Does a transport management system improve productivity? The short answer is a clear ‘yes’. Every user of a TMS will find they’re able to improve fleet productivity. In this article, we’ll look more closely at Transport Management Systems – what they are, who uses them, how they use them and why businesses in the transport industry are finding them increasingly necessary.
What is a Transport Management System (TMS)?
A Transport Management System makes use of technology to plan, execute, and optimise the movement of goods, at the same time retaining compliance and maintaining required documentation.
Sometimes referred to as Transport Management Solution, a TMS gives control and visibility into transport operations, compliance and documentation, whilst ensuring timely and efficient delivery.
Increasingly, Transportation Management Systems have become a vital, integral part of supply chains, affecting every element of the process.
Who is a TMS for?
Transportation Management systems are an essential tool for any company that regularly moves goods. They might operate in any of the following sectors –
- Manufacturing
- Distribution
- Commerce
- Retail
Until recently, it has been the bigger businesses that make use of TMS. However, since the advent of cloud-based TMS solutions, smaller businesses have been able to afford to enjoy the numerous benefits that these systems provide.
What are the key benefits of a Transport Management System?
Here we highlight the principle objectives and advantages of Transport Management Systems.
- Low-cost transport
This is arguably the biggest benefit of Transport Management Systems. The incorporation of order processing, inventory, and customer relations management into the whole transport plan massively reduces logistical costs. This integration enables businesses to
- Select the most suitable vehicle for each operation
- Choose the most efficient route
- Increase the speed and efficiency of each job
- Optimisation routes
A TMS will provide businesses with assessments and analytics, as well as recommendations for the best cost-cutting strategies, for example, which vehicle and route should be used to execute the transport effectively. - Real-time connectivity
A Transport Management System will provide real-time connectivity across the whole supply chain. This enables you to achieve 100% visibility that can result in businesses being able to develop competitive new strategies. A TMS enables businesses to monitor their drivers and shipments in real-time. With this data, they can track the time spent on each route, thereby creating effective and optimised route plans. - Updates on delivery data
Businesses can track their products from the start of the delivery process right through to the end while identifying potential challenges along the way. They receive real-time updates on any delays. This enables them to respond quickly to issues. This, in turn, provides insight into a business’s weaknesses, enabling all-round improvements in efficiency. - Enhanced billing processes
Until recently, invoicing and payment procedures were costly and time-consuming. A Transportation Management System enables businesses to manage their finances more effectively through electronic invoicing and inspecting. Procedures that, in the past, took hours or even days can be completed with 100% accuracy in a matter of seconds. With a TMS, a driver can scan proof of delivery and send to base via mobile devices. By doing this you can invoice your contractor right after delivery. You don’t have to wait for physical documents. Time costs money! - Reduced paperwork
Payment procedure automation within a Transport Management System will save countless amounts of money and time otherwise spent on tiresome paperwork. By cutting out the human element, your processes will be much more accurate and, therefore, efficient.
TMS, much more than saving time and money
The current global trade environment is volatile. It’s more important than ever to use a TMS that enables you to be more efficient while still compliant.
There are so many benefits of cloud-based Transport Management Systems. Many of the more obvious advantages revolve around saving time and money. However, arguably the biggest benefit of all is the improved levels of customer service that you will be able to provide. A TMS will enable you to transport goods reliably, effectively and quickly. The end result? An enhanced reputation for customer service, leading ultimately to more sales and more satisfied customers.
AddSecure is a leading provider of up-to-date TMS systems. Contact us today for a free demo.