Case Study: “Strategic Solutions Inc.”

A transport management system (TMS) enables automation of functions such as routing
and rating, analytics, optimization, and carrier selection. Strategic Solutions are in need of an
application that is capable of assessing different transportation scenarios and selecting the best
mode at the least cost. Once a routing choice is made, a TMS software effectively manages the
load tendering with options to track and trace a consignment. While TMS works efficiently
between order processing and distribution systems, electronic data interchange (EDI) is used for
communication. EDI replaces email, postal mail, and fax in a company’s communication needs
by eliminating the need of people to constantly process documents.
EDI eliminates the challenge of slow processing and errors that are caused by depending
on people. It also enables buyers to purchase orders that go straight to the appropriate application
for real time order processing. EDI handles documents such as purchase orders, shipping notices,
inventory documents, and invoices. Strategic Solutions work in an environment where speed
and accuracy are major determining factors in profitability. Slow processing and delivery means
that the company will begin to gradually lose market share to other companies that are well
equipped with technology, that handle logistics processes efficiently.
Question 2

Surname 2
Scott should invest in both EDI and TMS due to major benefits of utilizing EDI within a
TMS. On their own, these two types of software would accomplish only a part of what a
management system should in the given business environment. Although the starting cost of only
one solution is lower, the company will incur more costs and inefficiency by having people
perform tasks that should be automated. When combined, EDI complements TMS and vice
versa. For instance, Scott will be able to cut all costs associated with paper, reproduction,
printing, filing, and postage. This will increase the productivity of the company. Companies cut
costs by at least 35 percent when they incorporate EDI. With EDI within the TMS, chances of
lost or incorrect orders are eliminated. This accuracy saves valuable time and avoids disputes.
The cost benefits analysis of utilizing EDI is very apparent specifically due to the time and
money saved. In Strategic Solutions case, Scott will not have to use an outdated email and
telephone information exchange method for managing orders. The speed and accuracy of using
both TMS and EDI will also increase their customer satisfaction rates. It will also enable
Strategic Solutions staff to focus on higher-value tasks and boost productivity. Moreover,
adopting both systems reduces lead times for new products and product enhancement. Scott will
also benefit from the improved capacity for faster decision-making and responsiveness to
dynamic customer demand.
Question 3
The key considerations for Scott when deciding on the best possible systems to
implement would be speed and accuracy. The best system will enable Scott to improve the
company’s customer service through reporting and analytics features. The most efficient and
effective system will analyze Scott’s needs every time he gets an order and check within the
system to provide the courier with the best optimization between cost and speed. He will also

Surname 3
need to consider a system that is reliable and proven to help his company optimize processing
and delivery operations through effective routing and rating.