The Benefit Flow of Using a Transportation Management System [TMS] *Infographic*
Transportation management systems (TMS) are becoming more and more common throughout the supply chain. TMSs used to be reserved only for the largest shippers and cost exorbitant amounts of money, making them inaccessible for shippers with smaller freight spends. With the dawn of Software as a Service (SaaS) technology and cloud-based systems, any size company that ships freight can implement a TMS to improve their logistics operations without breaking the bank.
Take a look at our infographic to learn more about how a TMS can bring improvements from initial customer order to post-delivery.
A TMS will centralize all information so that every stakeholder in the supply chain can easily view and access the same data as their peers. Working off of the same set of information reduces the risk of error and makes processes flow more smoothly.
Minimize Manual Entry
With the addition of an ERP integration, orders flow automatically into the TMS for easy rating and booking. Instead of rekeying orders, logistics professionals have all the order information at their fingertips!
Save Money – Add to Your Bottom Line
One of the basic, and most potentially lucrative, functions of a TMS is the ability to compare multiple rates from different carriers side by side. Instead of navigating to dozens of different carrier websites (or worse of all, not comparing rates), logistics professionals can quickly select the rate and service type for each shipment that saves the most money and delivers the best customer satisfaction.
Optimize Loads and Routes
Optimization tools built into a TMS help logistics professionals build the optimal load and route with the help of algorithms. Parameters can be inputted ahead of time to specify how the load needs to be built, and the technology suggests the optimal consolidated shipment and lane. This helps to cube out every truck, save money on fuel expense, and reduce the number of touches an order undergoes.
Track & Trace Orders – Gain Visibility
Being able to track and trace orders down to the SKU level improves Customer Service teams’ ability to inform customers of changes to their orders and troubleshoot issues as they arise. It also means that teams can proactively make changes and maintain a complete understanding of their supply chain. With all of this data housed in one place, reports and dashboards can also be access directly from the TMS.
Improve Customer Satisfaction
All of the aforementioned benefits contribute to improving customer satisfaction. Orders can be processed more quickly, booked for cheaper rates, and remain visible throughout every node of the supply chain. This helps shippers meet rising expectations around shipping costs and times. Knowing when an order will be late and proactively communicating that with the customer will go a long way to building strong customer relations.
Leverage Actionable Analytics
Even after an order has been delivered to the end customer, a TMS doesn’t stop providing benefits. All shipment data is stored within the TMS and can be viewed in customizable reports and dashboards. Shippers can analyze overall carrier performance, make changes to their standard processes, and proactively leverage the analytics to improve customer satisfaction and lower costs.