• 11
    August
    2016

    Tips to Manage Supplier Risk Involved in Transportation Management

    The global transportation industry is valued at $4 trillion and employs 10 million people and serves hundreds of thousands of small, medium and large businesses. The sheer size of this industry exposes it to many risks especially from the point of view of the supplier. For most businesses directly or indirectly involved in transportation and logistics industry mitigating risks has become the primary goal. And this is where Transportation IT solutions are helping them reduce exposure to risk, cut down on operational costs and streamline operations.

    Read on to know how IT solutions help in streamlining your Transportation business

    The Transportation Management System market alone is expected to touch the $20 billion mark in 2020 signaling the value that businesses are seeing in adopting technology as a part of their daily operations. Here we share with you a few tips that help manage supplier risk involved in transportation management.

    The Transportation Management System market alone is expected to touch the $20 billion mark in 2020 signaling the value that businesses are seeing in adopting technology as a part of their daily operations. Here we share with you a few tips that help manage supplier risk involved in transportation management.

    ● Identify Your Risks – Risks are unique to every supplier. For instance a supplier dealing with glass may see the product itself as a risk while a company operating in war zones and trouble torn territories may face external risks. It is very important to identify the risks and also prioritize risks if there are many. These risks need to be quantified to identify the challenges they pose for your business.

    ● Don’t Be A Fence Sitter – Transportation IT solutions are evolving in a state of flux so much so that some suppliers are waiting on the sidelines for the products to mature. But you should move early as this will allow you to understand your risks better and get a tailored product that caters to your risks. Also as your business evolves so will the IT solution around it.Tips to Manage Supplier Risk Involved in Transportation Management

    ● Look for Tailored Solutions – There are companies that are selling off-the-shelf solutions to mitigate risk for suppliers. The fact that they cater to everyone from a milk supplier to those vendors supplying aviation accessories questions their functionality and application. As we have already stated your risks are unique and hence you need a tailored solution that has been designed or customized keeping your risks in mind.

    ● Real Time Processing – Your Transportation IT Software would gather tons of information and this is where real time processing capabilities becomes important. It should be able to automatically create meaningful information out of raw data and alert you in advance about the risks with your business operation.

    ● Put It Through Serious Testing – What can go wrong for your business? Almost everything in the worst possible circumstances and this is what you need to test your software for. Simulate the worst possible internal and external factors that you may need to operate in and this will help you test the utility of the solution and also identify the problem areas that they need to be fixed.

    To manage these risks and streamline the supply chain you need to adopt the right set of tools and software. At Semaphore Software we build custom Transportation Software & Logistics Management Software to meet the niche needs of suppliers across the world. From small businesses to multi-million dollar enterprises we have been proud partners of businesses across industries. If you have any queries regarding our software and how it can help your businesses, please write to us at info@silvertouch.com.

    Shruti Vasudevan

    Shruti is a technical content writer working with Silver Touch Technologies Ltd. She keeps keen interest in researching and writing on technical topics. She is a B.Tech graduate in Electronics and Communication and focuses on learning new things.

    More Posts - Website

    Follow Me:
    TwitterFacebookLinkedInGoogle PlusYouTube