Importance of Transportation Management System

4 years ago

Today’s consumers want everything fast. Whatever they want should be in the stock, and they must receive it now. For any multi-channel business, the overhead shipping cost exceeds even essential costs, such as direct and indirect payroll or utilities.

More and more people are looking for same day delivery. It may account for up to 50% increase in the logistic costs as a percentage of revenue. Companies now look for an opportunity to keep the increasing shipping costs in check without compromising the overall service quality. The need for a TMS solution has become important.

There are different types of traffic management system solutions that vary from traditional TMS solutions. The right software can optimize your core operations and transform the way your business functions.

Here’s a look at how your business can benefit from TMS:

Improved cash flow

A good TMS can help a business in significantly reducing the shipping costs. The right system will analyse the financial aspects of each logistic route and generate user-oriented suggestions for reducing expenses in specific areas such as fuel consumption or driver overtime.

Integrated planning and execution

The new generation transport management systems integrate seamlessly with the existing systems essential for the management of the transportation needs of a company. These consist of:

  • Purchasing and order management systems
  • Warehouse management
  • Customer relationship management
  • Supplier relationship management

The integration will allow the company to execute orders via a cost-effective carrier. It offers advantages of better route planning and load optimization to the company. In other words, the planning and execution of orders will be better and quicker.

Reduced paperwork

Automation of the accounts using TMS will save time as well as money spent on bulky paperwork. The administration expenses are reduced up to a great extent. Also, errors or incorrect billing or invoice errors can be minimized. The automated traffic management system also boosts overall efficiency.

Supply chain visibility

New generation TMS which integrates across the supply chain, provides a bird’s eye view of the entire supply chain system. Having full operational visibility and access to real-time data from all systems is a great benefit. It enables managers to grab opportunities and solve any issue as it arises quickly. It also helps in keeping you in the customer’s good books without compromising on the performance.

Optimized routing through pool distributions

With order cycles and shipment sizes reduced, routing is all the more critical. Right TMS equips users to implement pool distribution as a cheaper and faster method of delivery, offering greater visibility and control. Users choose the optimum pool point to determine which shipments should be picked up or delivered. Complex orders are broken down and routed separately, which saves both time and money.

Improved customer experience

Customers expect lightning-fast delivery. It can be challenging for businesses to adapt their operations to meet the expectations of consumers. This is where TMS comes into the picture. TMS will bridge the gap between management and WMS.

If you are looking for traffic management software companies, connect with Planet PCI, and explore how their software can benefit your business.