Several decades ago, the supply chain was run by people putting in shipment requests, planning routes, and tracking shipments manually. There was no way to plan for which route would be better at a certain time than another. There wasn’t technology that could predict what day of the week would be busier than the others. For many, time and money were lost more frequently when shipments were delayed or late.
In today’s world of freight, there’s no more guessing. Logistics companies have access to a Transportation Management System (TMS), which gives instant insights into transportation planning and execution, analytics, freight management, and tracking shipments. A TMS takes all of the information given to it and quickly finds solutions. In today’s fast-paced and ever-changing environment, shippers need to have flexibility and efficiency, which is why a TMS is perfect for your supply chain and shipping process. But are there other reasons why a TMS is essential to your business?
Understanding What a TMS Does
Transportation Management Systems are designed to save you time and money. It centralizes and consolidates shipping options, allowing you to shorten the time it takes to select the best carrier for your shipment needs. The system provides lanes, routes, and rates offered by a variety of carriers based on your freight specifications, such as:
– The dimensions and weight of the freight
– The pickup and drop-off locations
– The distance traveled
– The total number of units being shipped
– Any special handling that may be required
TMS software keeps everyone in the supply chain informed of the status of a shipment, ensuring collaboration that keeps the global economy running. Instead of businesses running things separately from others, TMS software has helped centralize the freight industry. Many industries worldwide use TMS, including:
– automotive and industrial manufacturers
– industrial, medical, and various other wholesale distributors
– general merchandise retailers
– food and beverage companies
How Does a Business Benefit From a TMS?
When you use a TMS, you’re gaining the ability to streamline your day-to-day functions and work towards managing growth and costs. You’ll find a wide variety of benefits, such as business insights, capacity and flexibility, and time and money.
1. Business Insights
To make any logical decision, you need data. However, data is often spread across various business areas, making it challenging to find and analyze efficiently. A TMS doesn’t just serve as a platform for shipping option searches; it uncovers inefficiencies and provides visibility into business insights. It allows for:
– Multiple shipments to be tracked at one time
– Various invoices to be viewed
– Helps with the creation of reports for logistics analysis
By utilizing a TMS, you’ll be on track for greater customer satisfaction. On-time delivery has grown in the last decade, and consumers expect their shipment to arrive at the time it was promised. TMS software allows visibility of any potential delays, identifying them and addressing them quickly. The customer will be alerted of any issues, letting them know when to expect their shipment without confusion or disappointment.
2. Capacity and Flexibility
The shuffle of finding which route is better than another or which carrier is cheaper can leave shippers lost and confused. Rather than going back and forth between different carriers to compare rates and routes, a TMS brings it to one place.
It’s as simple as putting in your shipment details and comparing carriers to find one that matches your preferences. You’ll have better control, visibility, and flexibility over your supply chain. It shows you carriers looking to fill capacity in empty trucks, ensuring that you won’t have to worry about there being space for your shipment.
3. Time and Money
Planning a shipment on your own can equate to lost money and time. Going back and forth between carriers takes up time that would be better used to focus on your supply chain. You’re also losing money, as the deal you find may not be the best one.
A TMS helps lower shipping costs. It automatically compares carriers to find the most cost-effective option in just seconds. It also cuts down on time spent doing administrative tasks. The software allows for auditing, contract, payment, and order scheduling, giving you all the information you need quickly. Everything you need is at your fingertips.
How Do I Get Started?
Most TMS software is found through Third-Party Logistics (3PL) companies, such as FreightCenter. We utilize a powerful TMS, providing access to hundreds of carriers, insights, and cost savings. Incorporating a TMS into your shipping process will streamline, optimize, and control freight costs.
Our agents are ready to help you leverage our TMS to find the best rates, routes, and carriers for your shipping needs. Let us help you simplify and manage your shipping. Get an instant online quote today or speak with one of our expert agents at (800) 716-7608.
