Ensuring inventory is in the right place at the right time and in the right condition has always been challenging. After years of supply chain disruptions, capacity constraints, and labor shortages, we are finally seeing signs of recovery.
However, shippers must still navigate a landscape that remains fragile in some regions and resilient in others. This demands strategic solutions that ensure inventory is optimized, adaptable, and cost-effective.
While the global supply chain is showing more stability, tools like transportation management software (TMS) are increasingly critical in maintaining this momentum. As companies strive to regain pre-pandemic efficiency, a TMS provides the technology to manage inventory levels, optimize transportation routes, and mitigate risks.
The Evolving Inventory Landscape in Bulk & Break-Bulk Shipping
The 2023 KPMG Supply Chain Stability Index, produced annually alongside the Association for Supply Chain Management (ASCM), confirms a general improvement in supply chain stability, but also highlights persistent fragility in certain areas. Factors like geopolitical tensions, cross-border patrol closures, and fluctuations in ocean freight continue to impact the movement of goods, particularly between Asia, Europe, and the U.S.
Despite these challenges, inventory levels are beginning to stabilize. KPMG reports that inflated inventories seen during the pandemic are now strategically decreasing, signaling a shift toward optimized inventory management. This is supported by the latest Logistics Managers’ Index (LMI), which found that inventory levels rose by 6.1 points in recent months, reflecting businesses’ efforts to prepare for higher demand while avoiding overstocking.
This is where multimodal transportation management software plays a critical role. By providing real-time visibility into transportation and inventory flows, a TMS enables businesses to better forecast demand, prevent overstocking, and respond to changes more quickly. Just-in-time inventory strategies, which are making a comeback, depend heavily on precise timing and efficient logistics—a core function of any advanced TMS. With the right system in place, businesses can ensure goods arrive exactly when needed, reducing the need for excess inventory and freeing up storage space.
Managing Costs in 2024
Although the supply chain is improving, managing costs related to inventory remains a concern.
KPMG highlights that while inventory optimization efforts are underway, automation and logistics challenges still pose risks to operational efficiency. Rising labor costs and ongoing geopolitical tensions are pushing companies to adopt more sophisticated tools to keep costs under control. The LMI also indicates that inventory costs are still rising, with the index reporting a 69 reading for inventory costs—well above pre-pandemic levels.
Transportation management software helps businesses mitigate these rising costs by providing greater control over transportation and warehousing. The system optimizes delivery routes, reduces idle time, and ensures that companies maintain lean, cost-efficient inventories. By lowering transportation expenses and maximizing warehouse utilization, a TMS directly contributes to a company’s bottom line, ensuring profitability in a volatile environment.
Technology Drives Efficiency and Growth
Technology continues to be the driving force behind improvements in inventory management. KPMG mentioned that automation is helping ease some of the competition for talent while improving operational efficiency. By incorporating transportation management software into their supply chain operations, companies can automate key processes like route planning, inventory tracking, and demand forecasting, reducing human error and ensuring more accurate, data-driven decisions.
Additionally, TMS technology enables companies to react quickly to geopolitical disruptions or fluctuations in transportation capacity. Real-time data, demand sensing, and predictive analytics are increasingly essential tools in an ever-evolving supply chain landscape. As Douglas Kent of ASCM notes, “We must continue to leverage data to monitor and adapt to the complex and ever-evolving supply chain landscape.”
Strengthening the TMS-Inventory Connection
In today’s supply chain environment, inventory management must be more than just reactive. Companies that leverage transportation management software are better positioned to manage their inventory levels efficiently, reduce freight management costs, and navigate disruptions. Transportation management software allows businesses to gain visibility into their operations, improve timing, and maintain leaner inventories while meeting customer demands.
As the global supply chain landscape continues to evolve, adopting resilient strategies, like those enabled by a TMS, will be key to long-term success.
IntelliTrans’ TMS seamlessly integrates transportation and inventory management, giving companies a unified platform to track performance, optimize logistics, and respond to market shifts. By consolidating data into one accessible system, IntelliTrans helps businesses stay agile, minimize costs, and improve inventory control, positioning them for success in an ever-changing supply chain landscape.
Learn more about our supply chain inventory management solutions.