Transportation Management

This chapter provides an overview of transportation management processes in a supply chain. Transportation management processes address the shipping requirements for a supply chain. Transportation planning and execution optimizes the loads, routes, and schedules; helps in determining the best resources and carrier for the lane; provides shipping estimates and validates carrier invoices; and helps in tracking these shipments, thus providing visibility of merchandise in transit. Planning and execution functions can optimize both inbound and outbound shipments. Freight audit and verification functions validate carrier invoices and establish compliance with the contractual charges and other terms and conditions. These functions are supported by transportation procurement processes. Fleet management processes support the requirements of managing a private fleet that could be owned or exclusively leased. Managing a fleet requires that these assets are effectively utilized and maintained. Asset management functions support lifecycle management of these assets by planning their introduction, maintenance, and retirement dispositions. Fleet scheduling provides driver management and compliance with government regulations.