The benefits of supply chain digitalisation following the G20: saving time, money, ROI

Economy-and-r-o-i : The massification of goods transport and the urgency of climate change have led the G20 countries to act quickly*. Supply chains must be optimised without delay to meet this CO2 objective. The benefits of digitalising your supply chain are many. It generates substantial financial and organisational gains. Thanks to these savings in time and money, the return on investment (ROI) is quickly achieved. Let’s take a look at these elements together.

A TMS (Transport Management System) software is a digital solution, dedicated to the management and optimisation of the Supply Chain.

Implementing this TMS project allows you to manage your supply chain and control flows and costs.

In 2016, a study conducted by DDS Logistics showed that more than 40% of companies were monitoring their supply function, stock management and logistics planning using spreadsheets and emails with no links between the various tools.

These solutions, time-consuming and sources of errors, are becoming obsolete.

The need to automate warehouses and ensure traceability of performance indicators demonstrates a multiple desire for proactivity.

Organise, monitor, analyse and improve are the four key verbs of this digital transformation.

TMS software such as DDS Shipper and Join2ship guarantee these needs while offering substantial gains by controlling the entire logistics flow and costs.

Time savings : digitising your supply chain reduces time-consuming tasks.

Supplier management can be time-consuming if not meticulously organised.

Dedicated processes are often obsolete :

• Catalogues scattered in warehouses,
• Data that is not updated…

A paper-based organisation can quickly turn into chaos. TMS software provides direct access to the various documents of suppliers and service providers. Catalogue data and prices are updated in real time. This system greatly reduces the operating time for purchasing and delivery management. Invoicing is also automated, in particular through a pre-invoicing system. The time saved by the company’s purchasing and invoicing functions is significant.

The organisational impact of the TMS solution should also be taken into account.

This tool is highly efficient and allows low value-added tasks to be automated. People can therefore be assigned to a new, more advanced task.

The stock view is one of the winners of implementing a TMS solution. With a complex supply chain, getting a clear and real view of stock (whether floating or not) is often a very tricky and time-consuming business.

The traceability system details the quantity of products at each stage of transport. This makes it much easier to get a clear view of the stock and saves a lot of time!

Saving money: significant financial gains from a successful transformation in terms of logistics and digitalisation.

SaaS or licence: the financial gain starts with the choice of installation

When implementing the digitalisation of the supply chain, the budgetary issue emerges very quickly.

Some clients are desperate for the service to be carried out on a fixed-price basis. Others are, from the outset, in favour of operating on a fee basis.

In Saas mode, the principle is to negotiate a monthly service, depending on the functions consumed, the number of connections or the number of users.

These innovative digital solutions operate in the cloud. They do not require the acquisition of software with licences dedicated to the company. Customer data is stored securely outside the company.

This mode of operation is a godsend for SMEs, small and medium-sized hauliers or industrialists who own a fleet of vehicles and have a smaller budget.

How does the digitalisation of your supply chain promote financial gains for the transport function?

In terms of the purchasing function of companies that have been digitised in this way, the immediate gain comes from the new management of invoicing.

The pre-invoicing functionality leads to a net reduction in this administrative and accounting task, which is proving to be time-consuming.

???? This functionality alone brings a 3% reduction in transport costs.

In addition, the gain due to the grouping of orders which aims to reduce the loading rate of trucks is added.

Optimising the delivery routes also reduces the distances travelled. The entire transport function sees its costs reduced.

Your cash flow is increased

The payment cycle is shortened by the pre-invoicing steps. This increases your cash flow.

The savings achieved by implementing pre-invoicing and automated control of issued invoices generate savings of up to 3%.

This percentage concerns purchasing budgets of up to several million euros, depending on the customer. The financial gain is therefore considerable.

Automated transport plans: a major cost advantage for your supply chain

The automated transport plan management functionality provides a major advantage.

Collaborative platforms such as Join2ship offer you the possibility of having the latest specifications and pricing from your service providers in real time.

For each type of shipment, it is thus possible for you to put them in competition. You enter your criteria (type of parcel, maximum CO2 emissions, route, etc.) and the software selects the appropriate carrier.

This competition promotes effective negotiation and better tariff conditions with its transport providers.

Digitalisation: a valuable aid for financial services

However, the financial gains are not just about the transport budget.

Our customer feedback shows that a company’s finance department has little visibility into the full cost of a product or the cost of a customer’s service.

???? The DDS Shipper TMS has a method of calculating the delivery cost for each customer.

This functionality is very pragmatic for monitoring the margin achieved on products and the negotiated delivery terms.

The TMS solution also provides an analytical view of the transport cost per product delivered or purchased.

A rapid return on investment after digitisation

With more than 20,000 users, DDS Logistics’ digital solutions provide a short payback.

The secret behind this short time to achieve an acceptable ROI lies in the project preparation phase.

DDS Logistics wants this to be as comprehensive and detailed as possible. The optimised specifications model is based on in-house calculations and various studies following feedback from our customers (base > 500 customers) and their recorded gains.

Opting for a TMS software is a long-term investment. The gains made will be recurrent and constant.

Contact our experts and let’s define together your specifications for an efficient digitalisation of your Supply Chain.