Harnessing Your Domestic TMS as Reshoring Trends Continue

by | Mar 17, 2021 | Transportation Management

Of the many things 2020 taught us, one key takeaway was understanding the global supply chain’s volatility. In the blink of an eye, offshoring manufacturing halted worldwide, forcing companies to find alternative ways to meet demand and explore potential reshoring possibilities. To make up for the higher costs of in-country sourcing, businesses search for ways to save margins. And to mitigate risks in the supply chain, companies need reliable and predictable transportation. One way to solve both issues is by using a modern-day transportation management system (TMS) to take back control of the supply chain and realize more efficiencies and cost savings for domestic transportation operations.

Trends Toward Reshoring

As the COVID-19 pandemic took hold, many companies were left struggling with gaps on their supply-side because trade partners around the world stopped manufacturing processes. Even when manufacturing came back online, global transportation providers still weren’t prepared to move goods at the same pace. Whether there were truck driver shortages in other nations or overloaded ports on America’s shores, bringing in cargo from other countries proved to be challenging. Despite the offshoring problems posed by COVID, reshoring was already trying to make a comeback pre-pandemic. During the 2009 recession, the global trade multiplier fell for the first time in three decades and still has not recovered. Also, rising labor and costs in places like China have triggered questions about how much savings offshoring really provides, and even Chinese manufacturers have started offshoring themselves.

Supply Chain Factors to Consider with Reshoring

Revaluating sourcing is no easy task, and a multitude of factors need to be considered before making any moves. However, many companies are currently contemplating this shift, and thinking about variables early-on could prove invaluable if a reshoring situation is required.

Examples of basic questions to start the thought process include what new suppliers can produce the quality of product that meets customer expectations? Do potentially higher manufacturing costs mitigate the risks of global trade? Does it make sense to bring everything back, pivot toward nearshoring, or create a parallel supply chain for an added safety net?

But there are more complicated questions too. Particularly around creating efficiencies and saving money for your new domestic transportation. For example, if most of your manufacturing was abroad with the same port to plant lanes, do you have a domestic TMS? If not, then it’s likely you will need one to manage your new volume. And if you haven’t checked the TMS market in the past five years, you’ll be happy to see significant technology improvements, especially around usability and simplified processes for complex challenges.

Now, what if you do have a domestic TMS? Does it deliver the advanced automation, complex carrier rating, and required freight options to maximize cost savings? Is it scalable enough to handle increased domestic volumes with your current staff? And maybe most importantly, is it pandemic proof, as in is it cloud-based so your employees can use it anywhere?

If your answer to these questions is no, then it makes sense for you to explore how a modern-day transportation management system like 3Gtms can help boost your bottom line and simplify your new domestic transportation needs.

How a TMS Helps Solve Reshoring

If you intend to bring manufacturing back home, there are many tools that a domestic transportation system like 3Gtms provides to help you transport your raw materials and finished goods.

  • Optimizing Spot Purchasing Transportation – Saving money on raw materials is a priority, so purchasing when rates are low is a no-brainer. 3Gtms’ route planning will automatically create the most efficient and cost-effective lanes to transport your spot purchases to your manufacturing centers.
  • Real-Time Complex Carrier Rating – 3Gtms provides and locks real-time carrier ratings, so you receive the market rate on freight transportation, allowing you to choose the most affordable way to move your freight.
  • Load Consolidation Automation – Save money by automatically maximizing trailer capacity with load consolidation, giving you the most value on each move without taking up your employee’s precious time.
  • Dynamic Freight Options Receive the most economical options to move your freight, whether it’s with full truckloads (TL), less-than-truckloads (LTL), parcel, multi-stop, dynamic pooling, and more.

Putting together a scalable transportation strategy spiderwebs into a complex matrix of different routes, carriers, load types, and other variables. Using a legacy platform with limited functionality, integrations, and an on-premise approach will never deliver the flexibility needed to navigate today’s supply chain. Taking advantage of advanced technology can set your reshoring initiative up for success while minimizing common pain points associated with your new domestic transportation needs. “To support reshoring efforts, automation as well as supporting software is so important for a successful project,” said Rosemary Coates, Founder and Executive Director of the Reshoring Institute (www.ReshoringInstitute.org). “Software that provides visibility and optimization for transportation becomes crucial for controlling costs, providing visibility in support of decision-making, and most importantly in serving customers,” she said. “3G is perfectly positioned to be a critical link in supply chain management.”

3G’s modern-day TMS provides the tools required to transport your goods effectively. Whether you’re a broker, shipper, or a 3PL, 3Gtms delivers the features needed to execute transportation management effectively. 3Gtms manages the entire order-to-cash process in real-time with next-level functionality that provides efficiencies every step of the way. And building those efficiencies has sped up drastically. Setups that used to take months to years with dedicated consultants can now be done in weeks to months with 3G’s experienced professionals. And the bottom line, TMSs typically save most shippers 10-20% while also providing you with a controlled fulfillment process that delivers the competitive edge and reliability you desire.

Want to Learn More?

Contact us to learn how you can increase savings and improve your processes with 3Gtms. We’re here to help if you’re interested in exploring how 3Gtms can deliver a Fully Connected Transportation Management System to you. For more information on 3G, visit www.3gtms.com, call 203-567-4610, or email sales@3gtms.com.

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