Transportation Management Sytems Essay Example | Topics and Well Written Essays - 500 words

Transportation Management Sytems - Essay Example The first step towards achieving this integration is the dissemination of complete information among suppliers, retailers and carriers. The TMS should plan and manage multiple transportation modes, multiple carriers, multiple routes and multiple tariffs for timely supply of goods at low cost. When the GIV is efficiently operated, it will result in low cost throughout various stages of supply chains. Under GIV, time consumption, labour expenditure along with the handling costs could also be reduced due to a reduction in the number of personnel required to complete the task. Reduced lead time availability is the main benefit from the GIV. It leads to implementation of creative policies resulting in improved product quality and increased customer service. (Hopp and Spearman, 1996). The virtual warehouse (VW) concept, aimed at maintaining real -time global visibility for logistics assets, was pioneered by Global Concepts, Inc. (Stuart et al., 1995; Landers et al., 2000).Real-time information and real-time decision algorithms are the basic things in the VW that provide operating efficiencies. But as proved by the simulation model, conducted for an auto-parts supplier’s (company) multi product supply chain, the GIV could achieve these efficiencies in a single class warehouse (Stuart et al., 1995). The simulation model was experimented with three types of items known as slow moving items, regular items and fast moving items. They are automobile engines, automobile tires and motor oil items respectively.