We continue our series on the State of the Transportation Management Systems now with our article on the 4 important processes enabled by the use by shippers of a transportation management system or TMS. In our very first post, we covered the possibility of TMS and the principal reasons why shippers turn to TMS. The Popularity of the usage of transportation management system TMS has been growing steadily in the past couple of years. Its use is to reach a stage where transport professionals consider it crucial for their enterprise. In reality, recent studies have shown that just about 35 percent of shippers are using TMS to manage their operations. And several are still using old versions and haven’t decided to upgrade to the most recent version.
However, the majority of the delivery professionals know that they might need to begin using it if they would like to keep on doing business and have some understanding of TMS. It has grown in sophistication as the delivery business has gone global. The shippers and carriers of today aren’t just expected to get their reach they are required to give inexpensive fast and higher quality service. In A world where access to real-time data is very important for each decision-making, the significance of a Transport Management System for today’s shipping company cannot be overemphasized. A transportation management system helps organize of the data points. The set of data allows the information to be presented by the TMS in an easy to comprehend format that Rittenplanning logistics managers make the best decision possible about transport.
Logistics managers and 3PLs are now using transportation management systems for the Whole transport operation, which involves the following four key processes:
- Planning and decision: A transportation management system offers vital data in real time to allow shipping professionals to plan and make decisions based on a given set of parameters. These include deciding from a choice of carriers on shorter paths, transportation costs, and stops along the way.
- Execution of transport plans: A TMS makes it quicker and easier to execute transportation plans by automating vital functions like carrier speed acceptance, dispatching, and EDI.
- Visibility: A TMS makes it much easier for a logistics manager to have cargo visibility across the way so that everybody involved, including the customer knows exactly where the shipments are in any given moment. Logistics managers have invoicing, coming at point B, customs clearance, and this visibility from point A and booking.
- Measurement the majority of TMS have a logistics key performance index KPI reporting function which makes it effortless to measure performance.
The Largest and obviously the most desirable advantages provided by TMS is that the savings in costs, leading to increased ROI. A study by ARC Advisory Group has found that using transportation management system results in a saving of roughly 6 per cent. The savings have been blamed by Consumers to better routing cost mode selections, and procurement discussions. A TMS makes this possible by obtaining cost information. By providing shippers with the ability to select carriers in the comfort of the office, a TMS can turn the market into a buyer’s market. All that a delivery manager must do is click on and point the mouse button to pick the alternative presented to them.