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February 24, 2021 | 12:02

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Transportation software serves several major purposes and is too often overlooked by business leaders. Their advantages are numerous for the entire logistics chain: Optimization of supplies to better source each supplier according to the needs of your clients. The concrete response to their needs is the key to your success. Better management of deliveries and the vehicle fleet. The goal is to make deliveries to each customer easier and faster. The transport TMS is directly integrated with the order management. This will lead to better routing of shipments. Control of transport costs thanks to a rationalization of incoming and outgoing flows. Improved traceability of each commodity. The operational and administrative monitoring provided by the TMS makes it possible to anticipate a difficulty during a stage of the supply chain and to activate coherent processes for resolution as soon as possible. The aim is to reduce the rate of deterioration, loss, customer returns, and disputes. Automatic editing of all invoicing documents to ensure their inclusion in your accounting systems. All operations can be followed in a large, synthetic dashboard in order to maintain full control over operations. An effective strategic reporting tool to have better visibility on the functioning of your activity, and to define its key success factors. 

Read also: How to Develop Logistics Software for Successful Transportation Management

A TMS, therefore, makes it possible to improve the price of the decision in order to build effective growth policies in the medium and long term. The more complex the quantity of goods to manage and the logistics, the more essential the TMS becomes. However, many supply chain managers felt that it was unwise to equip themselves with low volumes of goods for their logistics transport. 

How to choose the best TMS according to your needs?

There are as many company profiles as there are types of logistics TMS. In a mature market invested by many software vendors, there is no doubt that there is software that meets your expectations. But before you make your choice, don’t forget to consider a number of fundamental questions to run your project in the best possible way.

First of all, the concrete response of the TMS according to your strategic issues (international shipments, transport of toxic and perishable materials, very short delivery times, e-commerce, multiple currency management, etc.) is undoubtedly the first point of attention to observe. Some software is rather a generalist, others have stronger business expertise. The right TMS should suit the size of your business. Some solutions are dedicated to VSEs and SMEs, others too large companies. Adopting a very sophisticated solution in a small business will not yield satisfactory results. 

Another point of prime importance: the compatibility between your new TMS (transport management system) and your current information systems (management software, WMS, old TMS, etc.) in order to create a fluid and efficient ecosystem. If you are already using a TMS, it should be easy to migrate data between the two software. The loss of data or its misuse can have negative consequences on the efficiency of your supply chain.

Pricing conditions for use, updating, and upgrading must be carefully considered, especially for fast-growing companies. 

However, some companies still express reluctance to use a TMS. The first argument put forward is often the price of the software. Fortunately, the emergence of new TMS in SaaS mode further encourages companies to take the plunge. Now, you don’t need to invest to buy software, just pay a monthly subscription based on your usage. The idea is to sell a service rather than software installed on your computers. These new solutions are based on the Cloud and improve the security of your data. You only pay for the services you consume, and you are free to subscribe to a feature freely whenever you want. This allows you to form a complete TMS connected to the entire carrier network according to your operational needs.

Who Uses a TMS?

TMS is principally used by enterprises or companies that require shipping, moving, or receiving freights on regular basis including eCommerce businesses, products manufacturers, products distributors, Retailers businesses, and companies offering logistics services i.e. third party or forth-party logistics companies (3PL and 4PL ) and logistics service providers i.e. LPs. Businesses in all aspects and transactions will always need logistics and transportation. The frontline users are mainly businesses that spend annually $200 million or more yearly on freight. In addition, the accessibility to  Cloud-Based TMS solutions has made the technology more affordable for small and medium businesses thus letting them take full benefits of incorporating such an effective technology as a Transport management system in the supply chain of an enterprise.

Benefits

There are many advantages to owning a delivery tool. First of all in terms of optimizing picking and filling trucks. The software reduces general operating costs related to the back office, the number of empty returns and has full tracking and traceability of the carrier to know the location of your goods. Finally, delivery times are reduced thanks to the choice of the best route and the planning of tours. Customers are more satisfied with the services. Here are outlined some major benefits :

  • The ease in the supply chain processes thus increasing the effectiveness of transport mode, geographies, and the carries
  • Considerable decrease in the costs for the business and end client
  • TMS plays an important time-saving role – fewer manual steps thus fewer delays and faster delivery
  • TMS involves automation of the processes thus increasing the speed of delivery and the accurate of billing and documentation
  • TMS’ effectiveness improve the visibility of the company and the security of the delivered goods especially in transit
  • TMS provides a permanent tracking ability both locally and globally on the same platform
  • Improves the import and export compliances thus minimizing penalties and delays
  • Amelioration in customer service and client satisfaction with real-time updates and fewer delays
  • Read also: How much does it cost to develop a custom CRM software

    The Future of TMS and Keys to a Successful TMS Implementation

    With the increase in client expectations, not only for two or three days delivery but same-day delivery, with the real-time tracking provided by services all through the shipping process. The changing world trade regulations are forcing supply chains to reorganize to keep up with the pace thus creating adaptive measures leading to more investment in the transportation management system.  The transportation management system will become more strengthened and feature-rich thus providing faster responses to clients and more detailed info. The key secret to the development of TMS may involve Machine learning thus providing more precise predictions and recommendations.

    Enterprises can choose to integrate their transportation and world trade management systems with emerging technologies to improve visibility and offer amazing customer service. Down below can be listed some innovations in the current technologies, that is:

    Read also: Enterprise Data Warehouse

    Digital Assistants: This can help in the customer support services such as Chabot thus offering effective and immediate support to the clients. This bot comforts the clients by responding to all requests on shipment information leading to an increase in the level of satisfaction of the client. 

    IoT fleet monitoring: The internet of things devices or IoT makes live or real-time fleet monitoring and surveillance of commonplaces, routes, involving in-transit visibility of driving conditions and assets. Enterprises may decrease the fuel consumption and maintenance costs. This will have a direct result to decrease delays and improve driving safety. 

    Blockchain: The blockchain technology is now used to build complex integrations between shippers, carriers, and clients. This technology can effectively track and tracing transparency i.e. traceability along the supply chain, It assures perfect security and ensure precise information on the delivery.

    Read also: Blockchain Technology for Logistics and Supply Chain

    Adaptive intelligence and machine learning: The application of machine learning technology to the transport management system makes it possible to directly predict transit time precisely, identify at-risk shipments ( goods that may get expired on the way or maybe time conservations of the products ), plan capacity, and much more. Machine Learning and artificial intelligence will permit TMS technologies to provide précised and informed recommendations i.e. for instance alternative routes. 

    Read also: How AI is Transforming The Transportation Industry

    Cold chain management: this is another blockchain solution that is available in transport management systems is cold chain management. This is used mainly when different temperatures must be maintained at various checkpoints along the supply chain.

    Tags

    #Logistics#TMS
    Views: 213

    Written by:

    Alina Plotnitskaya

    Chief Innovation Officer (CINO)/Product management, help to create startups from the idea to final release, addicted to inspiring ideas and great products.

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