Sometimes technology can be frustrating, but with the right product, it doesn’t have to be. An effective Transportation Management System (TMS) can relieve frustration out of your day if you’re a shipper, carrier, or 3PL.
A TMS combines the latest technology in an easy formula to make a one-stop-shop. It can offer the most value to a shipper and provide the unlimited strategic potential for all parties along the supply chain.
3PLs have recognized opportunities where they can create positive change within their business by introducing a TMS that provide a large range of functions. With greater visibility, shippers are given more detailed information for their viewing when they are organizing a shipment through their chosen 3PL. 3PLs also will see increased efficiency, streamlined business decisions, and satisfied customers.
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Each system has its own features that differentiate it from others. Knowing what features work best for you will vary as well. Here is a list of just some of the features that an effective transportation management system can offer to your business:
Carrier Contact Management
- Allows the ability to view and compare contracts and costs with ease through the use of digitalized contacts
- Real-time tracking of terms and agreements
- Contract alerts when it’s time for renewal
Reporting and Analytics
- Offers scrubbed invoices that allow for thought-out business decisions on things like freight spend
- Optimized historical shipment data for greater referencing
- Displays distribution patterns
- Review of industry trends
- Insights into demand/order forecasts
Risk Management
- Automates the auditing process
- Generates reports as seen above to minimize potential risks
- Allows the ability to build contingency plans ahead of time
- Can be set with automatic alerts
Visibility
- Ability to track and trace shipments from pickup to delivery
- Status update notifications
- Auto pick up
- Integration with a carrier using EDI
- Display of costs and additional charges allowing an easy opportunity to compare
- Estimations on the cost of delivery
Business Monitoring
- Review performance metrics
- Review key performance indicators (KPIs)
- On-time performance
- Lane analysis
- Volume trends
- Cost per mile
- Cost per Ton
- Financial reporting
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