A transportation management system (TMS) helps businesses manage the transportation of goods. It provides a variety of features that allow businesses to optimize their transportation network, schedule shipments, and track inventory.
A robust transportation management system can benefit your business in many ways, including increased efficiency, improved customer service, and reduced costs.
Increased Efficiency
A transportation management system can help increase the efficiency of a company’s transportation operations by helping a company schedule and track shipments, and map out the most efficient routes for overland transportation. This can assist a company in improving its shipping times.
Additionally, a TMS can help a company better manage its inventory, especially those managing issues with excess inventory. As businesses transport products at a quicker rate, it becomes easier to develop more efficient plans for restocking. This eventually reduces problems connected to extra inventory and subsequently improves logistical planning.
Another benefit to a transportation management system is the reduction of manual paperwork. When data is inputted electronically and made available to all necessary parties simultaneously, operators and managers can make more informed business decisions and catch and correct any errors early – before those errors cause more extensive problems.
Improved Customer Service
Improved customer service is a key benefit of using a TMS. A TMS can help ensure that shipments are delivered on time by automating the transportation planning process. This can help businesses keep their customers happy and maintain a positive reputation.
With a robust transportation management system in place, you can track your shipments in real-time, so you always know where your goods are and when they will arrive. This allows you to respond quickly to any changes or delays, ensuring that your customers receive the best possible service and accurate information.
It also helps employees feel empowered to proactively reach out to customers if they know a shipment will be delayed and gives them the ability to offer all available and appropriate data, including estimated arrival times.
Reduced Costs
Reduced costs are another key benefit of using a TMS. By optimizing transportation planning and execution, a TMS can help businesses save time and money on their transportation operations, such as reducing the mileage traveled by trucks and reducing fuel costs and driver overtime.
You can also save money on shipping costs without compromising speed or quality by consolidating shipments and using the most efficient transportation options, as well as comparing multiple carrier rates in order to make more cost-efficient booking decisions.
When reviewing their team’s shipping costs, transportation managers are often taken aback by the number of charges and other fees they incur due to layovers, detentions, and similar events. With a TMS, these additional expenses can be measured and evaluated throughout the fiscal year and budgeted for so they don’t make too much of an impact on the bottom line.
The Best Transportation Management System For You
A transportation management system is an invaluable tool for any business that relies on shipping goods and materials. By increasing efficiency, improving customer service, and reducing costs, a TMS can help your business to run more smoothly and profitably.
To ascertain which TMS is the best fit for the needs of your company, it’s imperative to evaluate the scope of your transportation department’s operations – for example, how many shipments you’re making each month, how many locations you have, and the amount of inventory you are shipping on an annual basis.
The next step is to speak with industry experts armed with the data about your transportation needs and the desire to use new technology to modernize your transportation operations.
If you would like to learn more about how a transportation management system integrated with the CloudLogix supply chain software platform can transform and streamline your transportation logistics management, contact us today to schedule a demo!
