A TMS helps companies digitally manage their freight operations and gain valuable insights to improve future shipments. This platform creates a one-spot location for activities related to enterprise resource planning. Some other activities organizations can also use TMS to perform include:
Plan and forecast network needs
Manage carriers
Track freights
Optimize shipping routes
Execute and track shipments
Automate workflow processes
Handle payment and settlement
Report on network KPIs
Provides driver support with dispatch and kiosk
Ensure compliance with federal rules and regulations
Deliver proof-of-delivery visibility
Related: What Is Logistics Management? Definition, Types and Tips for Effective Logistics Management
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Benefits of a TMS
Companies using a TMS can gain insights into their planning and procurement processes to find areas for improvement. This results in more efficient transportation planning, leading to higher customer satisfaction and more sales. The following are some potential benefits of using a TMS with your organization:
Reduce costs
Organizations that use a TMS can reduce the costs of their transportation operations by finding ways to reduce expenses. This tool helps reduce the number of charges incurred from layovers or other unnecessary areas. For instance, a TMS may help a company see that some trips send partially full truckloads when they could send a fully loaded truck. A TMS also reduces costs for the end customer since it allows the company to save money and lower their prices for their items.
Related: 11 Ways To Cut Costs for Your Organization
Save time
TMSs also help companies save time by improving shipping efficiency and expediting the process. This digital tool provides a platform to make it easier to find your communication with carriers and send updates when load details change. It also offers an easy way to duplicate shipments going to the same destination with the same type of truck. Companies can apply a TMS to reduce the number of steps involved in their shipment process, resulting in faster delivery times.
Related: Business Efficiency: What It Is and How To Improve It
Improve productivity
Using a TMS can also help improve warehouse efficiency and productivity. Organizations that use this tool can have a record of orders so they know where items are in the warehouse, in transit and when they arrive. This also improves supply chain efficiency since it provides tracking to identify and remove areas of inefficiencies.
Related: 22 Productivity Tools To Improve Workflow
Provide tracking in real-time
Another benefit of using a TMS solution is that it allows companies to see where shipments and drivers are in real-time. By knowing the exact time it takes to travel to one location, a company can see which routes are most efficient. Companies can set alerts on their TMS to let them know when delays occur so they can update their customers.
Related: Real-Time Reporting: Definition, Benefits, Uses and Tips
Allow for scalability
Organizations using a TMS can easily scale their operations to meet and exceed customer demands quickly. This includes more on-time deliveries. As these companies become more productive and improve their shipping process, they can expand their operations. This tool also creates preparedness for future problems that may occur in the business so that they can overcome setbacks quicker.