5 Examples of an Efficient Transportation Management System27 May 2015, by Blog, Logistics Outsourcing, Transportation Technology in
With the rising cost of transportation, companies are desperately vying to look for an efficient systems and processes that make their teams more productive. Technology can help greatly in this and more and more companies are looking at a TMS (Transportation Management System) for optimization and cost reductions.
While the TMS has gained much popularity, it is still only implemented by about 25-35% of large companies. However, it is not for lack of its benefits; rather, the high costs associated with its implementation. That’s where a third part logistic company can help. These established companies now offer the benefits as a part of their service offering.
Let’s take a look at how this system can benefit you:
1. Cost Effective Transportation
With the implementation of the TMS, you have a control over the activities of your team when selecting carriers based on parameters management sets up. Progress can be tracked in real time, helping you to foresee any potential problems that may arise. Your company takes on a more proactive role, eliminating problems and avoiding any additional costs.
2. Proper Management of Inventory
This feature enables the company to plan better as visibility can help your manufacturing team to know exactly when materials are arriving and improves order management. This can also help to alleviate dock congestions so carriers are loaded or unloaded faster.
3. Management of Multiple Carriers
The TMS, once implemented, allows you to simultaneously manage multiple carriers in a single portal. It provides choices based on rates or transit times all on one screen instead of contacting multiple carriers for quotes. This in turn assists you in selecting the optimal transit route that is both cost-efficient and time-saving.
4. Improved Communications
Since most TMS systems communicate electronically with carriers and vendors, you will experience more accurate shipping orders and billing. This means you can manage the exceptions rather than every transaction.
5. Customized Reporting
The TMS has another significant advantage of drafting reports that can be changed as per requirements. It enables your shipping and customer service teams to track shipments real time. For a flexible and simple way to manage tariff rates, the TMS is an ideal solution. Furthermore, it also generates pre audit and post audit reports that makes certain that you are being billed accurately for every shipment. The TMS also allows you to stay up-to-date with any payable, receivables and increase in fuel price.
If you want more information on how outsourcing logistics may help your business, grab your free copy of “Return on Logistics – Turning Your Supply Chain Logistics into a Competitive Advantage and Bottom Line Profits” at www.returnonlogistics.com