7 Reasons To Consider a Transportation Management System
A Transportation Management System (TMS) is a specialized service that helps businesses plan, execute and optimize all transportation activity throughout the global supply chain, which may include air, rail, land, and sea transport. This system manages incoming and outgoing freights ensuring that all documentation is available and the shipment is in proper condition.
According to the Oracle transportation management definition, a TMS can blend in with a supply chain management (SCM) system. Therefore, adding a TMS will benefit the whole operation if your business has a dedicated SCM system that integrates seamlessly with a TMS.
A transport management system has several benefits. Here are some of the reasons to consider implementing a TMS.
1. Improved Cash Flow
A transportation management system helps a business to reduce shipping costs. Since the system has data on all the shipping operations, it will analyze the financial aspects of each route. With the data, a TMS can generate suggestions for cutting costs.
More advanced TMS options may also recommend Refrigerated Trucking Companies stop shipping on a particular route. If a route creates more expenses than profit brought in, the system will give suggestions of an alternative shipping route that will cut these costs.
It will also highlight other areas to reduce expenses, such as driver overtime or fuel consumption.
2. Better Customer Service
Some customers desire a last-minute change to their order yet expect fast delivery. A transportation management solution tracks orders and shipment routes more efficiently than humans. Since the system will allocate the freight to the best shipping route, a change in an order will have the system reexamine the planned shipment and make adjustments as needed.
This system, due to automation, reduces human error in route optimization. While humans can make a reassignment error, the system uses oversight technology to make the best reassignment route. Not only will the customers benefit, but also the business will benefit from enhanced customer satisfaction.
3. Improved Warehouse Management
A TMS can blend in with other management systems. When you use this system, you spend less time managing freight. You can use this time to oversee other warehouse operations.
A TMS can track freight as it comes in. If your TMS links to an Enterprise Resource Planning (ERP) system, it will automatically document freight data in real-time. Incorporating a transport management system can avoid mistakes that may arise when human workers enter warehouse data into the system.
4. Track Deliveries in Real-time
A TMS allows the logistics center to track shipments at all times. This system will notify the organization if the load is late or the driver makes an unnecessary stop. With this, you can keep tabs on all drivers and their behavior while goods are in transit.
Also, after a TMS takes up freight management, it will draw up a timeline based on the routes. Therefore, an organization can use the data to establish a definite delivery schedule, factoring in all stops. This will also help the organization assure the freight’s safety to their customers.
5. Supply Chain Visibility
A transport management system can integrate with a supply chain management system. With these, you can control your whole business digitally. You can also view every action that is happening in the system. With Ams fulfillment you can now increase your supply chain visibility while getting access to all your operations from one center.
With this access to your operations from one center, you can promptly recognize and resolve a problem. This helps your business always to run smoothly. In addition, with supply chain visibility, you will maintain client satisfaction.
6. Aligned Dock Scheduling
A TMS will optimize the delivery schedules with other docking times to reduce the wait time for ships to dock. This will reduce the wait to create space for the new freight. With this system, you will save time.
Your business will also develop a timely delivery culture in the industry. With a predictable delivery schedule, you can guarantee accurate order fulfillment thanks to a reduction in shipping errors.
Synchronizing delivery schedules with docking time will help streamline port operations.
7. Less Paperwork
Using the TMS will save time spent on paperwork. Since the TMS helps to automate documentation, it will save you money.
Mistakes that come with the manual filling of paperwork will be eliminated. You can also cut administrative costs due to synchronized account management.
Transport management systems play a pivotal role in a supply chain process. Since the management system integrates with all other functions in your business, it simplifies administration.
A TMS has many desirable advantages. Implementing it in your business will enable your business to optimize shipping routes, reduce overhead costs, and enhance customer satisfaction. Your business will grow thanks to repeat business and referrals from loyal customers. Since a TMS can be made to fit your business, you will enjoy complete automation of your processes.