It is difficult to imagine a successful supply chain (global and local) that disregards the concept of collaborative shipping and integrated workflows in today’s interconnected economy.
When you imagine the average shipping operation, it is common to center everything around the shipper or business transporting the cargo. However, it involves many parties and stakeholders across the board. Yes, the shipper owns the cargo, but there won't be much shipping happening without the aid of carriers, freight forwarders, brokers, and third-party logistics providers (including dray services and warehousing). These stakeholders working together to achieve a seamless shipping experience constitute collaborative shipping.
On the other hand, integrated workflow is the seamless connection of all systems, processes, stakeholders, and data sources in the supply chain operation to maintain a consistent flow of information. Together, they make the entire shipping experience much more transparent and easier to control.
In this article, we will explore the components of collaborative shipping and how integrated workflows optimize the shipping experience.
Integrated workflow is the pillar of collaborative shipping. Collaborating with all stakeholders will be a challenge without integrated workflows. Think of collaborative shipping as the coming together of all parties involved in the logistics operation and the integrated workflows of all systems and tools leveraged. There are five key components of integrated workflows that must be in place to enhance collaborative shipping:
Transportation is necessary for any business that delivers products and services to its customers. However, the entire process can be quite messy. That is where the TMS comes in. It is a solution or system that streamlines and optimizes the entire transportation process. With the TMS, shippers can manage multiple shipments efficiently, streamline carrier selection, and find the best-optimized routes for the shipping process.
Although separate from the freight process, the warehouse is quite connected to it. Poor warehouse operations can disrupt the entire logistics process. That is why the WMS is critical for an enhanced shipping experience. The WMS simplifies the supply chain’s inventory and flow of goods, allowing for seamless coordination between warehouse and transportation activities. When integrated with the TMS, you can enjoy end-to-end visibility throughout the logistics and supply chain operation.
Order fulfillment and processing are tangible aspects of any shipping process. This is primarily because, when done poorly, they could lead to low customer satisfaction, errors that cost the business a great deal of resources, and, in many cases, chaos across the logistics management process. By integrating with the TMS and WMS, shippers have a more comprehensive view of the entire operation, allowing for stress-free optimization.
Before tech ingress, it was common to have inaccuracies and inconsistencies with information exchange, which could make it challenging for supply chain operators to justify the time and resources it consumes. EDI has been a welcome respite over the last few decades, helping stakeholders seamlessly transfer or exchange business documents, leading to better communication, collaboration, and delivery timelines. EDI also ensures fewer errors creep into the system from manual data transfer.
API is a much-improved technology to EDI, greatly enhancing the ability of the different supply chain systems to integrate and communicate with each other seamlessly. Because of API integration, businesses can exchange real-time data, automate processes, and create customized workflows faster across their shipping process.
Integrated workflow enhances the ability of all stakeholders in the shipping operation to work together effortlessly, transforming the entire shipping experience. Through the integrated workflow, the following is possible:
Communication is critical to any supply chain operation, especially shipping. With logistics solutions like the WMS, TMS, OMS, and EDI, the stakeholders involved in the shipping have complete access to relevant information, facilitating collaboration.
With integrated workflows, shippers can track shipments at every stage of the transportation process. This allows them to take decisive action should the need arise while the shipment is in transit.
Automating repetitive tasks frees up valuable time for shipping stakeholders, allowing for more strategic actions and tasks. This has led to fewer human errors, optimized shipment processing, reduced operational costs, and, ultimately, better customer satisfaction.
Connecting different systems and data sources allows information to flow seamlessly across the supply chain and shipping operation. This, in turn, reduces the need for manual intervention, resulting in faster turnaround times, improved productivity, and enhanced customer service.
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