In modern logistics, the use of transportation management systems (TMSs) has become essential in exception management, the process of identifying, analyzing, and resolving anomalies in the supply chain.

“Exception management means knowing how to respond, and the best way to respond, to eliminate the risk of disruption and handle adverse events,” a Supply Chain 24/7 article said.

Common freight exceptions range from vehicle breakdowns and road closures to inclement weather, port congestion, and geopolitical events.

“Effective exception management leads to improved customer service, increased operational efficiency, and lower costs. With advancements in predictive intelligence, shippers are better equipped to be proactive, rather than reactive, when exceptions occur,” said a blog post from Windward, a maritime industry platform.

Poor Exception Management Comes with a High Cost

“It’s not a matter of if disruptions will occur in the supply chain, it’s only a matter of time until the unexpected strikes and creates an exception,” The Logistics of Logistics said. “An exception does not necessarily guarantee a late delivery; it simply means a roadblock or challenge has arisen that requires immediate attention. This is why end-to-end visibility in a supply chain is so important. The more real-time information you have regarding the location and condition of shipment, the more proactive you can be with exception management.”

Lack of end-to-end visibility can result in poor exception management, which can hurt your business in a number of ways.

Operational Disruptions

Unaddressed exceptions can lead to shipment delays, bottlenecks, customer dissatisfaction – and loss of business. These can be avoided with a TMS that manages exceptions and mitigates any potential disruptions in the supply chain. With a TMS, shippers can gain efficiencies by quickly identifying and addressing exceptions, reducing delays, and streamlining the entire supply chain.

Financial Impact

Poor exception management increases operational costs and inefficiencies. A TMS provides visibility to exceptions and helps shippers reduce their overall transportation spend through process optimization and increased efficiency. In addition, Windward said, “When exceptions are managed effectively, they are less likely to result in lost or damaged goods. This can significantly reduce costs associated with replacements or refunds.”

Brand Reputation Damage

Repeated exceptions that aren’t handled properly can destroy customer trust and damage a company’s reputation. Repairing that reputation can be difficult, if not impossible. With effective exception management, shippers can gain a reputation for being proactive – using TMS data to make better decisions, increase transparency, and enhance customer satisfaction.

Owlery: Exception Management Made Easy

Effective exception management, according to Windward, is a four-step process:

1. Detection when something goes wrong through real-time systems, reports from stakeholders, or automated alerts from software systems.
2. Analysis of the exception to understand its cause and impact.
3. Resolution of the exception, which could involve rerouting freight, expediting a delivery, or updating documentation.
4. Prevention of similar exceptions in the future because of previous detection, analysis, and resolution measures.

Exception management best practices, according to Supply Chain 24/7, include:

• Using artificial intelligence to automatically handle recurring exceptions.
• Choosing a TMS that enables automated exception management.
• Leveraging data on exceptions to understand why they occur and how to prevent them from occurring.
• Integrating systems with an overarching TMS to bring together all relevant data.

Owlery does all that and more.

Real-Time Monitoring and Alerts

Owlery’s TMS continuously monitors logistics operations, providing real-time visibility into shipments and processes. When an exception, such as a delay or disruption, occurs, automated alerts are triggered, allowing teams to respond immediately. This proactive approach helps minimize downtime and prevents minor issues from escalating into major disruptions.

Automated Workflows for Quick Resolutions

Owlery automates exception management workflows, streamlining the process of addressing issues. This ensures that appropriate actions are taken promptly, reducing manual intervention and improving response times. By automating the resolution process, companies can resolve exceptions faster and more efficiently, minimizing the impact on operations.

Predictive Analytics to Prevent Future Exceptions

Owlery leverages predictive analytics to identify patterns and forecast potential issues before they arise. By analyzing historical data and trends, the system can anticipate future exceptions, allowing businesses to take preventive measures. This forward-looking capability helps companies avoid disruptions and build a more resilient supply chain.

Owlery Satisfies All of Shippers’ Technology Needs

Owlery is an end-to-end supply chain platform designed to handle every aspect of shipping from order to payment. Owlery’s TMS software seamlessly integrates with other systems to provide a comprehensive solution to automate and streamline logistics processes, ensuring accurate, timely, and cost-effective operations.

Owlery’s TMS features include:

• Configurable, real-time exceptions.
• In-depth reporting and analyses.
• Centralized tracking data.
• Prebuilt shareable scorecards.
• Centralized bills of lading and receipts.

Owlery does it all, helping users save costs, boost efficiency, enhance decision-making, and improve decision-making. Get started with Owlery.

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