Transportation Management System: Expectation vs Reality

May 28, 2024 by
Transportation Management System: Expectation vs Reality
ABI-VNM - Abivin Vietnam, Phạm Nam Long
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Transportation management systems (TMS) are gaining popularity as businesses seek to improve the efficiency and profitability of their logistics operations. A transportation management system (TMS) is a software platform that assists organizations in managing and optimizing the transportation of goods from point A to point B. The system automates processes such as route planning, carrier selection, and shipment tracking, allowing businesses to better monitor and control transportation costs.

However, there may be a mismatch between what businesses expect from a TMS and what they actually get. In this blog, we will look at common TMS implementation expectations and realities.

Implementation

Expected Result: Easy Implementation

One of the most common expectations for TMS implementation is that it will be simple and painless. Companies anticipate that the TMS will integrate seamlessly with existing systems, requiring little effort and time to set up. This can lead to disappointment if the implementation process takes longer than expected and requires more resources.

Reality: Complex Implementation

TMS implementation is a complex process that necessitates careful planning and execution. TMS systems must be integrated with existing systems such as ERP, warehouse management systems (WMS), and customer relationship management (CRM). This takes a substantial amount of time and resources, including technical expertise and employee training. The integration process can also cause data integrity issues, which must be resolved in order for the TMS to function properly. Abivin provides a cloud-based TMS, easy to implement and also help you could access the system anytime anywhere

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Cloud-based TMS


Cost saving

Expectation: Cost Savings

Another expectation is that TMS implementation will result in cost savings. Companies anticipate that the TMS will save money on transportation by optimizing routes, reducing transit times, and improving delivery schedules.

Reality: Cost Savings are not Automatic

In actuality, cost savings don't happen automatically; they need work and oversight. The TMS must be configured and tailored to the company's unique requirements, and the transportation processes must be reassessed and improved. To make sure the TMS is producing the desired results, this requires ongoing monitoring and adjustments.

With advanced algorithms and real-time data analysis, Abivin's TMS provides companies with the tools and information they need to optimize their transportation operations. This means that companies can reduce transit times, minimize delivery costs, and improve overall supply chain performance.

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Abivin's Advance Algorithm


Visibility

Visibility is a critical aspect of transportation management and is essential for companies to monitor and manage their supply chain effectively. With a TMS like Abivin, companies can achieve real-time visibility into their shipments, allowing them to monitor the status of deliveries, resolve issues, and make informed decisions.

Expectation: Improved Visibility

Companies expect TMS to provide real-time visibility into shipments, allowing them to monitor the status of deliveries and resolve any issues in a timely manner.

Reality: Visibility is not Always Real-Time

The reality is that visibility is not always real-time, and some TMS solutions may not provide the level of detail and accuracy that companies need. For example, the TMS may not be able to provide accurate information on shipment delays due to factors such as weather or road conditions.

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Abivin Track&Trace solution

Compliance

Compliance is a critical aspect of transportation management and companies cannot afford to overlook it. In today's globalized business environment, companies must comply with a complex and ever-changing regulatory landscape. Failure to comply with regulations can result in costly fines, legal repercussions, and damage to the company's reputation.

Expectation: Eased Compliance Burden

Companies expect TMS to ease the compliance burden by automating compliance processes, such as customs documentation and duty calculation.

Reality: Compliance is Complex

The reality is that compliance is a complex issue, and TMS solutions may not always provide the level of automation and support that companies need. Companies must ensure that the TMS is configured to comply with local regulations, including trade and tax laws, and that staff is trained on how to use the system. In Abivin's TMS, much paper works could be reduced and the manager also can manage the status of drivers thought tasks and real-time tracking

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Digital Picking list can replace paper

To sum up, implementing TMS can be a difficult process that needs careful planning and execution. The mismatch between expectations and reality is frequently brought on by a lack of comprehension of the complexity and work involved in implementing a TMS. Companies must carefully assess the needs and requirements of their transportation processes before choosing a TMS solution that can fulfill those needs and produce the desired outcomes.

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