How Can the Transport Management System Help Logistics business?
Are you still stuck with the traditional logistics operations where you have to manage everything through phone calls and spreadsheets? If yes, then let us warn you that you are way behind the trend. Most probably all your competitors have switched to a smart and reliable Transportation Management System (TMS) that brings all the tasks and details on one dashboard. Apart from making things convenient for you, the system is also cheaper, easier to implement & use, and above all it accomplishes your tasks faster. If we look at the statistics and surveys of the past 2 years, then you can witness significant growth in the investment done in transportation technology and across the logistics and shipping technology spectrum. Now in 2020, TMS is the foundation of the modern supply and logistics business.
If you are still not sure about what TMS is, then here is a brief insight into it.
Transportation Management System is an exclusively designed software to help companies plan, implement, and optimize shipment from one destination to another. It makes the whole freight movement reliable, efficient, and cost-effective and includes all modes of transportation. TMS intends to attain 3 primary objectives:
- Identify shippers and compare the cost of each
- Book the most economical shipments
- Track the process meticulously.
Whether freight transported is inbound or outbound, international or domestic, the asset is owned by the company or belongs to a service provider, the freight is parcel sized or bulk commodity, the software covers it all in one place. Moreover, it also allows real-time visibility into the supply chain and enhances efficiency, thereby increasing customer satisfaction. Honestly, there is no other supply chain application that offers such a wide range of services and an impressive set of advantages. However, the key reason behind the popularity of TMS is reduced cost. The system attains all this based on analytics, enforcement, optimization, and more that no other app can ever deliver.
Today, in this blog we are going to discuss some of the amazing benefits of TMS for your logistics business. Have a read and we are sure that by the end of it, you will be compelled to implement one in your business. Here we go:
Reduced Freight Cost
With TMS, you can reduce freight expenses for companies on various accounts. It enables you to pick the shop with the best rates through a single screen, thereby you can save a huge amount of money by selecting the least or the most economical option every time. As it optimizes routes and load-balancing, logistics professionals like you can lower the cost considerably. This also implies that you have got easier access to having beneficial competition, carriers, and can avail of better logistics solutions. Moreover, analytics and accurate information paves way for the most efficient use of resources. What’s more? Implementing automating labor-intensive processes increases workflow efficiency as well.
Gone are the days when you have to spend hours scrolling through one spreadsheet to another to find one piece of information. TMS has brought all the data and statistics on a single platform, making it easier for you to compare figures and save time. It allows you to manage your entire business and its operations while sitting in front of your desktop without any hassle. From tracking to interacting to booking orders, you can handle a plethora of tasks with just a few clicks. Additionally, it also reduces paperwork which is time-consuming and lengthy. With access to the right information at the right time, you don’t have to browse through different websites but get your work done within no time. Moreover, with transportation software development, your customers can save time and have smooth experience through self-help portals where they can find all the updates about their product and order.
As all the information concerning your logistics business passes through TMS, it is transformed into actionable reports and stored in the system that can be used for future references. The company can keep a track of freight costs for every time down to the SKU level and plan strategic changes. TMS empowered logistic management applications enable business owners to track the fleet in real-time and keep a tab on the location of every driver through GPS enabled-map, watching the route taken by them, delivery location, and all the important details. With all the information accessible through one system and visibility into the fleet, you can be certain of efficient management and improved productivity. With the constant watch on the drivers’ route, you can help them optimize the delivery process and create effective schedules. It is easier to locate drivers who are available and assign them tasks accordingly, wasting no time. This is also useful in assessing the performance of drivers and giving necessary feedback. It is almost like tracking your Uber driver as TMS works on the same principles. Additionally, you can also see carrier KPIs and vendor scorecards to stay on top of your industry and ensure higher profits.
Minimum Manual Work
If you remember the old days where you have to enter every data manually, you must also remember how time-consuming and complicated the whole process was. However, with the introduction of TMS solutions that can be easily integrated with ERP systems or ordering systems, manual work has completely vanished. Now, you can enter information related to pallet weights, PRO numbers, and destinations automatically while eliminating human errors. The system can be synchronized with other management systems, including warehouse management and resource planning systems to reduce mistakes and incorrect entries that are common in manual work. There is no more need for making hand-written notes or stickies or spreadsheets as you can get all the orders and information under one roof that is more reliable and easier to share with stakeholders. Moreover, it also improves data accuracy making it a preferred and authentic solution for logistics companies around the world.
Improved Warehouse Efficiency
Yes, TMS adds to your warehouse efficiency as well. How? Because with improved transportation management, you invest less time on freight and focus on other projects and areas of your business, including warehouse duties. You can integrate TMS into the warehouse system to organize deliveries and load them in the fastest time possible. The combination also gives you a supply chain visibility, thereby helping you make informed decisions, saving costs, and decreasing inefficiencies. Needless to say that improved performance and productivity enhance your customer relationships. A well-organized warehouse facilitates inventory management to keep track of goods, find their location in warehouse or transit, etc. The customized software streamlines the workflow by eliminating paper processes.
Enhanced Customer Satisfaction
Yes, the e-commerce industry is evolving every day and growing by leaps and bounds but this rising popularity also demands improved customer satisfaction and even more complicated supply chains. Companies cannot compromise with their orders and deliveries and must make the services faster, cheaper with complete visibility. That is where TMS comes into the picture by combining all three factors and enhancing customer service. Furthermore, a company can seek accurate and right information about shipment regarding tracking and delivery which can be used to provide customers with smooth experience. It tracks deliveries and updates the progress automatically and using predictive analysis, TMS creates precise reports to enable on-time deliveries. It not only links order and warehouse management but you can also consolidate orders to get the best price for shipping. If you plan to offer on-demand and personalized service to your clients, then TMS is the perfect solution for this.
New Delivery Capabilities
Integrate robust TMS to acquire delivery capabilities and optimize the way you ship. Let’s take an example to understand this. You can set up pool point distribution or inbound programs between multiple locations within the organization to increase overall efficiency and save costs. It also allows you to create a master bill easily. You can use individual logins at various locations that can be managed by one person from a single location. With the Transportation Management System, you can plan and execute your capabilities so that with any new program popping up in your mind, you can implement it through the TMS system.
There is no denying that the future of TMS seems bright and expansive. You surely can expect the technology evolving, becoming more robust and feature-rich. Soo, it will adopt IoT, machine learning, and artificial intelligence to provide you with better services and reliable solutions. There will be customer-oriented changes as well like chatbots systems and even blockchain can play a critical role to improve accountability of the supply chain. There is a myriad of reasons to implement TMS to enhance your transportation operations. The points mentioned above were just a brief insight, there is a lot more in the box.
So, if you are considering adopting the system, then connect with us now and we will come up with the best plan to make the transition smoother and faster. We assure you to deliver customized software solutions for your logistics business that resonates with your company objectives.