You probably already know if you work in retail, distribution, manufacturing, e-commerce, or third-party logistics. A Transportation Management System/Software (TMS) is a logistics platform that enables customers to monitor and optimize their transportation fleets’ everyday operations. It belongs to the Supply Chain Management subgroup (SCM).
TMS is a system that can help you enhance your operations, grow your business, and give better customer service. There are various advantages to using a TMS to help organizations transport freight from origin to destination accurately and efficiently. The following are some of the advantages of a TMS:
Lower Freight Expense
One of the most significant advantages of a transport management system is the reduction of freight costs. This system can save money by utilizing analytics and optimization. A transportation management system generates cost-cutting recommendations and provides relevant statistics using data.
Real-time Delivery Tracking
The ability to see where drivers and shipments are in real-time is provided by a TMS. This provides information on how long a route takes, which can be used to construct a more effective route schedule. This also provides information on the most efficient drivers and routes.
Because of the constant flow of entering and departing merchandise, a well-organized warehouse is critical to the logistics process. When a TMS and a WMS are used together, it is possible to track orders in the warehouse, while in transit, and when they arrive. As a result, users will be able to evaluate processes and confirm their efficacy.
Improved Cash Flow
A competent transportation management software program may significantly reduce shipping costs for a company. Each logistics route’s financial characteristics will be analyzed by the correct system. It will make user-friendly recommendations for lowering costs in key areas like fuel use and driver overtime.
Using a TMS to automate all accounts will reduce time and money spent on cumbersome paperwork. The amount of money spent on administration is greatly decreased. Mistakes like improper billing or invoice problems are reduced, and overall efficiency improves.
Supply Chain Visibility
A bird’s eye perspective of the whole supply chain system is provided by new generation Transport Management Systems that integrate across the supply chain. It’s a significant bonus to have complete operational insight and access to real-time data from all systems. It allows management to respond swiftly to any possibilities or concerns that may occur. This keeps you in the good graces of your clients without jeopardizing your performance.
A TMS increases customer service levels by being able to track on-time performance. The ability to track where shipments are and how far they are from their eventual destination is also important. The TMS provides an online gateway through which customers may track their shipments and notify their customers.