What is Reliability in Supply Chain Management?


What is reliability in supply chain management?

Supply chain reliability refers to the degree to which a supply chain yields consistent performance. Increasing reliability, reducing inventory and preparing for demand are top priorities for supply chain professionals.

Why does supply chain reliability matters?

Reliability is essential in implementing an operative supply chain management strategy since it enhances productivity and cuts costs. It also warrants inventory to be delivered to customers’ on-time. On-time, consistent performance is frequently attributed to shipper/carrier collaboration.

Strong shipper/carrier relationships are also crucial in maintaining or improving transportation performance. In transportation, carrier connectivity is essential to the protection of the supply chain.

How TMS helps with the supply chain?

A TMS helps shippers move freight efficiently. In order to become reliable, a shipper’s TMS has to connect to a carrier network. Additionally, carrier connectivity helps shippers secure capacity and avoid disruption, resulting in a more stable supply chain.

Using a centralized TMS, shippers can access data directly from carriers and gain visibility into the shipment status. Centralized, carrier-connected TMS measures and reports detailed KPIs for inbound and outbound freight moves, monitors vendor and carrier performance, and optimizes route selection. TMS software benefits shippers because it reduces overall transportation spend and gives customers the consistency they expect, due to the improved safety of this part of the supply chain.

In supply chains, best practices circle around increasing throughput, minimizing costs and optimizing resources and efficiency. Managing the end-to-end process is simpler with a centralized TMS. This software is an effective way for shippers to identify inefficiencies, analyze operational drawbacks, and implement changes.

To improve reliability in the supply chain, companies are turning to transportation management. With rising transportation costs and undependable capacity, carrier connectivity provides an answer for improved performance, service, management, and safety.

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