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For years, traditional Transportation Management Systems (TMS) and visibility tools have left shippers adrift in a sea of uncertainty. Limited visibility into critical data points has hampered proactive decision-making, leading to costly delays and missed opportunities. Why do these solutions fail in the first place?
The Current Visibility Challenge
Even though TMS or freight management tools have existed for some time, many supply chain professionals still rely on phone calls and emails to track ocean shipments. Unfortunately, this is the reality for many companies that are still using traditional or legacy TMS solutions. These systems often operate in silos, failing to integrate seamlessly with other vital data sources. Such scenarios create a significant visibility gap, leaving many businesses with a fragmented view of their supply chain.
The consequences of visibility gaps can escalate into a domino effect of disruptions. Imagine a container stuck in customs with slow or no notifications at all. You'll be left scrambling to inform clients, potentially jeopardizing their production schedules and damaging your reputation.
According to container shipping intelligence firm Linerlytica, global port congestion during mid-June 2024 has reached an 18-month high, with 60% of ships waiting at anchors in Asia. This translates to millions of TEUs (Twenty-foot Equivalent Units) stuck at anchor, causing cascading delays and driving up demurrage charges.
The lack of end-to-end visibility in ocean freight, caused by siloed operations and integration challenges with traditional systems, undoubtedly results in costly consequences. However, a modern TMS can easily bridge this visibility gap.
The Rise of Modern TMS
Modern TMS solutions directly respond to the most crucial challenges shippers face: limited visibility, siloed data, and cumbersome manual processes.
They are usually cloud-based solutions that are more cost-effective and accessible to a wider range of businesses. They seamlessly connect with various data sources, like carrier networks and supplier systems, providing a clearer detail of what's happening with every shipment. These platforms are also designed to eliminate the drudgery of manual data entry, as they can seamlessly integrate with existing Warehouse Management Systems (WMS) or Enterprise Resource Planning (ERP) software. This removes the need for repetitive tasks, streamlines processes and further elevates overall visibility.
Modern TMS providers understand that collaboration is key in today's dynamic logistics landscape. They actively foster partnerships within the ecosystem, ensuring continuous improvement and delivering even greater value to shippers in the long run.
Enhancing Ocean Freight Control with Real-Time Visibility In a TMS
Better visibility leads to better freight control for all shippers. Here are some game-changing benefits a modern TMS can provide with integrated real-time visibility:
Proactive Exception Management
Shippers can receive instant notifications, alerts, or updates on the status of their shipments. These functions enable them to take immediate action to ensure all shipments arrive at their destinations smoothly without being affected. This is especially valuable for shippers whenever an ongoing or imminent disruption threatens a shipment.
With a modern TMS, teamwork can truly come alive. By integrating their supplier and carrier network into a modern TMS, shippers can work out freight challenges quickly with their partners to investigate the issue, adjust delivery schedules, or even explore alternative routes to expedite the shipment.
Improved Decision Making
By incorporating real-time visibility data into a modern TMS's robust analytics, shippers can be empowered to make better decisions throughout the entire shipping process. For example, as port congestion data accumulates over time, shippers can plan to ship through the ports during more optimal times.
Reduced Costs
Delays in ocean freight can be costly, leading to demurrage charges and missed production deadlines. Real-time visibility in a TMS helps mitigate these risks. You can minimize delays and ensure on-time deliveries by proactively identifying and addressing potential disruptions.
Additionally, improved visibility allows for better planning and negotiation with carriers, potentially leading to cost savings.
Enhanced Customer Satisfaction
Customers are the lifeblood of every business, and trust is one of the most vital qualities that should never be compromised.
With better control over shipping times to ensure on-time deliveries through real-time visibility, the business will garner more customers' trust as it has demonstrated reliable and consistent shipping performance, with fewer delays or missing shipments.
Increased Operational Efficiency
Real-time ocean freight data has also empowered shippers to streamline their logistics operations. Improved visibility can provide insights for shippers to allocate their resources better in advance, allowing them to optimize container packing and yard management.
Future of Visibility in Ocean Freight
In today's ocean freight landscape, real-time visibility is no longer a value-added feature. In my opinion, it's a mandatory requirement even for years to come. Climate change and geopolitics already have a bigger impact on ocean freight than before, creating more uncertainties that can send shippers off guard without notice.
That being said, the future of visibility in ocean freight is undeniably linked to real-time visibility. As technology evolves, we can expect even more sophisticated solutions that can provide even deeper insights into your cargo's journey.
Since the beginning of time, the supply chain has always been a collaborative endeavor. The key to unlocking this future lies in strategic collaborations made possible with Trust and Reliability. Cargobase is proud to have established a strategic partnership with Portcast to deliver progressive freight management and visibility solutions. This collaboration seeks to empower businesses with unparalleled control over their ocean freight operations, offering value-added features such as live updates of ocean freight disruptions, port congestion and more.
- This guest blog is authored by Wiebe Helder, CEO, Cargobase
Also Read: Cargobase and Portcast Forge Strategic Partnership to Enhance Supply Chain Visibility for Clients Worldwide
