Why is Transportation Management Important?
Before transportation management systems (TMSs) came into the picture, nearly all logistics processes were done on paper. Shippers spent countless hours calling and emailing internal and external partners just to ship their freight. Transportation management technology changed all of that.
The first TMSs were housed on-premise and did speed up shipping processes. However, since these pieces of technology resided solely within the “four-walls” of the company, they presented many challenges. These included difficulty updating to the latest version and integrating with other platforms. These issues inspired the creation of cloud-based transportation management systems. Cloud-based transportation management systems allow users to connect with internal and external partners and applications much more easily and offer scalability impossible with on-premise software. This modern version of a traditional TMS also offers a quick start-up, low usage costs and greater flexibility.
Many members of the industry often wonder why transportation management is important and why it continues to evolve. The truth is technology is changing every industry and transportation and supply chain are no exception. Many businesses feel that their current operations are working just fine. That doesn’t mean they aren’t missing opportunities for time and money savings, collaboration with other industry members and an increase in customer service quality. Ignoring the significance of transportation management and all it has to offer means missing out on opportunities and the rapid return-on-investment competitors who have adopted a cloud-based TMS are already experiencing. So, what are the reasons transportation management is important?
Benefits of a Transportation Management System (TMS)
Save Time and Do More Without Adding to Labor Costs
The implementation of a TMS keeps companies from wasting a significant amount of time on mundane and repetitive paperwork. Technology speeds up the performance of necessary tasks and allows companies to delegate time to other aspects of the business, allowing them to do more without driving up costs.
Reduce Human Error and Streamline Operations
Time spent comparing carrier rates and booking shipments is significantly reduced through the use of a TMS. Options are displayed on a single screen to make comparison and final decision making faster and easier. Users that integrate their ERP with their TMS eliminate the concern of human error occurring when re-keying orders.
Improve Visibility and Customer Satisfaction with Better Information to Communicate
Transportation management systems provide users with real-time tracking and order information. Companies are equipped with detailed and accurate information to pass onto customers, providing visibility across the supply chain and improving their customer service.
Aggregate Your Shipping Data in One Place to Easily Analyze for Strategic Decision-Making
Shipping data funneled into actionable reports and dashboards allow users to understand every detail of their freight spend. Companies can make strategic decisions based on data provided to further improve their operational efficiencies. They can also be used to evaluate carrier KPIs and total freight spend by item.
Improve Your Company’s Bottom Line
Utilizing a TMS drives down expenses through improving the timeliness and accuracy of operations across the board. Logistics teams can save significantly on total freight spend by always comparing rates to select the best one for every shipment. Companies who implement a cloud-based TMS have increased visibility throughout their supply chain, opportunities for communication and collaboration with carriers and customers, and significant time and money savings.
How Do I Know What Kind of TMS Software is Right for Me?
To determine which kind of transportation management system (TMS) suits your company best it’s important to think about how many shipments you’re making each month and how many locations you have. By answering a few simple questions, Kuebix can provide your company with a personalized recommendation to help answer this question.
