Erring either way can have many drawbacks. Other companies may not require a TMS at all, if they deal mostly with outside parcel carriers such as FedEx or DHL. Companies also have to be careful that they do not fail with their TMS once it is implemented because they made one of the common errors. For example, some companies go through the expense of installing TMS programs without top-to-bottom involvement. Senior management needs to support such an approach, otherwise it can not work properly or at all. Also, once the decision is made to look at process improvements, do not stall. The longer one waits for analysis, the better the chance that changes have been made, especially in a fast-moving industry. In addition, organizations do not need at TMS that is specifically designed for its product/service sector. Companies share numerous similarities in transportation issues and do not need a lot of bells and whistles in customization. When organizations begin to implement process improvement plans into their manufacturing, it is important to get vendors involved so they are on the same page and can begin to make changes in their organizations as well. It is the same situation here. Carriers need to be kept in the loop and know what is being done. This is a collaborative process.
Continuous Process improvement/Six Sigma, as noted above, is usually an essential addition for all aspects of logistics planning. Such tools are being utilized by leading organizations to improve their extended supply chain and logistics capabilities; they are improving reliability and cutting hundreds of millions of dollars in supply chain costs by focusing on accountability to control their processes. One of the major concepts engrained...
This necessitates "accountability." It is not enough to measure key metrics. It is necessary to plan specific measures based on these metrics as well and the accountability that goes hand-in-hand with these measures -- what takes place if the measures are taken and what if they are not taken. When designing a process improvement plan, it is necessary to incorporate responsibilities into the individual employee performance measures. This provides a mean for follow through for what has/has not been accomplished and what errors have been made and improvements that are needed to be made.
As Gilmore states, performance measures must be in place that quantify how well the supply chain is doing and specific areas of opportunity. Without numbers, it very difficult to know how much commitment there is and even more so the results achieved. Did products or components reach the factory on time and what was the amount of down time? When did the merchandise reach the store and how much discounting, if any, was due because of the supply chain? On the other hand, how much more revenue was earned because of the supply chain, and what was the tradeoff between those incremental earnings and supply chain costs? How much inventory resulted from a given supply chain strategy and what are the options to the current practice?
By answering such questions, it will be easier to see what improvements are working and which ones need to be reanalyzed and vamped. With most companies now turning to continuous process improvement, there is not down time when it comes to making a company better. Continuous improvement must be just as its term states -- continous.
