3 ways a TMS can improve the Supply Chain
29 July 2021
Having a reliable software solution nowadays for your transportation management is a must; it is a necessity. Even if many users underestimate the importance of a TMS for their business. A Transportation Management System is an irreplaceable tool that, under the pressure of the pandemic crisis, has been able to reduce the transportation spending in the long run for many companies.
In the industrial supply chain, automation is vital for success. This is because real-time visibility in all kinds of operations and synchronization in fast streamlines of transactions is imperative for a business. The only way to maintain this synchronization is by using one of these systems.
The term TMS is getting everyday more and more common in the supply chain industry, as companies turn to technology to stay competitive. Technology has revolutionized everything in the industry. Transportation management systems are the next step.
What is a TMS?
A Transportation Management System is used to plan cargo movements, ratings and shopping across all modes, the selection of the perfect route and carrier, and manage the bills and payments. Companies of all sizes are researching these systems, in order to learn more about how technology can save them things like: time and money, communication with vendors and streamline logistics operations.
In other words, a TMS is a digital system that companies use to manage their cargo operations instead of contacting any external, or even internal, partners. A transportation management system often sits between a company’s ERP system and a WMS. It connects these two to increase the supply chain’s efficiency.
Most of transportation management systems have booking, rating and tracking functionalities. But also: advanced reporting and dashboards, cargo pay and audit, and other features that can be added as needed. Transportation management systems come in all shapes and sizes.
Here are some of the benefits companies gain by implementing a TMS:
- Saving money and saving time
- Business growing is the bottom-line
- To repurpose labor to value-added projects
- To improve the customer’s level of satisfaction
- Strategic changes
- Simplifying the collaboration with supply chain stakeholders
Improvement in the supply chain
Saving time & money
A TMS can drastically reduce manual labor, and, therefore, the probability of human error. Investing in a system like this for a transportation department can be a long process, but a company can use a transportation management system for 3PL. This will ensure high integration, more visibility and supervision in all kind of processes.
With a consistent and functional transport management system, a company can increase their operational efficiency and also use all the available resources to optimize every shipment they do. A TMS lets you easily find cargo carriers, lanes and required equipment, so a company can find and book capacity in advance, documenting every shipment and having complete visibility into all the the transportation processes: such as costs.
Having an organized and multi-functional space for cargo shipments, cargo documentation, cargo inventory, and cargo warehouse will increase the quality of performance of a business. The TMS will not only help a business to keep track of everything, but also gives access to hidden insights.
In the long run, a TMS allows a company to analyze spending, operational gaps, inventory, and many more operational streamlines. Using this information can help to make data-driven decisions to improve the cash flow and overall productivity.
Better communication with vendors
TMS is a great way to fill the gaps in supplier communication through:
- Better order fulfillments.
- Better control over the last steps of the delivery process.
- Optimizing order fulfillment and messaging.
- Providing transparent and accessible tracking.
- Consolidates shipments in the most effective way.
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