As the demand for transportation increases, so does the need for a resilient supply chain. In today’s delivery and digital-first market, many businesses are faced with common challenges like high transportation costs and inconsistent customer service. The solution? Adopting sustainable transportation strategies.

Enter: Collaborative Transportation Management (CTM). 

Whether your organization is looking to increase transportation capacity, simplify delivery communications, reduce costs, address delays in real time or strengthen customer relationships, embracing collaboration is at the core. In this guide, we’ve outlined everything you need to know about CTM, its long-lasting benefits and how to leverage it to future-proof your business. 

What is collaborative transportation management? 

Picture the foundation of your organization as a variety of gears and moving parts, all turning in different directions despite having a common objective. What if there was a way to mend the gaps and adjust placement with precision so the gears flow in unison? That’s where implementing a solutions-based strategy makes this possible. The “gears” represent the different stakeholders like logistics providers, shippers and delivery drivers while CTM represents the process of mending that gap. While the success of any business can be dependent on the abilities of each moving gear individually, it’s equally dependent on how they work together as a collective. Think of CTM as the golden switch, capable of linking together transportation systems and logistics in order to create a more effective workflow and optimize operations. With planning, tracking, inventory management and scheduling, CTM creates the possibility for streamlining, while also increasing visibility across the board.  

Key features and benefits of CTM

At the core, CTM is an efficient way for various companies and people to work together while creating a seamless process for transporting goods. With collaboration comes the opportunity to reap several benefits both internally and externally. From cost savings to enhanced visibility, there’s no denying the power of CTM.

Reduced transportation costs: Sharing transportation resources between organizations can maximize the use of what’s available while reducing the number of empty trucks on retainer. For example, various trucks that are delivering to the same area can batch together. This helps with cutting costs while optimizing delivery routes and improving ROI. CTM trucking together with transporting is a win, win… win.

Real-time visibility: A CTM provides real-time visibility into the entire supply chain, enabling stakeholders to monitor shipments, track assets, and make informed decisions.

Improved customer service and delivery times: When collaborating, companies can share information about supply chains to prevent delays, coordinate deliveries in real-time and improve flexibility. From there, the domino effect works its magic. When goods arrive when and where they’re supposed to, customers are satisfied. With transparency and accuracy also comes the prospect of improving customer loyalty and driving consistent business.  

Reduced environmental impact: Streamlining transportation is an easy way for companies to create more sustainable practices by reducing greenhouse gas emissions and fuel consumption—but it doesn’t end there. Single-use packaging (Think: cardboard boxes, plastic wrap and items made without recyclable materials) needed for transporting can be heavily decreased through CTM, benefitting both the planet and your business.

Risk mitigation: Collaborative planning and information sharing can help identify potential risks and disruptions, allowing stakeholders to proactively address them and minimize their impact.

Improved efficiency: CTM helps to optimize transportation routes, schedules, and capacity utilization, leading to increased efficiency and reduced costs.

Who is CTM for?

From owner-operators to suppliers and even customers, CTM is for any transportation company—no matter the size. Large-scale retailers may use CTM for the reduced cost impact and improved delivery times while other companies may use CTM for better sustainability. Here’s a breakdown of who can leverage a CTM best:

Manufacturers and distributors: CTM can help optimize transportation networks, ensuring that goods are delivered on time and at the lowest possible cost.

Retailers and e-commerce companies: CTM enables efficient management of transportation processes, ensuring that products are available to customers when they need them.

Third-party logistics providers (3PLs): CTM allows 3PLs to better manage their clients' transportation needs, offering improved service levels and reduced costs.

Carriers and freight brokers: CTM enables carriers and freight brokers to collaborate more effectively with shippers and logistics providers, leading to better utilization of assets and increased profitability.

The bottom line? Whether they operate in high-density cities or rural areas, CTM is useful for large corporations and small businesses alike. Through collaboration, distributors, manufacturers, and suppliers can maximize their resources and optimize their supply chain strategy.

The past and future of CTM

For decades, many companies approached transportation by relying heavily on third-party logistics providers or their own fleets of trucks, resulting in high costs, unnecessary fuel consumption and far too many trips. However, as supply chains have become more complex and interconnected, the need for collaboration and coordination has become more and more apparent. And as organizations started to collaborate, they’ve noticed the ease in combating some of the common challenges.

Though CTM has been around for decades, it has never been as widely advanced or used as it is today. Our instant access to connection and technology makes it possible for companies to work together in new and innovative ways. The future of CTM relies heavily on the advancement of technology to keep coordination in flow by allowing companies to communicate seamlessly. As the world continues to increase connection, more and more companies will have a need for cost-effective and sustainable transportation solutions.

How Rose Rocket TMS is leading the way in collaborative trucking

Rose Rocket’s Transportation Management System (TMS) focuses on collaboration and connectivity. Our platform is designed to help businesses of all sizes manage their transportation processes more efficiently and effectively. Some of the key features that help to support a collaborative trucking system include:

Centralized communication platform: Rose Rocket TMS offers a centralized platform that facilitates seamless communication between all stakeholders, ensuring that everyone is on the same page.

Real-time visibility and tracking: The platform provides real-time visibility into the status of shipments, allowing stakeholders to make informed decisions and proactively address potential issues.

Advanced analytics and reporting: Rose Rocket TMS offers powerful analytics and reporting tools that enable businesses to better understand their transportation operations and make data-driven decisions.

Integrations: The platform can easily integrate with other business systems and applications from ELD’s all the way to accounting platforms (including softwares & businesses such as Samsara, Quickbooks, Truckstop, Project 44 and RMIS, just to name a few). With these, the platform is able to provide a singular overview of the entire supply chain.

Scalability and flexibility: Rose Rocket TMS is designed to grow with your business, offering a scalable solution that can accommodate changing needs and requirements without the worry of having to swap your softwares.

By focusing on collaboration through a comprehensive set of tools and features, Rose Rocket TMS puts itself at the forefront of the CTM revolution, driving innovation and setting new standards for the industry.

The bottom line

When companies and organizations work as a collective in transportation, they have the potential to undergo a supply chain transformation while improving cost efficiency, customer service and environmental sustainability. While CTM enhances supply chain, streamlining your truck business starts with strengthening transportation operations using a Transportation Management System.

If you’re curious about how a TMS can help your business lean into collaborative transportation management, book a demo with one of our Rose Rocket logistics experts –  as the #1 Rated TMS, we’d be happy to help guide you through this process!