Technology has taken the lead in modernizing every aspect of our existence and the same is true for the channels through which people avail the goods they need to improve their quality of life. Technology advancements assist with innovating one such channel - logistics.
A hundred different things go into the smooth functioning of the supply chain process and logistics plays a key role. Several core activities – from carrier selection or freight forwarder to route planning to cargo management and tracking – need to be handled cautiously to ensure timely customer delivery. After all, customer satisfaction is all that matters for a business to grow.
Now, businesses operate in several ways and their logistics needs differ. Intermodal and multimodal logistics models have been beneficial strategies and here we’ll explore how a TMS helps streamline these processes.
Modes of Transport Enabling Cargo Movement
The general categories that enable intermodal and multimodal shipping and transshipment, within and beyond national borders, include:
- Cargo Trucks
- Freight Trains
- Container Ships
- Aircraft Transfer
An Overview - Intermodal and Multimodal Logistics
The two terms – intermodal and multimodal – are often used interchangeably but the two branches are entirely different.
Intermodal – The cargo shipment process where each transport medium is handled by a separate entity. Independent contractors have separate responsibilities for ensuring the successful delivery of the goods.
Advantages:
- The ability to select multiple carriers for each leg of transportation leads to lower rates
- More flexibility in handling the movement of goods from one point to another
Multimodal – Refers to the cargo movement process under a single contract or bill of lading, involving multiple modes of transport. Separate transportation mediums are handled by a single entity or multimodal transport operator (MTO), covered by the multimodal transport document (MTD).
Advantages:
- Lower operational costs due to a singular tracking link
- Lower logistics coordination efforts required to deliver goods
- Higher security assurance
TMS - Streamlining Logistics Across Different Modes of Transport
Various operational issues arise in intermodal and multimodal logistics which can be resolved with technology. A transportation management system (TMS) is the ideal data-driven platform to automate the functionalities and the advancements include automated route plan optimization, tracking, load management, contract management, reverse logistics, and more.
The two primary TMS user groups can be categorized as:
- Manufacturers and Distributors
- Third-Party Logistics Providers (3PLs)
Let’s dive deeper into the benefits of TMS in managing intermodal and multimodal logistics functionalities –
Higher Vehicle Visibility
- Real-Time visibility in truck movements – By using TMS, enterprises get real-time visibility across multiple modes of transportation, enabling proactive issue resolution.
- Better Communication Channels – To improve communication among carriers, TMS provides centralized data access.
Optimized Costs
- Route Optimization – Businesses can select the most cost-efficient routes by adequately considering transit times, saving valuable fuel costs.
- Load Optimization – Consolidating shipments reduces empty miles and reduces logistics costs.
Improved Transport Coordination
- Selecting Mode – Automated transport mode selection (road, rail, or sea) based on delivery schedules and costs is enabled by TMS.
- Optimized Transitions – TMS facilitates easy mode transitions by automated coordination of schedules and documentation.
Data-Based Decisions
- Data Analytics and Reports – Businesses gain valuable insights into several performance metrics such as transit times and costs involved.
- Proactive Actions – Data trends enable predictive analysis of potential delays and suggest alternates.
Supports Regulatory Compliance
- Document Management – The automated TMS is an efficient tool for generating and managing several trade compliance documents (e.g. – customs forms).
- Risk Management – TMS enables the identification and mitigation of risks involved with multimodal transportation.
Higher Customer Satisfaction
- Automated ETAs – Automation enables real-time updates and generates accurate ETAs that enhance customer confidence.
- Issue Management – Immediate actions can be taken to address potential delays or disruptions, improving service reliability.
One Future-Ready Solution for Multiple Transport Modes
Intermodal and multimodal logistics can be transformed by implementing a TMS. There are pros and cons of both and no matter what the shipper’s choice, an automated management system makes the job easier by removing the risks associated with manual handling.
Maximizing the benefits of TMS implementation requires collaborating with an experienced software partner.
