Nine Tangible Benefits of a Transportation Management System

Change can be challenging—but failure to change can be damaging.  Ultra-efficient, innovative supply chains are an integral part of the competitive strategies that differentiate many successful companies in the marketplace. Cloud based TMS technology—arguably the most important logistics management tool available to companies today—can make a major contribution to identify and exploit total cost-cutting opportunities providing both hard and soft dollar savings for companies of all sizes.

The bottom line is that managing your organizations transportation is a key factor for a more efficient and cohesive supply chain. Many companies still use manual methods to manage freight, relying on their internal expertise to execute their supply chain. With spreadsheets, fax, email and phones, transportation departments are prone to duplicated efforts, human error, loss and most importantly, lack of visibility.  Over the past 35 years, I have worked with a variety of organizations to help in developing their long term transportations strategies and the overwhelming theme consists of the following three areas:

  • Maintaining high levels of customer service
  • Lowering costs
  • Improving efficiencies and productivity in operations

The key to improving these areas is truly that a company that implements a transportation management system frees up any shipper who utilizes one to get out of the manual process transaction environment to one that provides an impact on efficiency, accuracy and control they need to focus on the critical task of running their business.

The ability to plan and execute inbound and outbound shipments across all modes (truckload, LTL, private fleet, parcel, ocean, air, and rail) using a single solution is now possible. Additionally data collection, analytical, and communications features of the modern-day TMS provides versatility to generate reports for a wide range of audiences—including senior executives and customer service departments who require specific types of information.

So why me? A company that pursues implementation and utilization of a web-based TMS will benefit in many ways……While this list is not exhaustive the benefits of pursuing utilization of a TMS are far reaching.

  • Typical freight cost reduction is 10% – 15% or more
  • TMS Cloud based systems typically don’t require working (some are free dependent on the use of aggregated freight price offerings)
  • System “pays for itself” via ROI and quick payback
  • Web-based TMS makes install and utilization almost idiot proof
  • Significantly improves utilization of right mode, right carrier
  • Can be adapted to all modes of service (LTL, TL, Parcel, Ocean etc.)
  • Improved inbound visibility to DC
  • Provides carrier management analysis and audit data on carriers
  • Provides easy feed for freight invoice audit and payment.

TMS technology allows shippers to bring all elements of their shipping process into a single, visible platform and users need only an internet connection to run their entire distribution operation. TMS saves time, improves accuracy, increases customer service levels, and provides real time tracking and instant data to better manage your supply chain. . This technology is affordable and, most importantly, it allows distribution managers to see all aspects of operations and make immediate corrections as capacity needs and market trends change.

At best, it is a tool that empowers you……in an infinite number of ways……

Motus can help…..feel free to schedule a discussion with one of our transportation consultants to review Motuship today!