What added value does a Transportation Management System bring my supply chain?

• Improved Visibility
  A good TMS provides natively integrated real-time visibility into the transportation process, allowing you to track shipments and receive status updates in real-time. With better visibility, you can identify potential issues before they become problems, and proactively take action to avoid disruptions in your supply chain.
   
• Increased Efficiency
  A TMS can optimize your transportation operations by automating the planning and execution process. It helps you to identify the most cost-effective routes, carriers and modes of transportation. This will result in cost reductions and reduced transit times.
   
• Enhanced Collaboration
  A TMS provides a centralized platform where shippers, carriers, and other stakeholders can collaborate and share information. This collaboration leads to better coordination and communication between all parties, which ultimately leads to more efficient and effective transportation management.
   
• Improved Customer Service
  You can offer better customer service by providing real-time updates and improving the accuracy of estimated time of arrivals (ETAs). This can help you to increase customer satisfaction, which is critical for maintaining and growing your business.
   
• Reduced Costs
  Transportation spend often tends to be a significant portion of a company’s overall expenses. A TMS can help to reduce costs by streamlining the transportation process and automating certain tasks. Three of the biggest cost reduction drivers are optimized consolidation, freight audit and pre-billing. By consolidating shipments, companies can reduce the number of carriers they use and optimize their routes, which can result in significant cost savings. A TMS can also perform automated freight audits, ensuring that companies are only paying for the services they receive and catching any billing errors. Additionally, a TMS can automate the pre-billing process, which can reduce the amount of time and effort spent on billing and invoicing.

• Better Inventory Management
  With better visibility and control over your transportation operations, a TMS can help you to manage your inventory more effectively. As your transit times are more reliable and predictable it can help you to reduce inventory carrying costs by optimizing delivery times and reducing stockouts.
   

• Avoid breaking EU sustainability regulations
  Acting on sustainability is becoming increasingly important and companies are feeling the pressure trying to comply. A TMS can provide the basis for success in effectively taking the necessary steps to reduce emissions. A good TMS is able to clearly display the current state of affairs and measure progress in the future. Companies with a TMS can also set up carriers and services to make it more transparent which type of transportation and associated services lead to which type of emissions.

Overall, a TMS can help you optimize and sustain your transportation processes, improve customer service, reduce freight spend, increase the ability to manage your transport partners performance and increase the accuracy of your data. By improving your transportation management, you can improve the effectiveness of your supply chain, which is critical for maintaining a competitive advantage in today’s fast-paced logistics environment.