The right transportation management strategy can enable a company to smoothly run the logistics, and at an optimized speed. The end-to-end management of transportation is complex and expensive, and companies need to deploy the right strategy to achieve business goals.

It can help organizations to easily track shipments, reduce their transportation costs, improve warehouse efficiency while maintaining or even improving customer service.

Most companies are now integrating transportation management software (TMS) for planning, executing, and optimizing the physical movement of goods. It is enabling companies to streamline both their inbound and outbound movement while ensuring the compliance of the shipment and timely delivery of freight and goods.

It helps in streamlining the shipping process and maximizes the efficiency of transportation operations, by land, air, or sea. TMS has become an integral part of today’s modern logistics and supplies chain industry.

Customer behaviour trends largely affect the trends in the supply chain industry, and they have high expectations from suppliers to meet their demands.

They look for fast shipping solutions and real-time tracking, and to meet the changing customer demands in terms of the movement of goods, it has become imperative for companies to deploy TMS. Before you choose a transport management software, here are few important things you should know about TMS.

Benefits Of A TMS

A TMS allows companies to move freight from origin to destination with greater efficiency, reliability, and cost-effectively. TMS has a history of offering a strong ROI.

It facilitates freight savings which one can attribute to load consolidation and lower cost mode selections, and route optimization for mitigating the threat of rising freight costs.

With a TMS, companies can simplify the supply chain process across geographies, modes, and carriers. Since it also enables compliance in the movement of goods, it minimizes penalties and shipment delays.

Types Of Solutions In TMS

The transportation management system includes two types of solutions. Planning and execution help to focus on freight movement through a carrier.

With a TMS, enterprises can select the right mode of shipment and the best carrier. The entire process involves procurement, creating a route guide, planning, conducting electronic communication with carriers, freight audit, and performance management.

The execution capability varies according to the features of the TMS. Some of the common features may include documenting and tracking shipments, and assisting with freight billing and settlement.

The complete process would include routing and optimization to efficiently measure and track performance with the help of reports, analytics, and business intelligence solutions.

Various Use-Cases of A TMS

There are multiple use-cases of a TMS in the logistics operation. It helps gain visibility into the route for transporting goods and considers real-time traffic conditions, equipment availability, loading/unloading requirements, and more. With a TMS, companies can improve inventory turnover.

They use it for forecasting demands based on seasonal trends to organize their replenishment strategy. It helps in organizing end-to-end costs, and define the financial aspect of each logistic route to optimize shipments and improve freight terms.

A TMS can work together with other management systems necessary for managing the warehouse, customer relationship, purchasing and order cycle, and supplier relationship. It usually “sits” between an ERP system and warehouse/distribution module. It enables companies to meet the changing and more challenging customer requirements.

How To Choose the Right TMS?

While choosing the right TMS solution, you need to consider the pertinent features of the software that will enable you to smoothly conduct various transportation operations. The solution should be easily accessible across the team for efficient collaboration. Cloud-based TMS is gaining popularity as it enables the management to conduct business remotely and coordinate better.

To select the right solution, you need to analyze your business requirements and identify the use-cases of the TMS for rightly capturing your goals. You need to ensure that you can customize and configure the TMS features to seamlessly into your existing infrastructure and merge into your workflow.

Moreover, it should be scalable enough so that as your business capabilities increase, you can onboard more employees and increase your working capacity. It should easily adapt to changes, upgrades, or overhauls. Cloud-based TMS solutions deliver capabilities on-demand allowing businesses to adapt to their fluctuating needs, which makes it a popular choice.

You can look for managed solutions to orient, configure, and support the software across its lifecycle. It will enable you to get rid of the overhead tensions, and focus on core competencies.

Why Should You Leverage AI In Your TMS Solution?

Nowadays, most TMS solutions are leveraging AI and ML to generate more value in transport management operations. The modern transportation management systems need to deliver more than recording time and place of shipments.

It needs to support various functionalities such as automation, dynamic routing, and reporting transportation performance in real-time. AI combines smart analytics with embedded intelligence to provide actionable insights and automate work processes.

It will help to enhance productivity, efficiency, and performance, and bring down costs and associated risks.

To Conclude:

These are a few important things you should know about the transportation management system. It can enhance the quality and timeliness of transportation in your supply chain, and help you provide high service quality to your customers.

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