management Archives

How to Buy a Transportation Management System (TMS)

November 1, 2019/in Blog, Community Load Match, free TMS, TMS /by Sammi Guillen

In today’s market, shipping is one of the biggest expenses for any shipper, growing at a rate of over 5% per year, depending on the lane. There are many variables that go into freight costs, including mode, service level and carrier. Manually trying to lower freight spend can be challenging, not to mention extremely time-consuming. Leveraging technology gives logistics teams the boost they need to become more efficient. By implementing a transportation management system (TMS), companies can keep freight costs as low as possible while still meeting and exceeding their customers’ expectations.

How to Choose the Right TMS

A broad range of TMSs exist in the marketplace. These range from the old-fashioned on-premise systems favored over the last two decades to more recent platforms that live on the cloud and connect users for heightened levels of collaboration.

Some TMSs incorporate features like automatic invoice audit while others can streamline route optimization and yard management. Many incorporate advanced analytics that can help teams make better strategic decisions about their freight. Others provide seamless integrations to external systems like e-commerce platforms and ERP systems.

With all these features and options, how does a company go about buying a TMS system?

It’s important to determine what your company’s needs are before starting the process to find the right TMS.

Understand your company’s goals for deploying a TMS – is the goal to cut shipping costs, improve customer service, become a preferred shipper, consolidate loads, etc.?

Without a thorough understanding of your company’s goals, you could find yourself locked into a piece of technology that won’t scale as your company grows, or locked into paying for features you won’t use. No company is exactly the same, so make sure to choose a TMS that can be configured and scaled to your company’s needs over time.

Think about how your company could benefit from increased collaboration with other players in the industry. When comparing different transportation management system options, find out if the TMS can connect you with an ecosystem of potential collaboration partners. Programs like built-in truckload spot networks can provide you more capacity at better rates.

A TMS should offer the following:

· Automatic rating, booking and tracking of shipments, managing carriers and communicating with shippers and customers in real-time
· A network of carriers incorporating all modes with the ability to consolidate and optimize shipments
· A wide variety of reports and dashboards to monitor cost, shipping status and service levels
· Management of the carrier bid process from initial set up to tendering of shipments
· Extensive analytics to manage performance in real-time
· A quick implementation time and return-on-investment (ROI)
· Integration with enterprise resource planning platforms (ERPs) and 3^rd party applications
· The ability to track and trace any shipment in real-time, anywhere in the supply chain
· The ability to easily add functionality as needed such as order and route optimization, dock scheduling, yard management and container tracking
· Access to a connected community of shippers, carriers, freight marketplaces, brokers, and suppliers

Here are top 10 questions to ask when evaluating a Transportation Management System (TMS)

Knowing the right questions to ask when beginning a search for the right TMS can be a challenge. That’s why we’ve put together a list of 10 questions it is essential to ask when evaluating a transportation management system. This list will help you gain an understanding of key capabilities and help you start the conversation to find the right TMS for your business.

Can I manage all modes of transportation with this TMS?
Does this TMS give preferential treatment to any carriers or brokers?
Is this TMS cloud-based or a monolithic, in-house model?
Does this TMS have a history of creating outstanding ROI for its users?
How do current customers rank this TMS on review sites? (Gartner Peer Insights, Capterra, G2)
What will the implementation process look like and what is the expected turn-around time?
Will this TMS work for teams across my company? (Logistics, sales, warehouse locations, customer support, etc.)
Will this TMS save me time with a user friendly UI and simple processes?
As my business’ need change, will this TMS be able to adapt and grow alongside us?
Are there benefits for being a member of this TMS’ community such as a spot market?

Some TMS providers like Kuebix offer a base version or free trial to help users try the system and see how intuitive it is risk free. OnKue by Kuebix is our entry-level TMS starting at $69/month for one user.

How to Choose the Right TMS for Your Company

September 10, 2019/in Blog, Technology, TMS /by Sammi Guillen

Choosing the right transportation management system for your company can seem like a daunting task, but it doesn’t have to be difficult. Whether you’re a first-time TMS buyer or a long-time user looking for an upgrade, all you need to do is arm yourself with the right questions to ask before starting your TMS search.

Answering These Questions Will Help You Find the Right TMS for Your Company

Step One: Understand Your Business

The best place to start is to understand how your company operates and could most efficiently leverage a transportation management system. Having a complete understanding of how your company runs its logistics operations will give you a solid foundation to work from. Before doing research on specific TMS systems available, make sure you know how your logistics operations run.

☑ How many modes of transportation does my company ship with?
☑ How many shipments does my company make per month?
☑ Do we operate out of multiple locations?
☑ Are there multiple people at my company involved in the shipping process?
☑ Do we use an ERP system to streamline orders?
☑ Is routing and shipment consolidation a challenge right now?
☑ How many invoices do we audit each month?

Click here to discover which solution is right for your business: https://www.kuebix.com/productrec/

Step Two: Understand Your Goals

Understanding why you need a transportation management system will ensure that you implement a TMS that is right for your business. Ask yourself these questions to prepare yourself with a list of “must-haves” before you start researching the industry.

☑ What type of ROI do I need to see from a TMS? What’s most important:
- • Time savings
- • Bottom-line savings
- • Error mitigation savings
☑ Does the system need to be highly user-friendly for non-technical users?
☑ Will this technology need to be able to grow and adapt as our business needs change?
☑ How much do we want to spend on implementation? How much on subscription costs?
☑ How quickly do we need to be up and running with this new technology?
☑ Will we need to integrate to any internal systems?
☑ Do we want to attain full visibility to all of our shipments?
☑ Are we looking for a way to find additional spot volume when our regularly negotiated rates don’t cover a load?

Step Three: Understand the Market

Now that you have a solid understanding of your operational functionality laid, you’ll quickly be able to eliminate unsuitable types of transportation management systems. For example, some systems brand themselves as complete TMS solutions, but are in reality, only rate aggregators. If you are looking for a place to conduct all of your logistics operations, you’ll know right away that a simple solution like a rate aggregator won’t work for your company. Alternatively, you may be able to eliminate other TMS solutions that require you to purchase all available features, even ones you won’t use. This will help to narrow down the field quickly.

In your day to day life you probably rely on word-of-mouth and review sites to make important purchases. Buying a TMS shouldn’t be any different. Make sure to check out reputable review sites and research from 3^rd party consultancies. These will give you unbiased accounts of the top TMS options available on the market.

Check out these resources to discover some of the leading TMS vendors:

Step Four: Understand a Specific Transportation Management System

Once you’ve reviewed some of the leading research and review sites to discover which TMS solutions have the best reputations for success, you’re ready to dive into researching specific TMSs. Below is a list of questions you should answer when evaluating a specific transportation management system. These questions will help you choose the right TMS for your business.

Download this list as a PDF to have with you during your evaluation process.

☑ How do current customers rank this TMS on review sites? (Gartner Peer Insights, Capterra, G2)
☑ What will the implementation process look like and what is the expected turn-around time?
☑ Will this TMS work for teams across my company? (Logistics, sales, customer support, etc.)
☑ Are there benefits for being a member of this TMS’ community such as a spot market?
☑ Will this TMS save me time with a user friendly UI and simple processes?
☑ Does this TMS have a history of creating outstanding ROI for its users?
☑ Does this TMS give preferential treatment to any carriers or brokers?
☑ Will this TMS be able to adapt and grow alongside my business?
☑ Can I manage all modes of transportation with this TMS?
☑ Is this TMS cloud-based or a monolithic, in-house model

By following these four steps you will be in the best position to choose the TMS that is right for your business. Click here to contact Kuebix and we would be happy to work with you directly to help you understand your company’s specific needs. After all, the decision to implement a transportation management system can have positive ramifications throughout your entire company and we want to make sure you get the most benefits from your final choice.

Is it Time To Upgrade to A Cloud-Based Transportation Management System (TMS)?

June 4, 2019/in Blog /by Sammi Guillen

Many companies are still using the transportation management system (TMS) they installed 15 or even 20 years ago! Technology has changed and improved significantly over that time. So if you’re still using an outdated TMS to manage your logistics operation, it’s time to upgrade to a modern, cloud-based system.

Why Should I Replace My Old TMS?

The old mantra “if it ain’t broke, don’t fix it” doesn’t work when it comes to technology. Just because a system is functioning doesn’t mean that there aren’t more and better features to improve your shipping operations. A horse and cart are likely faster than walking up the road, but that doesn’t mean a car isn’t the better option to get to your destination efficiently. The same is true when it comes to technology, without exploring all the options, you may be missing out on valuable features.

Legacy TMS systems often don’t provide the transparency and visibility you need to monitor shipments, optimize routes, lower costs and improve efficiencies. What sufficed for customers in the past probably doesn’t cut it with your current customers. Customers have become accustomed to Amazon-like delivery options and visibility to their orders. It’s up to you to meet these heightened customer expectations with technology.

With legacy transportation management systems, there’s no way to tell if a delivery is going to be late so you can warn your customers. You don’t have the ability to collaborate in real time with your carriers and onboarding new carriers is a hassle. Your old TMS is simply not keeping up with consumers’ changing expectations and the increasing demands of the modern supply chain. A modern, cloud-based TMS can help.

How Can I Improve My Transportation Operations with Technology?

Upgrading an older system is rarely an option. To compete in the modern supply chain where visibility and flexibility are key, you need to implement a cloud-based TMS. A cloud-based TMS offers faster start-up, lower usage costs, greater flexibility and rapid return-on-investment (ROI). Lower maintenance and support costs are a big plus, too. With a cloud-based TMS, any size business is given a fair chance at competing with larger companies because of low start-up costs and easier upkeep.

Modern transportation management systems can do a whole lot more than they used to.

Scalability is something that most legacy, on-premise TMS solutions do not offer because of their rigid infrastructure. With scalability available in newer TMSs, you are able to add new features and functionality to your system without starting from scratch. Your TMS should be flexible to grow as your business grows. Start with just rating, booking, scheduling and tracking, then add modular features like freight bill pay and audit, ERP integrations, order consolidation, route optimization, and collaboration portals as needed to help you customize the technology to best fit your needs.

Complete supply chain visibility is another feature which only new, cloud-based TMSs can offer. From the loading dock to the final mile, a TMS should track and trace orders down to the SKU level, giving visibility to what is on each truck, how many items there are and where the truck is. A TMS should help you answer questions like whether the truck is delayed and if there are items missing from the order.

Most legacy TMSs do not integrate well with other systems. Today’s cloud-based transportation management systems have the ability to easily connect and share with customers, suppliers and carriers, on any device, wherever the stakeholder is. New systems integrate purchase orders directly from any ERP system to facilitate the rapid creation of shipments, avoiding the need to re-enter the order, which can lead to errors and increased admin time. Retailers with their own e-commerce engine should be able to connect directly to the TMS by using open APIs, adding shipment tracking and the ability to rate, book and schedule deliveries.

Your TMS Should Connect You To a Vast Network

If your TMS is not cloud-based, will not integrate with other systems and cannot provide end-to-end visibility, along with flexibility and scalability to easily add additional features, then it is time for a change. Not only that, your modern TMS should be connecting you with a vast network of carriers, suppliers, freight marketplaces, brokers, and 3PLs to streamline your operations. Being able to manage all of your shipping functions within a single system is essential. With a cloud-based transportation management system like Kuebix TMS, all of this is possible.

Become a Kuebix Free Shipper to see how a modern TMS can improve your transportation operations today!

Kuebix TMS - Cargo Theft Claims Management

Cargo Thieves’ New Strategy Hitting Shippers Hard

May 29, 2018/in Blog /by Sammi Guillen

Cargo theft continues to be a pain-point for shippers in every industry as metrics from Q1 of 2018 roll in. Though technically the overall total of cargo related thefts has decreased 23% year-over-year in North America (CargoNet), it is presumed that many more cargo thefts are going unreported by shippers. All cargo theft numbers are voluntarily reported, meaning operations and finance teams who are already scrambling to ascertain their losses may be neglecting to report the theft to the proper authorities. Potentially more worryingly, shippers may not be realizing the extent of their missing products because of inadequate claims management.

Thieves targeting trucks in transit are using a new strategy to carry out their crimes. As opposed to stealing entire loads or many pallets of product, thieves are being more selective in what they are taking and only lifting a small amount of product at a time. Besides the obvious benefit of increased speed to avoid detection, thieves may also be leaving shippers unaware that there was a theft at all. Pallets go missing all the time for perfectly legitimate reasons that can be tracked down, but shippers without a system to track their historical claims may not be aware to what extent they have been targeted by thieves.

Food and Beverage remains the commodity with the highest losses, closely followed by Household Items and Electronics. In the first quarter of 2017, the average value of a reported cargo theft was $164,185. In the first quarter of 2018, the average value of reported goods stolen rested at $90,883. On first glance, this seems like a success story for law enforcement, but it could also paint the picture that pre-meditated theft sizes are actually dropping. Without ascertaining the accurate number of cargo thefts, it will be impossible to determine whether the number of individual events is rising correspondingly.

According to SensiGuard, 92% of large-scale incidents occur in unsecured parking areas. Other locations reported include warehouses and secured parking lots. Often, determining the exact location of the incident, if it is even noticed by the driver, is difficult. Drivers often travel hundreds of miles before unloading, and if they do not do a thorough walk-around of their vehicle at each stop, determining the exact location of the theft becomes more and more unlikely. The best way to catch a theft early is for drivers to remain vigilant about checking their trailer’s seal or lock.

3 Steps to Prevent Cargo Theft

Check it – Drivers should thoroughly check their trailers’ seals and locks after leaving their truck even for a short period
Report it – Notify the proper authorities if cargo has been stolen to encourage appropriate action be taken on thieves
Track it – Make sure to track all historical claims to determine the scope and pattern of incidents, whether benign or malicious

Many shippers lack a process to track and manage their claims with carriers when items don’t arrive at their destinations as planned. This causes a lot of confusion and lost revenue if managed incorrectly, especially if those items have actually been stolen and their value can’t be recouped. By leveraging a Claims Management system like Kuebix TMS’s, shippers can tie claim information directly to the shipment to make tracking and research easy. By maintaining historical claim details no claim goes overlooked and patterns and totals can be discovered, making a real impact to a company’s bottom line.

10 Reasons to Choose a Cloud-Based TMS

May 18, 2018/in Blog, Cloud /by Sammi Guillen

A decade ago, if you wanted a TMS, you had to buy the software and install it within your organization. Today that has changed as more TMSs are moving to the cloud. Transportation management systems (TMS) based in the cloud are being adopted at faster rates than ever before. Industry analyst firm Gartner sees a 15% growth in TMS usage within small- to mid-sized businesses with some vendors reporting more than 20% growth.

So why are cloud-based TMSs growing in popularity?

We can think of 10 good reasons:

Lower Barriers to Entry – Upfront expenditures related to hardware and software are eliminated with a cloud-based TMS allowing businesses of any-size to gain access to the technology. No longer do companies have to fork out hundreds of thousands of dollars on installed software. Instead, with a cloud-based TMS, you pay subscription or usage fees.
Enhancements Made Easy – The cloud-based TMS software provider is responsible for upgrades and enhancements to its solution, which includes maintaining the application and ensuring its availability and reliability. Most application upgrades can be easily deployed automatically, eliminating the need for internal IT staff involvement.
Connectivity – Cloud-based computing enables the TMS to connect to a global group of supply chain trading partners. As more and more carriers, shippers and suppliers connect to this network of trading partners, the ability to collaborate and conduct business with more and more companies brings value to the participants. Under a cloud model, the TMS can become a central marketplace where you connect to a variety of supply chain stakeholders.
Flexibility as You Grow – Cloud-based TMS systems offer lots of flexibility, starting with basic features that can be easily upgraded with additional functionality as your business needs change. Start with the ability to rate, book and track shipments, then add other features as needed – from predictive analytics to freight bill audit/payment and more.
Level the Playing Field – Deploying a cloud-based TMS levels the playing field as businesses of any size have access to a larger variety of rates and carriers, allowing your business a greater chance to get better rates.
Software Always Up & Running – Cloud-based TMS vendors deploy their systems across multiple data centers to ensure 24/7/365 operations. So, no matter if there is a widespread power outage or weather-related event, you will have access to the TMS and your data to ensure you can always get your products out the door.
Fastest Route to Implementation – Cloud-based TMS systems are easy to deploy and easy to use with typical start-up within minutes or a few hours. Some systems offer online how-to videos to help new users begin.
Faster ROI – Cloud-based TMS users get a faster return on investment (ROI) because of the low upfront investment and quicker start-up. You’ll be up and running quicker, making smarter decisions on rates and carriers.
Smarter Shipping Decisions – Smarter decisions can be made by your transportation operations team by leveraging actionable reports and dashboards within a TMS housed on the cloud. Every transaction is captured and can be analyzed for improvements in service levels, freight spend, KPIs and more.
Lower Freight Spend – Using a cloud-based TMS will lower your freight spend, reports say between 10 – 20% on average, because you have more choices of modes and access to more carriers and lanes.

A cloud-based transportation management system like Kuebix TMS offers a wide variety of benefits for shippers.

The Recipe for an Unbeatable Inbound Freight Management Strategy

April 3, 2018/in Inbound, News, Press, Supply Chain, Supply Chain 20/20, TMS /by Sammi Guillen

Managing inbound freight operations is an ongoing challenge for businesses with large numbers of suppliers. Companies are impacted by the inefficiencies, low levels of visibility and lack of standardization associated with the management of their inbound freight. These problems are exacerbated when companies lack comprehensive strategies for obtaining the lowest possible shipping and unloading costs or a plan to improve the behavior of their suppliers. A complete strategy for inbound freight management needs to encompass the following three aspects; visibility, collaboration and accountability.

Visibility – Although companies control their own destinies on the outbound side of the equation, that level of control dwindles when it comes to inbound freight. In the end, the receiving company does not have full planning and visibility for shipment arrivals and dock reservations. To optimize their inbound, stakeholders can benefit from better visibility of information (e.g., knowing what carrier is being used, exact timing of deliveries, how much manpower is in the DC to load/unload shipments, etc.), real-time data sharing and the knowledge that everyone is working toward a common goal.

Collaboration – By using a comprehensive inbound freight plan based on a collaborative ecosystem of shippers, suppliers and carriers, companies can effectively establish a dynamic rating and unloading allowance program. As companies work in partnership with their suppliers to determine the most cost-effective method to handle each shipment – customer pick-up (CPU) or vendor controlled (VDS), the goal should be to reduce overall shipping costs. By giving suppliers choices, they’ll be able to pick the most effective service and billing procedure. Convert inbound shipments from VDS to CPU shipments only when it’s feasible, and then establish preferred rates with a select group of carriers to handle those inbound shipments at the lowest possible cost and best service type. Use a standard routing guide to establish a set of mandatory carriers that will be used for all VDS and CPU shipments. This will enable LTL pricing improvements, superior service levels and maximize opportunities for LTL consolidation.

Accountability – While companies can’t always control what their suppliers do or the efficiency of suppliers’ systems, they can implement Vendor Inbound Compliance Standards (VICS) to help improve supplier behavior. A comprehensive set of compliance procedures will establish rules and processes that must be followed by suppliers when making deliveries. These accountability levels should also extend to the company’s own supply chain/logistics department and procurement group, both of which play a role in ensuring that products get quickly from their origin to the distribution center (DC). The goal? Improve supplier behavior so that their inefficiencies are not wasting time and money at the DC. It’s also important that a company’s inbound strategy includes leveraging detailed analytics to measure the results of the program and take action where necessary to improve service with suppliers and carriers.

By following this general recipe, companies can work with specialists in inbound freight to develop an unbeatable inbound freight management strategy. But knowing what to do and being able to do it effectively are two entirely different hurdles companies need to jump. It’s for that reason Kuebix has developed SupplierMAX, a program where companies can leverage Kuebix’s technology and logistics experts to manage all or a portion of their inbound freight program. SupplierMAX improves supplier behavior and increases the efficiency of warehouses and distribution centers by incorporating a series of comprehensive strategies to improve inbound operations. To learn more about this program, click HERE to read the SupplierMAX press release in full.

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