Top 6 benefits of a Transport Management System for shippers

Have you already automated the procedures surrounding the transport and distribution of goods to ensure that your order processing, route planning, delivery and billing runs smoothly and flawlessly? If not, you are missing out on opportunities! Efficiency in the logistics industry is a direct contributor to profitability. With an adequate Transport Management System (TMS), you’ll be able to have control of your logistic processes. Being in control is not just beneficial for your business, it also helps you carry out customer demands. As a business in trading- or production, you may financially benefit from a Transport Management System. Find out all about the benefits of a TMS in this blog.

Benefit 1: Cut costs with a rate-comparison system

When it comes to destinations, you’re often able to choose from a plethora of logistic partners. Not only can you discern them based on the transport location, but some specialize in transporting specific goods. Comparing all logistic partners for each transport is rather impractical. What if there is software available that does the comparing for you? By considering transporters, but also individual transports. The software compares all possibilities in the blink of an eye, which leaves you the simple option to choose the transporter that offers the best value for money. Insights into the performance of a transporter may also help you negotiate the best price. You either get a better price offer, or the carrier has no other choice but to offer more added-value services.

The price you pay for transport is of the utmost importance. The Transport Management System offers oversight of the expected expenses for transportation. Is your transport particularly pricey? The system lets you check beforehand if everything is in order. Aside from that, it offers insight into future expenses, so future quotations are no longer a surprise. Having an overview of your future expected costs offers valuable insights. For example, it may be so that a certain carrier offers more value for money in one area, while it may be an entirely different carrier for another area.

Benefit 2: Fewer mistakes with automation

When it comes to manual labour, mistakes are inevitable. Yet you need to do your best to prevent them. After all, it saves time and money. Most errors occur when last-minute tasks need to be taken care of quickly. Do you not yet have a system in place to handle your logistic processes? Then manual labour may cause unnecessary risks.

A solution to this is to give the carrier access to the Transport Management System. Usually, the so-called supplier portal is part of the TMS. That way carriers are always up to date on what they have to carry and where to. A TMS easily links to an Order Entry-, ERP- or a CRM system. By integrating your systems you’ll reduce manual labour. Fully integrating a TMS into your systems helps to simplify complicated processes that require a lot of paperwork. A good example is the official documents necessary for sea- and rail freight. A TMS can also help you deal with customs documentation.

Fewer mistakes lead to a more satisfying experience for your buyers. It also reduces costs by preventing mistakes.

Benefit 3: Keeping your customers up to date

Data-driven decisions are a vital element of successful businesses. But first, you need to have the data. A Transport Management System secures your data for you and offers analysis opportunities. Not only does it offer insight into what goes well, but also in what can be improved. Correct management information allows you to make the right decision, including your logistic processes. By establishing a management dashboard, you keep sight of whatever data is most important to you.

Benefit 4: Assistance in managing logistics

Data driven decisions are a key element of successful businesses. But first you need to have the data. A Transport Management System secures your data for you and offers analysis opportunities. Not only does it offer insight into what goes well, but also in what can be improved. Correct management information allows you to make the right decision including your logistic processes. By establishing a management dashboard, you keep sight of whatever data is most important to you.

Benefit 5: More control over your dock planning

Many warehouses deal with chaotic fluctuations in workload. Where your employees were enjoying a cup of coffee and some socializing one hour before, they are now rushing to get several trucks unloaded. Or there are plenty of employees present, but the warehouse is full? There goes your careful planning. As a logistics manager, neither situations are desirable and pleasing. You wish to spread the work across the entire day, so your employees can do their jobs as efficiently as possible.

Preventing fluctuations in your dock planning and having the right resources and capacity available at the right time is of the utmost importance. How? By having control over the movement of goods and logistics surrounding your warehouse. With a Transport Management System, you can enable dock planning, coordinate incoming and outgoing transports, and even automatically plan recurring appointments. With planning under control, you prevent wait times and save costs.

Benefit 6: More customer satisfaction thanks to integrations with other systems

It is wise to look into the integration possibilities of your other systems with the Transport Management System. That way, you get the most out of the system. The goal here is to join forces for the most efficient system possible.

One of the most obvious possibilities is integration is with an ERP system. As soon as an ERP system indicates that an order needs to be shipped, the TMS can start doing its job. By linking with the ERP system, you save time and prevent typos by avoiding(double) manual data entry. Once an order is delivered, the TMS can communicate with the ERP system that it’s time to start invoicing. Not only does this automate administrative tasks, but it is also beneficial for your customers’ satisfaction level. After all, they are serviced more quickly and more flawlessly.

Even if you partner up with several carriers, a TMS can integrate into your existing system. Goals here is more effective collaboration within the supply chain. By linking both software systems to an EDI, you easily exchange data between the two systems. The shipper gives the order to pick up a container at a certain carrier, after which the carrier can communicate that the container has been delivered.