
roun
d th
e w
orld
.
For
mor
e in
form
atio
n, p
leas
e vi
sit
ww
w.A
mb
erR
oad
.com
, em
ail S
olut
ions
@
Am
ber
Roa
d.c
om o
r ca
ll 20
1-93
5-85
88.
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exu
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GT
Nex
us o
per
ates
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est
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ased
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ines
s ne
twor
k an
d
exec
utio
n p
latf
orm
for
glob
al t
rad
e an
d s
upp
ly c
hain
man
agem
ent.
Mor
e
than
$10
0 b
illio
n in
tra
de
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roug
h th
e G
T N
exus
net
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Ove
r 25
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ulti-
ente
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clud
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erp
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auss
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ohl’s
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agon
ia, P
fizer
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erha
euse
r.
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GT
Nex
us n
etw
ork
par
ticip
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op
erat
e ag
ains
t a
core
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l-tim
e an
d
alw
ays
on s
et o
f inf
orm
atio
n ac
ross
mul
tiple
sup
ply
cha
in fu
nctio
ns, a
llow
ing
them
to
optim
ize
the
flow
of g
ood
s, fu
nds
and
tra
de
info
rmat
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from
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f ord
er t
hrou
gh fi
nal p
aym
ent.
Evo
luti
on
To
wa
rd B
usin
ess N
etw
ork
s
Trad
ition
al to
ols
built
for
the
ente
rpris
e ar
e in
suffi
cien
t for
toda
y’s
glob
al s
uppl
y
chai
n. G
T N
exus
ena
bles
com
plex
sup
ply
netw
orks
to o
pera
te a
s a
sing
le c
hain
inst
ead
of in
divi
dual
par
ties.
End
-to-
end
supp
ly c
hain
vis
ibili
ty —
acro
ss s
ourc
ing,
logi
stic
s an
d t
rad
e fin
ance
—ar
e d
eliv
ered
to
all p
artie
s in
the
net
wor
k.
Ap
pen
dix
A: A
bout
Our
Spo
nsor
s
Appendix B: About Our Partners
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
29
Ap
pen
dix
B: A
bout
Our
Par
tner
s
Council o
f Supply
Chain
Managem
ent
Pro
fess
ionals
Sin
ce 1
963,
the
Cou
ncil
of S
uppl
y C
hain
Man
agem
ent P
rofe
ssio
nals
(CS
CM
P)
has
bee
n th
e le
adin
g w
orld
wid
e p
rofe
ssio
nal a
sso
ciat
ion
ded
icat
ed t
o
educ
atio
n, re
sear
ch, a
nd th
e ad
vanc
emen
t of t
he s
uppl
y ch
ain
man
agem
ent
pro
fess
ion.
With
mor
e th
an 9
,000
mem
ber
s gl
obal
ly, r
epre
sent
ing
bus
ines
s,
gove
rnm
ent,
and
aca
dem
ia fr
om 6
2 co
untr
ies,
CS
CM
P m
emb
ers
are
the
lead
ing
pra
ctiti
oner
s an
d a
utho
ritie
s in
the
fiel
ds
of lo
gist
ics
and
sup
ply
chai
n m
anag
emen
t.
Nati
onal R
eta
il F
edera
tion
NR
F is
the
wor
ld’s
larg
est r
etai
l tra
de a
ssoc
iatio
n, r
epre
sent
ing
disc
ount
and
depa
rtm
ent s
tore
s, h
ome
good
s an
d sp
ecia
lty s
tore
s, M
ain
Str
eet m
erch
ants
,
groc
ers,
who
lesa
lers
, cha
in r
esta
uran
ts a
nd In
tern
et r
etai
lers
from
the
Uni
ted
Sta
tes
and
mor
e th
an 4
5 co
untr
ies.
Ret
ail i
s th
e na
tion’
s la
rges
t priv
ate
sect
or
empl
oyer
, sup
port
ing
one
in fo
ur U
.S. j
obs —
42 m
illio
n w
orki
ng A
mer
ican
s.
Con
trib
utin
g $2
.6 tr
illio
n to
ann
ual G
DP
, ret
ail i
s a
daily
bar
omet
er fo
r th
e
natio
n’s
econ
omy.
NR
F’s
This
is R
etai
l cam
paig
n hi
ghlig
hts
the
indu
stry
’s
oppo
rtun
ities
for
life-
long
car
eers
, how
ret
aile
rs s
tren
gthe
n co
mm
uniti
es, a
nd
the
criti
cal r
ole
that
ret
ail p
lays
in d
rivin
g in
nova
tion.
Our
mis
sion
is to
adv
ance
the
inte
rest
s of
the
reta
il in
dust
ry th
roug
h ad
voca
cy,
com
mun
icat
ions
and
edu
catio
n.
Reta
il Indust
ry L
eaders
Ass
ocia
tion
The
Ret
ail I
ndus
try
Lead
ers
Ass
ocia
tion
(RIL
A) i
s th
e tr
ade
asso
ciat
ion
of th
e
wor
ld’s
larg
est a
nd m
ost i
nnov
ativ
e re
tail
com
pani
es. R
ILA
mem
bers
incl
ude
mor
e th
an 2
00 r
etai
lers
, pro
duct
man
ufac
ture
rs, a
nd s
ervi
ce s
uppl
iers
, whi
ch
toge
ther
acc
ount
for
mor
e th
an $
1.5
trill
ion
in a
nnua
l sal
es a
nd m
illio
ns o
f
Am
eric
an jo
bs, a
nd o
pera
te m
ore
than
100
,000
sto
res,
man
ufac
turin
g fa
cilit
ies
and
dist
ribut
ion
cent
ers
dom
estic
ally
and
abr
oad.
Appendix C: About American Shipper Research
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
30
Ap
pen
dix
C: A
bout
Am
eric
an S
hipp
er R
esea
rch
Bac
kgro
und
Sin
ce o
ur fi
rst e
ditio
n in
May
197
4, A
mer
ican
Shi
pper
has
pro
vide
d U
.S.-
base
d lo
gist
ics
prac
titio
ners
with
accu
rate
, tim
ely
and
act
iona
ble
new
s an
d a
naly
sis.
The
com
pan
y is
wid
ely
reco
gniz
ed a
s th
e vo
ice
of th
e in
tern
atio
nal t
rans
port
atio
n co
mm
unity
.
In 2
008
Am
eric
an S
hipp
er la
unch
ed it
s fir
st fo
rmal
, ind
epen
dent
res
earc
h in
itiat
ive
focu
sed
on th
e st
ate
of
tran
spor
tatio
n m
anag
emen
t sys
tem
s in
the
logi
stic
s se
rvic
e pr
ovid
er m
arke
t. S
ince
that
tim
e th
e co
mpa
ny
has
publ
ishe
d m
ore
than
a d
ozen
rep
orts
on
subj
ects
ran
ging
from
reg
ulat
ory
com
plia
nce
to s
usta
inab
ility
.
Scope
Am
eric
an S
hipp
er r
esea
rch
initi
ativ
es ty
pica
lly a
ddre
ss in
tern
atio
nal o
r gl
obal
sup
ply
chai
n is
sues
from
a
U.S
.-ce
ntric
poi
nt o
f vie
w. T
he r
esea
rch
will
be
mos
t rel
evan
t to
thos
e re
ader
s m
anag
ing
larg
e vo
lum
es o
f
airf
reig
ht, c
onta
iner
ized
oce
an a
nd d
omes
tic in
term
odal
frei
ght.
Am
eric
an S
hip
per
rea
der
s ar
e ta
sked
with
man
agin
g la
rge
volu
mes
of f
reig
ht m
ovin
g in
to a
nd o
ut o
f the
cou
ntry
so
the
rese
arch
sco
pe
refle
cts
thos
e in
tere
sts.
Meth
odolo
gy
Am
eric
an S
hip
per
ben
chm
ark
stud
ies
are
bas
ed u
pon
res
pon
ses
from
a p
ool o
f ap
pro
xim
atel
y 40
,000
read
ers
acce
ssib
le b
y e-
mai
l inv
itatio
n. G
ener
ally
eac
h be
nchm
arki
ng p
roje
ct is
bas
ed o
n 20
0-50
0 qu
alifi
ed
resp
onse
s to
a 2
5-35
que
stio
n su
rvey
dep
endi
ng o
n th
e na
ture
and
com
plex
ity o
f the
topi
c.
Am
eric
an S
hip
per
rep
orts
com
par
e re
ader
s fr
om k
ey m
arke
t se
gmen
ts d
efine
d b
y in
dus
try
vert
ical
,
com
pany
siz
e, a
nd o
ther
var
iabl
es, i
n an
effo
rt to
cal
l out
tren
ds a
nd u
ltim
ate
best
pra
ctic
es. S
egm
ents
crea
ted
for
com
paris
ons
alw
ays
cons
ist o
f 30
or m
ore
resp
onse
s.
Lib
rary
Am
eric
an S
hipp
er’s
com
plet
e lib
rary
of r
esea
rch
is a
vaila
ble
on o
ur W
ebsi
te:
Am
eric
anS
hip
per
.com
/Res
earc
h.
An
nu
al stu
die
s in
clu
de
:
Pro
cure
men
t Ben
chm
ark
Ben
chm
ark
Mea
sure
men
t Ben
chm
ark
Conta
ct
Eri
c J
oh
nso
n
Res
earc
h D
irect
or
Am
eric
an S
hip
per
ejo
hn
so
n@
sh
ipp
ers
.co
m
Glo
ba
l T
ran
sp
ort
ati
on
Ma
na
ge
me
nt
| B
ench
mar
k S
tudy
: 201
5
Co
pyri
gh
t© 2
015 b
y H
ow
ard
Pu
blic
ati
on
s, In
c. A
ll r
igh
ts r
ese
rve
d.
No
part
of t
he c
onte
nts
of th
is d
ocum
ent m
ay b
e re
prod
uced
or
tran
smitt
ed in
any
form
or
by a
ny m
eans
with
out t
he p
erm
issi
on o
f the
pub
lishe
r.