A 2015 Logistics Management survey shows that only 35% of shippers are using transportation management systems as part of their overall supply chain management strategies. Companies that rely on spreadsheets and manual interactions with suppliers are spending a lot of time on functions that can be automated by a transportation management system. With a TMS, companies can be active in pursuing lower costs, faster lanes and productive solutions. 

Why are so many companies avoiding the abundant benefits of a TMS? What benefits does a TMS offer a company?

A TMS is best known for its routing, scheduling, reporting capabilities. Besides more effective monitoring and better management, a TMS provides shippers with…

  • Access to Carriers. With a TMS, shippers gain access to a broad network of carriers. They are able to automate an RFP, which saves time. A TMS secures reliable, low-cost capacity since multiple carriers compete to move the freight.
  • Valuable Data. Properly analyzing data gained from a transportation management system helps shippers develop better supply chain procedures, optimize freight moves, create more effective inventory management and reduce overall costs. The analysis of data can identify pain points that otherwise would have gone unnoticed.
  • Greater Customer Service. By the year 2020, customer experience is predicted to be more important than price, product or brand choice as a differentiator in purchasing decisions. TMS software provides visibility into performance, and enables shippers to have real-time, tangible information that helps find solutions to productivity and performance.
  • Proven ROI. The technology lowers freight spend through gained business intelligence. Shippers can make better decisions, use preferred carriers, improve processes and negotiations, find better routes, and reduce accessorial and excess fees.
  • Support of Omni-Channel. As e-commerce grows in popularity, companies must find a way to manage multiple sales and information channels. A TMS will alert companies of disruptions, track transportation spend, monitor performance metrics, provide real-time visibility on inbound shipments and reduce overall costs by finding new ways to ship more effectively. This keeps inventory moving quickly and helps deliver a superior experience for the customer, despite the complexity of omni-channel commerce.

A TMS helps companies effectively move freight from origin to destination. This supply chain tool delivers the data needed for companies to drive value through visibility. The main reason to throw out manual processes and capitalize on TMS functionality is to reduce transportation spend and develop deeper insight into operational processes.

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