Freight Data Management: Starts You on the Path of TSM Mastery
Beyond the basic knowledge of Freight Audit, companies have started to see the importance of all the intricate components in supply chain. The evolution of Transportation Spend Management (TSM) represents a shift in the mentality of global shippers from chasing and recovering savings to leveraging performance and spend data to control their future.
Transportation expenditure often averages in a range of 3% to 10% of annual sales revenue, depending on the industry, vastly lowering a product’s profit margin. It is often seen by CFOs as a major focus area of financial optimization. You can control these costs through optimizing your Transportation Spend Management processes. Let’s take a look at how moving from basic freight data management to mastering TSM will benefit your company.
While Freight Audit continues to be an important element to controlling your spend management, Trax has developed a way to more broadly manage the entirety of freight data within companies. “But that’s just the beginning, over the past two years we have launched modules that begin to transform the customer’s transportation spend program from reactive auditing to proactive optimization”, said Trax CEO Hamp Wall in a recent interview with Spend Matters.
At Trax, we have a model that provides complex companies a roadmap to go from a limited view and control of logistics performance to efficiently commanding performance across all modes of transportation at a global scale. The stages of our maturity model take you from chasing savings to leading the market. This singular and wholistic control of your freight data incorporates the carrier data and performance elements of transportation into your model so that you evolve past chasing invoice errors and into data driven performance management of your transportation program. Chris Cassidy, Executive Vice President of Commercial and Strategic Partnerships at Trax believes, “Today’s global enterprises strive to create end-to-end supply chain visibility which drive cost optimization and improve decision-making towards network efficiencies. Transportation Spend Management with Trax is uniquely positioned to deliver global solutions that combine complex data from shippers, carriers and partners regardless of carrier and mode complexity to yield enterprise-wide value creation.” Additionally, you have integrated the financial data and processes into your model to optimize finance and transportation together, resulting in enterprise-wide value.
Trax is the global leader in Transportation Spend Management solutions. We partner with the most global and complex brands to drive meaningful optimizations and savings through industry-leading technology solutions and world-class advisory services. With the largest global footprint spanning North America, Latin America, Asia, and Europe, we enable our clients to have greater control over their transportation performance and spend. Our focus is on your success.