10 Reasons Every Shipper Should Get a Transportation Management System (TMS)
Transportation management systems (TMS) are becoming more widely adopted throughout the industry as these systems become cheaper (or free like Kuebix Free Shipper) and easier to use and implement. But some companies are still on the fence about whether to manage their logistics operations the old-fashioned way with phone calls and spreadsheets or to leverage technology to help streamline the process.
According to Bart De Muynck, Gartner’s research vice president, transportation technology, “Last year was a great year for TMS. In fact, in 2018 we saw investments go up across the entire supply chain technology spectrum.”¹
Companies are implementing TMSs at record numbers to achieve many different benefits. Here are 10 ways getting a TMS can help your business:
Everything in one place
By using a TMS, companies can manage their entire transportation operations all from a single place. This means they can rate, book, track and interact with their orders no matter whether they’re full truckload, LTL, parcel, air, intermodal or ocean. It also means that they don’t need to bounce between different carrier websites to rate shop.
Lower freight costs
Transportation management systems almost always help to lower overall freight costs for companies. By being able to rate shop within a single screen, logistics professionals can choose the least expensive option at the service type they need every time. It also means that companies have easier access to more carriers, creating beneficial competition and providing more options.
Reduce manual entry
With a TMS, especially one that is integrated with an ERP or ordering system, manual entry is greatly reduced. Information like PRO numbers, pallet weights, and destinations can be automatically populated to reduce human error. And instead of making notes on stickies or disjointed spreadsheets, all the order and route information is in one place, meaning reliable information can be transferred between stakeholders.
Optimize routing and load consolidation
With many TMS systems, you can build more efficient loads and routes with the help of an optimizer. Optimization tools allow the user to specify different parameters for the load and then suggest or even build the optimal load and route for easy tendering. Users can even view the route on a map to have a visual of where the order is planned so that they can make changes as necessary.
Get meaningful analytics
Since all of a company’s logistics information will pass through the TMS, that data can be transformed into actionable reports and dashboards. With a TMS companies can see freight cost per item right down to the SKU level to make strategic changes that impact their bottom line. They can also see things like carrier KPIs, real-time tracking data and vendor scorecards. These reports and dashboards help logistics professionals stay on top of key metrics affecting their company’s profits.
Gain visibility
With real-time tracking and analytics, you can provide your customers with the visibility to their orders that they expect. You can even add features like Dock Scheduler, RFID and ELD integrations, and Gate Check to make it easy to tell exactly where each truck is on the route.
Make paperwork easier
Transportation management systems make the little paperwork that is still necessary way easier. BOLs, PODs and other paperwork can be printed directly out of the system to make processing easy, efficient, and most importantly correct every time. This not only puts time back into the day, but it also speeds up pickup/drop-off times when drivers have accurate information with them.
Scalability
With a TMS, a company is free to grow or change their business without having to worry about how they will handle their transportation operations. When new facilities or more products are added to the business, the TMS will scale right along-side it. TMSs with modular features offer companies extra customizability. For example, if the company begins to sell products online, they can add an e-commerce integration to improve shipping options for their customers.
Meet rising customer expectations
Speaking of e-commerce, the growth in popularity of online shopping is changing customer expectations and making shipping more difficult for supply chains. Companies need to get orders to their destinations faster, cheaper, and with complete visibility. With a TMS, all three of these things are made possible and companies can provide exceptional customer service while meeting rising customer expectations.
Integrate external processes
Another benefit many companies take advantage of once they implement a TMS is to integrate it with their other systems. As mentioned above, some choose to integrate with their e-commerce platforms or their ERP and ordering systems. These and other integrations help to smooth processes across different teams and departments to help keep the flow of information clean and consistent, not to mention speed up the entire operation and improve overall visibility.
All-in-all, there are plenty of reasons a company should consider implementing a TMS to manage its transportation operations. These span from cost to time savings and improve data accuracy and visibility. As put by Logistics Management in their 2019 Transportation Management Systems (TMS) Market Update, “As the true workhorses of the supply chain management software cluster, transportation management systems (TMS) have become the “must have” for companies that—working under the pressures of e-commerce and omni-channel—need to move beyond clipboards, spreadsheets, and phone calls to manage their increasingly sophisticated transportation networks.”
