What is a TMS?
A transportation management system can be a key component in supply chain management.
Transportation Management System (TMS) Defined
TMS (Transportation Management System) is a software solution that helps to automate certain shipping functions. It can aid businesses in finding shipping solutions that best match your shipment needs.
Transportation Management System
Controlling freight spending and streamlining the supply chain are always top priorities for businesses of all sizes. Optimizing your shipping and supply chain and driving efficiencies can be achieved in the digital age by utilizing a transportation management system (TMS). In fact, the use of a TMS helps alleviate the time-consuming strains of finding shipping options, helping you save time and money. But what is a TMS? And how can you incorporate one into your shipping strategy?
A TMS centralizes:
- Shipping modes
- Shipping rates
- Tracking shipments
- The lanes offered
Allowing you to easily compare different options. While using a TMS certainly helps reduce shipping costs, it also keeps all things related to shipping organized in one place. This is like having a one-stop shop for everything you need when it comes to shipping.
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6 Benefits of a TMS System
Implementing a Transportation Management System (TMS) offers several benefits for businesses involved in transportation and logistics:
- Improved Efficiency: A TMS automates manual processes, such as load planning, carrier selection, and freight auditing, reducing the need for manual intervention. This leads to faster and more accurate operations, saving time and improving overall efficiency.
- Reduced Freight Cost & Time Savings: Control freight spending, optimize operations, and adapt easier to fluctuations. Businesses have more control than ever over which shipping options work best for them. Easily accessing all your options in one place saves you time trying to find the right solution and allows you to make a more informed decision. With the ability to compare your options side by side, you can choose the most cost-effective carrier or route that works for your budget, leading to cost savings in fuel, labor, and inventory holding.
- Tracking Capabilities: The ability to oversee the status of all your shipments is always vital. And if you have multiple shipments going out with different carriers simultaneously, keeping track of them all can be a hassle. However, a TMS allows you to track all your shipments through one channel, and some platforms offer insights about delayed shipments. This visibility helps proactively identify and resolve any issues, improve customer service, and reduce the risk of delays or disruptions.
- Business Insights: Get a higher-level picture of your supply chain or shipping process and identify opportunities for load optimization, route planning, and valuable insights, such as which carriers are most reliable and affordable. Discover inconsistencies between invoices and rates, uncover trends, and provide intelligence to help you optimize your shipping.
- Analytics and Reporting: A TMS offers robust reporting and analytics capabilities, providing businesses with valuable insights into their transportation operations. Detailed reports on key performance indicators (KPIs), such as carrier performance, freight costs, and transit times, enable data-driven decision-making and continuous improvement.
- Scalability and Flexibility: A well-implemented TMS can accommodate the changing needs of a business as it grows and evolves. It offers scalability and flexibility to adapt to new transportation modes, additional carriers, and changing market dynamics.
Using a TMS puts the power back in your hands. Make more informed decisions and increase supply chain efficiency. A TMS allows you to track and analyze your shipments, so you can easily and quickly identify what’s working and what isn’t. You can adjust your shipping strategy based on real data all located in one place. Talk about a time and money saver!