4 Valuable Benefits of a Transportation Management System (TMS)

February 27, 2018

A Transportation Management System (TMS) aids enterprises to move products from one destination to another in a cost-effective, efficient, and reliable manner. It involves solutions for running products and services in all modes with intermodal arrangements. There are several benefits of a TMS for enterprises that regularly go way beyond just the cost. If you are looking at your goods and transport section as more than just a price, then you are intellectually in the exact direction on how to positively aid your enterprise to leverage a TMS for the supreme ROI. Let’s explore the 4 Valuable Benefits of a Transportation Management System for enterprises below.

 

Benefit 1: Lower cost by 30 - 40%

 

 

The leading reason enterprises implement a TMS is to reduce cost. This is done by Load optimization and Route Optimization. With the same amount of goods, a TMS can help businesses use less vehicle, human resource. Those vehicles will travel on an optimized route plan, which decreases fuel consumption. A traditional TMS with no route optimization capability can help enterprises reduce 10 - 20% cost. But with route optimization, cost can be driven down even more. Abivin vRoute is a TMS that can help enterprises save 30 - 40% logistics costs using its proprietary algorithm. With Abivin vRoute advanced algorithm, businesses can automatically generate optimal routes that satisfy more than 20 parameters including load capacities of the vehicles, multiple time windows, cross-docking, truck and bike delivery.

 

Benefit 2: Improve Efficiencies and Productivity in Logistics operations

 

Improving efficiencies and productivity in logistics operations involves having excellent business analytic capability and streamlined process. Whenever an enterprise makes the decisive step to use an integrated TMS, they do so to increase the general efficiency and productivity in the logistics operations of the business. An excellent TMS has the ability to store and analyze every detail, KPIs in the transportation area. It assists logistics manager by presenting analyzed data in a comprehensive way. With machine learning, a modern TMS can continue to learn and become better, more precise as the enterprise uses the software.

 

Analytical Dashboard

 

Having an exceptional mean to track deliveries, shipments and problem along the way is also a very valued quality of any TMS. One more positive aspect is that a TMS can identify the exact amount of cost devotes to shipping, therefore the enterprise can be more fiscally in control. Multiple modes of communication and across numerous participants in the supply chain is also an added benefit. While every enterprise would benefit from a transport professional, those who apply TMS solution can fully appreciate the full control capability and total cost savings that it brings about.

 

Benefit 3: Real-time Visibility

 

A significant benefit of a TMS is the ability to help businesses track products at every stage in the process until it gets to the consumer and detect any probable risk anywhere on the selected route. Following the GEODIS 2017 Supply Chain Global Survey, supply chain visibility is now the third chief strategic priority for 623 industry experts in 17 nations. From sources to manufacturers to clients, visibility aids businesses to respond effectively to critical events and other complications. This is done by lots of ways, from real-time map, geo-fencing to progress keep tracking, Proof of Delivery (POD).

 

 

Real-time Map

 

Real-time visibility is the key to risk management in the supply chain. We have devoted an entire article to talk about Supply Chain Visibility, you can check it out here.

 

Benefit 4: Improve Customer Satisfaction

 

Source

 

Transportation Management System can be a way to improve the accuracy of your Service Level Agreement (SLA) with customers. It establishes better timeline scheduling, giving you better control over the transportation area. With different time windows taken into account in route optimization, it’s easier for you to guarantee goods being delivered on time, thus permitting better customer satisfaction. Also, with analytics and reports, enterprises can see the effect of each decision within the software. A TMS can also establishes communication line for getting feedback now and then from customers. That is a crucial feature for continuous improvement.

 

Conclusion

 

With an excellent Transport Management System in place, every enterprise would find the benefits listed above very useful, as the goal of every business is to deliver quality products and services to satisfy customers. A TMS solution can be customized to fit the needs of your enterprise. This flexibility is there to allow maximum gain and effectiveness. So, if you do not own one right now, it is time to get your TMS in place.

 

Want to Optimize your Transportation Operation? Contact us Now for A Free Consultation!

 

References:

1.http://www.logisticsmgmt.com/wp_content/oracle_wp_transmangmt_0814b.pdf

2.http://www.werc.org/assets/1/workflow_staging/Publications/637.PDF

 

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