Importance of TMS in logistics

Transportation Management System (TMS) has become crucial. Often times, people initially think of a TMS as a simple tool in routing freight from origin to destination. Although, this is a core feature, utilizing a TMS during the fulfillment process creates greater efficiency and productivity in the daily operations.
There are many types of TMS solutions, that vary from more traditional on-premise TMS solutions, to network TMS solutions. The right TMS can optimize your core operations and transform the way your business functions.
Here are the Benefits of Transportation Management System

  1. Reduction in Cost: The more you use it, the more you save! The TMS has the ability to log and track all carriers, their fees and the amount of transactions daily to achieve more savings.
  2. Time Savings: Instead of doing manual work or sending disjointed emails, shippers can instantly access the information they need through a single digital platform. The TMS let shippers compare rates side by side and make strategic choices regarding their shipment
  3. Efficiency and productivity: implementing a TMS into your fulfillment center processes allows you to dedicate more time to areas that need it. These systems are built to be customized to suit your needs and are in place to enforce business rules and processes to ensure proper execution.In combination with a Warehouse Management Service (WMS), you get the overall supply chain visibility you need to make business decisions that drive additional cost savings and reduce inefficiencies.Manual processes are eliminated, leaving little room for error.
  4. Improve customer service levels: Providing excellent customer service is crucial for business growth. Consumers like to know where their orders are at all times and a TMS allows you to do so. With the ability to monitor on-time performance, a TMS can show you how frequently a carrier meets, or doesn’t meet, their transit times logged in the system. If your customer is paying a higher rate for expedited service, you can help them save money by holding the carrier responsible in meeting those times. Additionally, you can use the tracking and reporting to identify service failures; enabling you to solve problems before they occur.
  5. Increase Business growth: Using a TMS is a great resource to help manage your supply chain. Companies that use a TMS have a competitive advantage against competition and see many opportunities to grow their business.

Challenges like the driver shortage, capacity crunch, increased final mile delivery expectations and rising freight prices have shippers looking for ways to improve their supply chains. The solution to these problems is to implement a transportation management system (TMS). A robust TMS can speed up logistics operations, reduce waste and improve the company’s bottom line.

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