Based on numerous transportation maturity assessments performed for customers in diverse industries, we’ve identified distinct organizational archetypes – each with unique challenges. Understanding typical characteristics for your transportation management set-up forms the basis for strategic decisions. By making decisions that align with their transportation management archetype, businesses can improve efficiency and cost structures, for instance, to secure a competitive advantage.
Below, we give a short overview of each archetype and a few examples of how these kinds of organizations can take advantage of their strengths and elevate their transportation management strategies.
Click on an archetype to learn more
Digital innovators
Established engineers
Emerging disruptors
Cost-conscious network optimizers
Digital innovators: focus on strengths with talent development and collaboration
Digital innovators use advanced technologies such as AI and data analytics to optimize transportation management processes. Commonly automotive OEMs and FMCG businesses, digital innovators rely on centralized structures such as control towers to manage their global supply chains. To continue to thrive, digital innovators can focus on promoting talent and collaboration.
Invest in talent development
A highly digitized environment requires a skilled workforce. Prioritizing talent development ensures that teams are proficient in utilizing advanced technologies, fostering innovation and staying up to date with industry trends.
Promote cross-functional collaboration
Enhancing collaboration between departments ensures seamless integration of digital tools. Breaking down silos promotes real-time data sharing, fostering efficiency and responsiveness. Additionally, collaboration with external partners and stakeholders even beyond the organization represents the most advanced form of collaboration, further enhancing integration, real-time data sharing, and operational efficiency.
Established engineers: leverage data integration and advanced technology
Established engineers are characterized by their balanced approach to transportation management, in which historical practices and emerging digital technologies have their place. The organizations in this cluster typically include machinery manufacturers, businesses working with durable consumer goods, or automotive suppliers. This archetype puts less emphasis on data integrity and digitization of transportation management processes, resulting in decentralized management approaches. To elevate their transportation management strategies, established engineers should consider leveraging existing data and adopting advanced technologies.
Take a first step towards advanced transportation management
Embracing advanced transportation management technologies and methodologies is a progressive step for established engineers. Exploring advanced tools and analytics can provide valuable insights and opportunities for optimization.
Standardize and digitize main processes
Standardizing and digitizing key processes streamlines operations, reduces manual effort and increases efficiency. This approach helps established engineers adapt to the digital age while maintaining legacy strengths.
Emerging disruptors: balance innovation with strategic partnerships
Most commonly businesses in the e-commerce, B2C consumer goods and food delivery spaces, emerging disruptors are agile later-stage startups, scale-ups and visionary entities redefining supply chains with strategic digitization efforts. They focus on growth, expanding their market presence, customer base and networks. This is done largely by tailoring networks to specific market and service requirements, and through partnerships that enable emerging disruptors to leverage the latest technologies. To continue their path of success, these organizations should balance innovation with strategic partnerships.
Identify partners to ensure growth
Outsourcing transportation management to experienced partners can provide emerging disruptors with the expertise and scalability needed for rapid growth. Partnering with specialists can unlock new opportunities and reduce the burden of managing complex logistics in-house.
Continue developing talent
A skilled and adaptable workforce is crucial for staying at the forefront of transportation innovation. Emerging disruptors should invest in ongoing training and development programs to keep their teams updated on the latest industry trends and technologies.
Cost-conscious network optimizers: optimize purchasing and integrate processes
For cost-conscious network optimizers, economic efficiency is a priority, and digitization is often a secondary concern. Generally active in retail and FMCG, these businesses tend to have limited integration between transportation management and adjacent processes, including between freight cost purchasing and execution. Cost-conscious network optimizers should focus on strengthening their purchasing teams, as well as automation to help break down organizational silos.
Foster strengths in purchasing
Enhancing procurement and purchasing capabilities is critical for securing cost-effective transportation. Cost-conscious network optimizers should invest in strengthening their purchasing teams and processes to negotiate favorable rates.
Enhance alignment between freight purchasing and execution
Ensuring a seamless connection between freight purchasing and execution processes is critical for cost-conscious optimization. Align these functions to minimize discrepancies and maximize cost savings.
By embracing a tailored strategy, organizations are well-positioned to succeed in the dynamic and challenging realm of transportation management.
Interested in more strategic recommendations for your organization?
Download the white paper “Unlocking archetypes in transportation management”.
Looking for more customized recommendations to elevate your transportation management? We’re looking forward to hearing from you.
Authors
Hanka Smiejczak
Vice President
4flow consulting
Jonas Goldenstein
Principal and Head of Transportation & Networks Practice
4flow consulting
