Nowadays, most business owners understand that transportation issues regarding their products demand a great deal of attention. As such, automated transportation management systems (TMS) have greatly helped large distributors significantly lower freight expenses, enhance the efficiency of their logistics and transportation departments, and improve their quality of service. For these same reasons, smaller businesses also have much to gain from implementing a TMS, despite having smaller loads.
A TMS is perhaps one of the most important investments a company can make. Contrary to popular belief, many TMSs are not overly expensive to implement because most are web-based. They have convenient APIs that permit a TMS to seamlessly integrate into other systems such as those for enterprise resource planning (ERP) or warehouse management systems (WMS) to gain end-to-end supply chain visibility.
Managing logistics manually in today's fast-paced world is inefficient and can lead to poor planning and an inaccuracy in warehouse inventory. A TMS simplifies data entry thanks to its logistics automation features. Company assets, addresses, and other information can be automatically stored and accessed via integration to an ERP system, reducing the chances of having to pay a higher freight rate, for example, due to inputting incorrect data.
Like many other kinds of software, TMS applications can be developed with role-based access controls so that the right people have the appropriate access. This also enables a collaborative network where all parties (shippers, carriers, and logistics provider) can communicate effectively and easily, allowing businesses to optimize, plan and execute their logistics management with greater efficiency.
With access to reports generated from a TMS, companies gain better insights on their shipping activity and business finances. Gathered data can be analyzed to identify the most cost-effective carrier and supply route. By lowering costs, businesses can pass along these savings to their customers and likewise provide a better quality of service.
While many companies prefer to handle their logistics management in-house with off-the-shelf products, there are many benefits to customizing or even building one's own TMS software. Businesses who have partnered with experienced, certified third-party developers to do so now enjoy the benefits of having a transportation management software that meets their exact industry needs and supply chain requirements.
Chetu does not affect the opinion of this article. Any mention of a specific software, company or individual does not constitute an endorsement from either party unless otherwise specified. This blog should not be construed as legal advice.
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