According to a report released today by American Shipper in cooperation with the Retail Industry Leaders Association (RILA); leading retailers are operating with more efficiency, increasing productivity, reducing cost and utilizing environmentally sound methods of transport through enhanced administration of their international transportation management systems (ITMS).
More than 150 qualified international transportation managers were surveyed regarding their international transportation management practices, processes, people and technologies. The information gathered was examined to gauge the state ITMS technologies, best practices, and the result of automating this function. Survey respondents represented a variety of industry segments, including retail, manufacturing, materials, and third party logistics and covered a wide-range of sizes based on annual sales.
According to the report:
“Comparing satisfaction levels of automated firms versus those who manage international transportation manually, it is evident that systems are delivering a return on investment. Automated firms are nearly four-times more likely to rank their international transportation management function as “excellent” or “good” than manual operators.”
“In this economic environment, the ability to streamline operations is essential. Successful companies leverage their ITMS applications to simplify their international transportation processes and increase their overall logistics productivity; thereby, putting themselves in a better position to manage a larger number of inbound purchase orders more efficiently and effectively,” said Casey Chroust, executive vice president of retail operations for the Retail Industry Leaders Association (RILA).
Through the use of automated applications, companies report achieving four times more productivity than manual-based firms. 60 percent of leading companies report preferring to manage their ITMS via a mix of systems and services with only 20 percent of respondents reporting their ITMS is a manually managed function, demonstrating this to be a less desirable method across the board.
The concrete benefits revealed through implementing an ITMS application as noted by the report encompassed four key principles:
“Not only do ITMS applications enhance productivity and efficiency in transportation operations, but the paperless management capabilities contribute to an organization’s sustainability goals,” said Casey Chroust, executive vice president of retail operations. “Additionally, ITMS applications provide increased visibility several days further into the pipeline, which allows companies to proactively manage issues, avoid express airfreight and move a greater percentage of goods via more cost-effective and environmentally-friendly ocean lanes.”
Those respondents who qualified as winners were identified as meeting three key criteria: 1.) They are capable of sending an electronic purchase order (EDI 850 file). 2.) Have five or more days advanced notice of the specific details of their shipments before they arrive at international origin. This includes number of cartons, dimensions and total cube of the shipment. 3.) Meet or exceed the targets provided to them by their procurement departments.
Winners were singled out in the report as leveraging one or more ITMS applications, allowing them to achieve higher levels of productivity, effectiveness, and visibility. Winners accounted for 24 respondents and tended to be larger companies ($1 billion or more in annual sales) and include heavy representation from the retail/wholesale segment.
About American Shipper:
American Shipper is the leading business-to-business media covering the international logistics and transportation industry. The company’s media portfolio includes multiple Web sites, e-newsletters, seminars, conferences, research and the flagship print journal, American Shipper magazine. For more information, visit www.AmericanShipper.com.
About RILA:The Retail Industry Leaders Association (RILA) is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.
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Brian Dodge SVP, Communications & State Affairs Phone: 703-600-2017 Email: brian.dodge@rila.org