Home » Business Advice » Why do businesses need Transport Management System?

Why do businesses need Transport Management System?

In today’s e-commerce world, customers have become more demanding; for instance, the growing preference of same-day-delivery and real-time tracking proves that customers are not ready to wait too long for their orders. Thus, to keep up with the ever-growing demand of the customers, supply-chain companies need to break out from traditional ways of working to a more automated, quick, and accurate system. The biggest challenge for every logistics company is to manage its transportation system efficiency and ensure the rapid movement of goods from one point to another. Therefore, today many businesses have adopted the Transport Management system that simplifies the process and enhances the freight’s overall performance.

What is the Transport Management System?

We live in a time where access to real-time information is extremely critical for business; this need is even more felt by the transportation department that faces numerous daily challenges. Thus, TMS or Transport Management System helps organizations holistically manage all freight and transportation team activities, so that the cost is minimized, and the ROI is maximized.

TMS helps the transport managers understand the transportation route; it helps them coordinate with their drivers and notify them about route options and estimate the exact time needed for transportation of goods. The best part of TMS is that the data presented by the software is easy to understand and can be shared between multiple teams for speedy decision making.

What are the Benefits of Transport Management System?

Companies who have adopted the TMS can clearly state testimony to the big things that this one software can achieve. Although cost-saving is the goal, yet the system manages to do much beyond that. Overall, it is a true life-saver for the entire logistics department. Let’s look at some of the advantages of using a TMS.

System Integration & Unified Planning

The next generation TMS provides seamless integration between the existing systems. This means that employees do not need to operate multiple systems for their job; the TMS integrates the current systems like Warehouse Management System, CRM system, Purchase management system, and many others. This integration will empower organizations to perform orders effectively. Just put, now with the TMS, scheduling, and execution of orders will be seamless and faster.

Reduced Paperwork

Transportation involves a lot of paperwork, but with the TMS, the logistics team can ultimately minimize this activity. The TMS enables automation of all accounts, thus saving both time and money. Additionally, the admin team’s efforts will be reduced considerably, and most importantly, the accuracy levels in billing will be close to 90%.

Real-time Driver tracking

In the traditional freight management method, we had to rely on the driver’s word, but now with the help of the TMS, you can evaluate the routes taken by the drivers, further you can notify the drivers in case of bad roads or heavy traffic. This way, your transportation time and money will be saves. The TMS also allows logistic managers to evaluate the performance of different drivers, and it takes care of the safety of drivers.

Improved ROI

With all the above benefits, the overall expenditure of handling transportation can be massively reduced, and the performance of the freight can be optimized. Further, the system also provides insights into every aspect of logistics, enabling managers to study and take corrective measures for process enhancement. Together, if all the TMS functions are used efficiently, the ROI of the company will inevitably grow.

How to choose a TMS provider?

You must have understood the importance of TMS software. However, it would be best if you kept a few things in mind before selecting a TMS vendor.

  1. Do not select a vendor because of cheap rates; instead, check the vendors’ features and evaluate them as per your needs.
  2. Ask the TMS vendor to provide extensive training on how to use the software to your team. Include the training aspect in your deal, as without training your staff, the software is of no use.
  3. Before purchasing a TMS, you need to equip your drivers with Smartphones so that they can use the on-road features of the TMS software effectively.
  4. Ask for a free trial, you might love the software at first demo, but it is also essential to know the ease of using it. Thus, request a free trial before purchasing the software.

Bottom Line:

To fulfill the growing customer demand, a TMS software is necessary; it will save your time and money and help you stay ahead of your competitors and build a more extensive customer base. So, select the right vendor and improve your logistics business with a TMS.