Transportation management solutions have become popular in recent years as businesses recognize their value. A transportation management system, which can take many forms, is the technology that businesses employ to organize and facilitate supply chain logistics. Transportation Management Services can be utilized for a variety of functions, including shipment planning and execution, optimization and tracking of goods movement, preparing and organizing shipment documents, monitoring transportation assets, and more. A TMS can potentially impact the whole supply chain, from inbound shipments and warehouse efficiency to outbound shipments.
On-premise, cloud-based, or SaaS transportation management systems are all options. A company’s specific demands and future ambitions determine the ideal form of TMS. Finding the best software can have a significant impact on your business. Below are the benefits your business can enjoy when you invest in the ideal form of TMS.
Access to Better Shipping Prices
The most significant advantage of utilizing a Transportation Tms is lower freight costs. This occurs for a variety of reasons. Most TMS solutions draw in freight rates from multiple carriers, allowing shippers to examine choices rapidly inside a single platform rather than spending minutes or even hours looking. Shippers who request pricing directly from carriers frequently utilize generic base rates and lanes, but TMS solutions frequently incorporate carriers’ individual base rates into their reported quotes.
As a result, carriers provide less competitive pricing. However, having a TMS encourages carriers to provide aggressive pricing because it improves the likelihood that they will be satisfied with the results. But how much freight savings are provided by transportation management systems? The answer depends on the rates a company received prior to switching, but estimates imply that implementing a TMS can save businesses between 3% and 12% on freight expenditure.
Aside from saving money, a TMS reduces the time spent completing shipments because shippers may often purchase shipping within the platform.
Have a Primary Source for Supply Chain Visibility
Most TMS solutions feature real-time tracking, which is useful for both dock and warehouse personnel and sales teams. Team members can get real-time updates within one platform rather than needing to visit various websites for updates. Trucking Management Software with analytics and reporting capabilities allows enterprises to report on enterprise-level performance, carrier performance, and more.
Increased Efficiency
Because the optimal supply chain is one that runs smoothly and efficiently, having technology that simplifies operations can be a game changer. Transportation software automates processes that formerly required manual data entry, in addition to saving time on route optimization and identifying the best carrier. This automation eliminates human errors, which result in wasted money and time spent correcting mistakes. Many TMS combine with an organization’s existing technologies to increase efficiency.
For example, you can link your transportation software with a warehouse management system (WMS), order management software, or enterprise resource planning (ERP). It can also be linked to customer communication systems to improve customer service by automatically sending shipping updates to customers. This eliminates a significant number of calls from customers inquiring where their shipments are, providing another way for logistics teams to save valuable time.
Improved carrier performance.
A TMS can help your business evaluate and analyze expenditures, but that’s just the beginning. Companies can use Transportation Management System Software that records damage rates, on-time delivery, and other metrics to determine which carriers provide the best services and which need to improve. With that information, shippers can make better decisions about preferred carriers and have more bargaining power with underperformers. No matter what you’re shipping or to whom, on-time delivery is a competitive advantage that will keep customers coming back for more.
Does your logistics partner negotiate on your behalf with carriers? Even in those cases, knowing carrier performance statistics is beneficial. Simply ensure that your business partner is aware of the information and is prepared to discuss it with carrier staff.
The Ability to Grow
Assume your organization has a small shipping staff that is fully operational. A new client places a record-breaking order, requiring twice as many shipments to be sent out each week. Keeping up is impossible without the correct technologies. However, the increased efficiency provided by transportation management services allows businesses to scale without incurring the expense of hiring several more employees.
