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Transportation Management

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Transportation Management
In the past, transportation management was a tactical concern – a necessary cost of conducting business, which does not have much impact on profit margins. Today, rising fuel prices and increased pressures for improved service have made transportation management a strategic issue. Companies have to meet and exceed customer expections if they are to be the preferred service and goods provider.

A transportation management system (TMS) is an end- to -end software solution that is a part of supply chain management concerning transportation operations. It includes planning and optimization, execution, business intelligence, and freight payment. In addition, it also supports additional services, such as bid optimization, network modeling, yard management, benchmarking, and dock scheduling. Inbound and outbound networks too are supported on a global basis, typically helping companies to move freight from origin to destination cost effectively.

In this essay, I will be using Sargento Foods as a case study. The focus of the essay will be on analysing the existing TMS solution adopted by the firm, identifying their areas of weaknesses and recommending strategies that will help to improve the transportation system to better suit the evolving needs of Sargento Foods.

Background information
Sargento Foods Inc. is a family-owned business, employing approximately 1,300 people at four Wisconsin facilities, one in Washington, and one in South Dakota. They are one of the largest converters of cheese in the United States, offering a variety of cheese products marketed through four business divisions: Consumer Products Division, Food Service Division, Food Ingredients Division and Culinary Solutions.

Inadequacies of its existing system before the switch to Sterling TMS:
Sargento was managing their distribution and logistics with a hosted TMS solution which was not able to meet their operational requirements. When Sargento Foods planned orders into shipments, the

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