Top 6 benefits of a Transport Management System for shippers
Have you already automated the procedures surrounding the transport and distribution of goods to ensure that your order processing, route planning, delivery and billing runs smoothly and flawlessly? If not, you are missing out on major opportunities! Efficiency in the logistics industry is a direct contributor to profitability. With an adequate Transport Management System (TMS) you’ll be able to have full control of your logistic processes. This isn’t just beneficial for your business, it also helps you to carry out your clients’ wishes. As a trading- or production company you may financially benefit from a Transport Management System. In this blog we’ll tell you all about the top 6 benefits of a Transport Management System.
Benefit 1: Cut costs with a rate-comparison system
When it comes to destinations you’re often able to choose from a plethora of logistic partners. Not only can you discern them based on the location of the transport, but there are also those who specialize in transporting specific goods. Comparing all logistic partners for each individual transport is rather impractical. What if there is software available that does the comparing for you? By considering transporters, but also individual transports. The software compares all possibilities in the blink of an eye, which leaves you the option to simply choose the transporter that offers the best value for money. Insights into the performance of a transporter may also help you negotiate the best price. You either get offered a better price or the carrier has no other choice but to offer more added-value services.
The price you pay for transport is of the utmost importance. The Transport Management System offers an oversight of the expected expenses for transport. Is your transport particularly pricey? The system enables you to check beforehand if everything is in order. Aside from that it offers insight into future expenses so future quotations are no longer a surprise. Having an overview of your future expected costs offer valuable insights. For example, it may be so that a certain carrier offers more value for money in one area, while it may be an entirely different carrier for another area.
Benefit 2: Fewer mistakes with automation
When it comes to manual labour, mistakes are inevitable. Yet you absolutely need to do your best to prevent them. After all, it saves time and money. Most errors are made when last-minute tasks need to be taken care of quickly. Do you not yet have a system in place to handle your logistic processes? Then manual labour may cause unnecessary risks.
A solution to this is to give the carrier access to the Transport Management System. Usually, the so-called supplier portal is part of the TMS. That way carriers are always up to date on what they have to carry and where to. A TMS is easily linked to an Order Entry- , ERP- or a CRM-system. By integrating your systems you’ll reduce manual labour. Fully linking and integrating your systems with the TMS is also advisable when it comes to complicated processes that require a lot of paperwork. A good example is the official documents necessary for sea- and rail freight. A TMS can also pose a great tool offering customs documentation functionalities.
Fewer mistakes lead to a more satisfying experience for your buyers. It also reduces costs as mistakes are prevented.
Benefit 3: Keeping your customers up to date
A customer wants to know what they are dealing with. Because of our online shopping, we have gotten so used to Track & Trace, that we also desire it in a B2B environment. This includes your customers, they have higher demands when it comes to information surrounding a delivery. Therefore they wish to be up to date on when their delivery arrives, but also of deviating delivery times. Following their delivery with a 24/7 Track & Trace option and insight into quotations are also a requirement. With the option of a customer portal built into the system, it offers your customers a real-time look into this data. They can see exactly what has been ordered, where the delivery is, when delivery is expected, and have an overview of applicable invoices.
Benefit 4: Assistance in managing logistics
Data driven decisions are a key element of successful businesses. But first you need to have the data. A Transport Management System secures your data for you and offers analysis opportunities. Not only does it offer insight into what goes well, but also in what can be improved. Correct management information allows you to make the right decision including your logistic processes. By establishing a management dashboard, you keep sight of whatever data is most important to you.
Benefit 5: More control over your dock planning
Many warehouse deal with chaotic fluctuations in workload. Where your employees were enjoying a cup of coffee and some socializing one hour before, they are now rushing to get several trucks unloaded. Or there are plenty of employees present but the warehouse is completely full? There goes your careful planning. As a logistics manager, neither situations are desireable and pleasing. You wish to spread out the work across the entire day so your employees are enabled to do their jobs as efficiently as possible.
Preventing fluctuations in your dock planning and having the right resources and capacity available at the right time is of the utmost importance. How? By having control over the movement of goods and logistics surrounding your warehouse. With a Transport Management System you can enable dockplanning, coordinate incoming and outgoing transports, and even automatically plan recurring appointments. With planning fully in control, waiting times are prevented and costs are saved.
Benefit 6: More customer satisfaction thanks to integrations with other systems
To get the most out of a Transport Management System, it is wise to look into the integration possibilities of your other systems with the Transport Management System. The goal here is to join forces for the most efficient system possible.
One of the most obvious possible integrations is that with an ERP-system. As soon as an ERP-system indicates that an order needs to be shipped, the TMS can start doing its job. By linking with the ERP-system, time is saved and typos are prevented, as (double) manual data entry. Once an order has been delivered, the TMS can in turn communicate with the ERP-system that it’s time to start invoicing. Not only does this automate administrative tasks, but it is also beneficial for your customers’ satisfaction level. After all, they are services more quickly and more flawlessly.
Even if you partner up with several carriers a TMS can be integrated into your system. Goals here is: more effective collaboration within the supply chain. By linking both systems to an EDI (electronic data interchange) the data can be interchanged. The shipper gives the order to pick up a container at a certain carrier, after which the carrier can communicate that the container has ben delivered.
Do you also wish to benefit from a Transport Management System?
To service your customers quickly, efficiently and flawlessly? Please feel free to contact us and we will tell you all about the possibilities for your business.