F2022 SCM210-205

TRANSPORTATION
AND WAREHOUSING

ASSIGNMENT - 2
Submitted To- Professor Deepika Bhatia
(Course Instructor)

Submitted By- Meenu (A00144392)

Due Date: 25.10.2022 (11:59 PM)

Explain Transportation management systems and other transportation technologies and

their impact on the inbound and outbound transportation activities along with the supply

chain with respect to Cloud Logistics.

Transportation Management System- Introduction

With the rapid advancement in an Omni-channel distribution system and e-commerce, the

transportation management in supply chain is also changing at fast pace. Working in

collaboration with supply chain and ERP, a Transportation management system is a software

platform that aims to provide control over logistics events and visibility in the supply chains. It

provides shipper tools and resources to all the supply chain stakeholders- shipper, supplier,

warehousing, transportation, finance, sales, customer service, purchasing, and executive

management team, so that they can function efficiently with agility and resilience. An effective

TMS provides immediate access to customer orders making the supply chain to flow with

accuracy and agility. This helps in better decision making and mitigating the risks in supply

chain. A good transportation management system help in increasing revenues and managing the

costs strategically, thus, providing a competitive advantage.

The Cloud Logistics- A Revolution in Transportation Management

The Cloud based logistics solutions is online platform that is run on provider’s cloud (single

server) to be used by many shippers. So, basically, it is a multi-tenant solution. This system does

not need any software to be installed in the computer system or without downloading any plug-

ins. It can be accessed on any device having an internet connection.

The Cloud Logistics as a TMS, allows the shippers to manage their supply chains in a digital

manner. It helps in all the route planning and optimization. It provides order visibility by aiding
in freight audit and payment. Earlier, the Cloud Logistics application was used as older on-

premise software. But now, there is shifting to Cloud application. This online platform works in

collaboration with vendors, carriers, trading parties and customers, thus, optimizing the

transportation network and providing real-time data and information across the channel

(https://www.supplychain247.com/article/transportation_management_systems_market_2018/

cloud_logistics).

Impact of Cloud Logistics as a Transportation Management System on Inbound and

outbound, and other activities in the supply chain-

 Real Time Transportation management- Cloud Logistics provides online software

based real-time transportation schedules and pricing. It helps the customers in searching,

comparing and selecting the most reliable and optimal freight rates for transportation in

any possible mode of transportation viz. Ocean LCL/FCL, Road, Air LTL/FTL, and

railways. This advantage was not being provided by traditional systems. Real-time

reporting helps in saving costs and enhancing performance, activity and insight into the

supply chain (Delfmann W., Jaekel F., 2012).

 In-sync sourcing and trading- The programmatic management of sourcing data in

Cloud Logistics helps the customers to deliver sourcing request to hundreds of the

suppliers, by prior evaluation of prices and conditions in the online system. This is a type

of massive scale online auction for selecting your supplier. Huge freight savings can be

made owing to simulation and network design, load consolidation and lower cost mode

selection, and multi-stop route optimization (Temjanovski, Riste, 2021).

 Real-time tracking of inventory and cargo with modern technologies- Cloud

Logistics functions consolidately with RFID (Radio-frequency Identification) to read and

 analyze the information printed on tags or labels on the item from a distance of few feet.

This information is basically in the form of the bar codes and is uploaded in the online

Cloud system. This allows for real-time tracking and monitoring of inventory and

equipment.

 Global visibility in Supply chain network- Cloud Logistics provides transparency in

the transaction and shipment process to all the stakeholders of supply chain i.e. supplier,

carriers, customers and trading partners. All the external and internal stakeholders can get

same prospective of transaction events from multiple carriers. This could be accessed

from any device at any time. This helps the shippers to prepare and schedule prior

shipment activities. The customer can also get location updates about the shipment with

the help of this Application Programming Interface (API) (https://trinitylogistics.com/wp-

content/uploads/2017/04/What-is-a-TMS-Whitepaper.pdf).

 Trusted Trade Finance- The blockchain technology is rendering innovations in the

process of Trade Finance. Combined with Cloud Logistics solutions, the trust between

the trading partners increases during financial transactions that, ultimately, helps in

reducing costs and accelerates the verification process.

 Automated and Error-free Transportation management- Cloud Logistics provides

automation in the whole process and saves time by extracting the required data

immediately. Cloud Logistics, nowadays, is making use of many reliable technologies

like machine learning, RFID, Blockchain technology, and IoT etc. This makes the entire

process efficient and error-free as compared to the traditional and conventional manual

process. The processes that could be automated with the help of Cloud Logistics are

rating, booking, tendering, tracking, auditing, reporting, and invoicing.

(https://trinitylogistics.com/wp-content/uploads/2017/04/What-is-a-TMS-Whitepaper.pdf).

Conclusion

The digital transformation of the supply chain urges the process of transportation to adopt the

digital platform like Cloud Logistics. This eliminates the biggest challenges faced by the

logistics companies such as customer service, visibility in the supply chain network, and

transportation costs. So, the transportation management systems like Cloud Logistics have

become an integral part of supply chains.

References-

 Temjanovski, Riste. (2021). Cloud computing in logistic and Supply Chain Management

environment. Journal of Economics. 6. 23-32. 10.46763/JOE216.10023t.

 Delfmann W., Jaekel F. (2012.: “The Cloud – Logistics for the future”? discussion paper,

German Logistics Association - BVL International, Ed., 2012. p.3

 https://www.supplychain247.com/article/

transportation_management_systems_market_2018/cloud_logistics.

 https://trinitylogistics.com/wp-content/uploads/2017/04/What-is-a-TMS-Whitepaper.pdf