March 27, 2024 Transportation Providers Drive Manufacturers’ Success

Transportation providers increasingly have data-driven capabilities, enhancing visibility, sustainability and overall supply chain resiliency for manufacturers.

By Jenny Perlitch, CEO, Perlitch Transport

In the wake of a chaotic few years in the global supply chain, including factors such as geopolitical tensions, trade disputes, and climate change-induced disruptions, manufacturers have recognized supply chain resiliency as vital to their success. What many may not realize is the potential of transportation providers to contribute to manufacturers’ resiliency initiatives. Even as manufacturing has embraced “Industry 4.0” – defined by McKinsey as “the next phase in the digitization of the manufacturing sector, driven by disruptive trends including the rise of data and connectivity…” – so has the transportation sector embarked on a digitized, data-driven approach. Increasingly, these providers offer expertise in route optimization, alternative logistics solutions, and advanced tracking technologies, improving visibility, enabling proactive decision-making and overall enhancing supply chain agility.

Visibility: The Key to Proactive Decision-Making

One of the most significant capabilities transportation providers can offer manufacturers is improved visibility across the supply chain. Advanced tracking technologies and real-time data analytics empower unprecedented levels of transparency into the movement and state of goods and raw materials. This enhanced visibility not only enables proactive decision-making but also facilitates rapid response to potential disruptions.

When choosing a transportation provider, manufacturers should look for proven visibility solutions. These may include GPS tracking systems that provide real-time location updates and estimated arrival times for shipments, enabling manufacturers to plan production schedules and inventory levels accurately. Internet of Things (IoT) sensors can monitor environmental conditions, such as temperature, humidity, and shock, ensuring the integrity of sensitive goods during transit.

Data-Driven Insights for Optimized Operations

Data-driven operations have become the industry norm in the modern supply chain landscape.  Comprehensive reporting and analytics capabilities can provide detailed insights into key performance indicators (KPIs), such as on-time delivery rates, transportation costs, and carbon footprint, enabling manufacturers to optimize their shipments and ensure support of their sustainability goals.

This data is often a missing piece that fits into the larger puzzle of inventory movement, logistics processes, and supply chain management. By analyzing a comprehensive set of historical data, real-time information, and market trends, transportation providers can identify vulnerabilities, assess the impact of disruptions, and develop contingency plans. Utilizing data analytics to optimize routes aids in cost control and meeting sustainability targets by identifying the most fuel-efficient paths. Furthermore, predictive analytics can help identify potential supply chain bottlenecks before they escalate into significant disruptions.

Seamless integration between transportation providers’ transportation management systems (TMS) and manufacturers’ enterprise resource planning (ERP) platforms, such as Oracle, SAP, and others, serves as a crucial indicator of optimized operations. This integration, facilitated through electronic data interchange (EDI) and application programming interfaces (APIs), enables real-time data exchange between client and transportation provider, fostering transparency and agility.

Sustainable and Resilient Transportation Solutions

Manufacturers are being held to increasingly higher standards of environmental stewardship – for example, the Inflation Reduction Act has set ambitious goals in reduction of U.S. emissions – and choosing a transportation provider with a commitment to sustainability can serve as a key component of an environmental, social and governance (ESG) strategy. Sustainability plays a part in increasing supply chain resilience. Sustainable practices often translate into greater operational efficiency, reduced costs, and increased adaptability to regulatory changes and evolving consumer preferences.

Less-than-truckload (LTL) and less-than-container-load (LCL) shipping enable consolidation of smaller shipments, reducing the number of partially filled trucks or containers on the road. By maximizing capacity utilization, LTL and LCL options minimize the carbon footprint and improve overall route efficiency. Additionally, transportation providers should be incorporating alternative fuel vehicles such as electric and hybrid trucks into their operations.

Manufacturers do not have the ability to control labor shortages, raw material prices, and other factors that may increase their operating costs. However, they do have the ability to take control of their choice of transportation providers. To future-proof supply chains for resiliency, manufacturers must proactively seek out and collaborate with transportation providers that prioritize continuous innovation, sustainable practices, and data-driven visibility. By doing this, manufacturers are not just preparing for today’s obstacles, but paving the way for a resilient future.

About Jenny Perlitch
Perlitch Transport provides premier over-the-road transport, TMS, and logistics services covering North America, including the remote regions of Alaska and Newfoundland. As Founder and CEO, Jenny has spearheaded technological innovations that have greatly improved efficiency, sustainability and coordination across the company’s operations, empowering growth, recruitment and retention. Utilizing her expertise as a software engineer, Jenny designed PT’s proprietary TMS, which integrates with multiple ERPs, Oracle, SAP, the FMCSA board, and with Equifax for full visibility. Optimization, integration and customization can all be done in-house without relying on a third-party software provider.

Beyond business acumen, Jenny’s genuine care for employees and customers defines her leadership. She seamlessly intertwines innovation, inclusivity, reliability, and integrity, creating a workplace that reflects her unwavering commitment to both professional excellence and social responsibility. Her own immigrant journey (from Ukraine to Canada), building her career from the ground up, drives a dedication to empowering others and building a business that prioritizes both its people and its purpose.

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