You've probably already heard about why it's so important for your company to implement transportation management software because of all the benefits a TMS provides. Thanks to the growth that the TMS industry has experienced, there are now more affordable options for small and medium-sized businesses along with that of large enterprises.
However, it may seem complicated to install a TMS and that it will take time to understand its interface and manage it. But the opposite is true: it saves time and money in your logistics operations.
If you want to know in detail the benefits of a TMS, take a look at the following tips:
Unify all data in one place
Think of a TMS as a control tower that also unifies all types of data on a single platform, from the manufacturer to the last mile. In this way, it can be viewed from a single platform and information can always be kept up to date.
Thanks to this unification, managers can make changes easily and with all the information up to date. From route adjustments to implementing new processes, this is one of the key benefits of a TMS for your company.
Increase warehouse efficiency
Being up to date on the lifecycle of orders throughout the supply chain gives a clear view of future needs and anticipates when inventory needs to be replenished.
Having full control over the loads coming in and out of the warehouse helps to better calculate the amount of stock needed to meet demand without delays and also to avoid stock-outs.
Let's not forget either that all the time saved on more automated tasks can be invested in this important aspect of the entire logistics process.
Saving transport costs
It is known that one of the most costly activities in the entire logistics process is transportation due to the fact of handling fuel, distances traveled, personnel, among others. It is estimated that it accounts for more than 50% of the total logistics cost of all companies.
However, one of the benefits of a TMS is that it assists in the planning of all loads so that each trip is worthwhile and no more money is wasted than could be saved. In addition, if we optimize our routes for those loads, we will be able to reduce further costs.
It should also be noted that one of the benefits of a TMS is that they usually come with a rate management system to choose the best time to make payments and keep the logistics budget under control.
Improve transportation accuracy
Human errors in manual data entry are very common and cause all kinds of failures and delays in the supply chain. If we want to avoid mismatched information due to miscommunication and mismatch, TMS can automate data collection.
Facilitates contract negotiation between carriers.
A TMS helps you easily and quickly compare availability, vehicle and rates between carriers. And, once the selected drivers are hired, the system will collect all their contract data without leaving any details behind.
This access to carrier and contract comparison assists you in being as efficient as possible by choosing the best drivers based on your needs and constraints while reducing the costs involved.
Real-time tracking
Another benefit of a TMS is that, as mentioned above, it is a control tower, allowing you to track all routes in real time throughout the supply chain.
It is worth noting that a TMS is capable of mapping more complicated routes involving the splitting of loads onto other modes of transport along with the linking of these. So such systems usually have full support for intermodal and multimodal transport, adapting to any situation and phase of the supply chain.
It is easy to use and saves time
It is common to see that some manufacturers and distributors are not convinced to integrate a TMS into their business because of the belief that it will take even more time to learn how to handle a seemingly complicated system.
But, far from the reality, it is a tool that greatly helps in locating, managing, reviewing and auditing all the data collected. Therefore, time-consuming calls, emails and physical paper searches can be reduced and avoided to monitor and manage them in one place.
Conclusion
Given all the benefits of a TMS observed, there is no doubt that we are in an increasingly digitized and demanding industry. So it's up to companies, from manufacturers to distributors to join the digital transformation to take logistics to the next level.