What is a Transportation Management System (TMS)?
In the quest for maximum efficiency in logistics, companies have come up with many solutions that streamline their operations. One of the most comprehensive systems that many carriers, shippers, and third-party logistics (3PLs) are using is a transportation management system. Sometimes referred to as a transportation management solution or transportation management software, this is a consolidated platform that takes care of almost every aspect of the shipping process, making a TMS a revolutionary technology in the industry.
A TMS is typically a cloud-based software that automates and streamlines many processes, such as scheduling, tracking, and reporting. Thanks to this efficiency, companies can save more resources, time, and money compared to those who still rely on traditional methods.
In the post, we’ll cover the key features and benefits of using a transportation management system (TMS) and highlight why it has come an indispensable tool for modern shippers.
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Key Features of Most Transportation Management Systems
It goes without saying that no two TMS platforms are the same. Before you choose one, make sure that it has the functionalities that your company needs. Here are the most important features of the software that could really change the way your company works.
- Freight Management and Optimization: Use to manage your freight and make routes more cost-effective.
- Carrier Selection and Rate Management: With a TMS, you can easily choose the best carriers for your goods and have better control over purchasing freight services.
- Shipment Tracking and Visibility: Overseeing your shipment’s location is effortless with a TMS, especially when they’re in transit.
- Reporting and Analytics: TMS platforms help you see your business at a glance thanks to their powerful reporting and analytics features.
- Integration With Other Supply Chain Systems: You can easily integrate your TMS software into an existing warehouse management system (WMS) or enterprise resource planning platform (ERP) to achieve synergy in all your programs.
Benefits of Using a TMS
Here are just some of the advantages you’ll enjoy when using a TMS system.
- Cost Savings: By automating many operations and optimizing routes, TMS programs help you save on expenses. In a survey by ARC Advisory Group, more than one-third of the companies surveyed showed that a TMS program helped decrease freight costs by up to 12%.
- Improved Visibility and Control: A TMS helps you keep track of shipment, expenditures, inventory, and other aspects of your operations, allowing you to make quick decisions anytime an issue needs to be resolved.
- Enhanced Customer Service: The improved operations help you avoid delayed shipments. In case delays do happen, the TMS software helps you communicate with customers, so they’re constantly updated. The end result is more satisfied customers.
- Better Collaboration with Suppliers and Carriers: The software integration and communication features help you work better with other companies in your network.
- Increased Efficiency and Productivity: Since a TMS digitizes and automates many aspects of your operations, your company is more productive and workflows are more streamlined.
TMS: Fueling Your Strategic Shipping Success
A TMS is an all-in-one platform that handles almost every aspect of transportation and shipping, making it an essential tool for shippers, carriers, and 3PL companies. Since these platforms can automate many processes, optimize routes, and more, businesses can increase productivity and save on expenses.
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