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Lean and Technology: Working Hand in Hand to Enable and Energize Your Global Supply Chain by Paul A. Myerson

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15. Transportation Management Systems (TMS)

The transportation systems that are used to connect your supply chain must be managed and controlled properly, with complete visibility and great communication between partners. Transportation and logistics (primarily warehouse operations) costs can account for as much as 7% to 14% of sales, depending on the industry. Transportation costs alone comprise the vast majority of this expense for most companies. Best-in-class companies have transportation and logistics-related costs in a range of 4% to 7%, depending on industry sector. So it’s not hard to see how operationally and financially important transportation is to a successful business.

Not surprisingly, transportation management systems (TMS) have ...

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