Benefits of implementing Transportation Management System

Benefits of Transportation Management System

World trade volume is increasing day-to-day, with the increase in logistics and networks are getting more complex. Most of the companies are transforming to a digital supply chain and implementing the Transportation Management system as a part of it.

Transportation Management System (TMS) software helps organizations to move their freight from the origin to destination point efficiently, with cost-effectiveness and consistency. With the help of TMS, firms can increase the revenues-based process enforcements, optimizations, and analytics. In this blog fruiSCE® TMS has listed the top five benefits of implementing and effectiveness of transportation management system.

  1. Increased Customer Service:

Transportation Management Systems software gives reporting and analytics competencies that help to examine the effects of business decisions on the logistics network.

In general, Logistics Managers choose the carrier with the list they have at that time. Managers can filter based on cost, transit time, and insurance limits The software generates detailed reports by comparing the list of carriers we have and gives the best carrier by analyzing cost, transit time from the previous deliveries. This way, managers can choose the best carrier for the customer without negotiating on customer service

2. Warehouse Efficiency:

The more usage of transportation management systems the more chance of decrease time on freight management. If the transportation management system is integrated into other systems like ERP and WMS, there will be a decrease in time spent on data entry and correcting mistakes. If TMS is combined with WMS, you can get a clear supply chain visibility which helps to make better-informed decisions by the management. 

3. New Delivery Capabilities:

A robust TMS offers the ability to optimize your shipping ways. If a logistic manager wants to set up an inbound program within an organization among multiple locations,TMS increases the overall efficiency and reduces the cost incurred. A transport management system allows creating a master bill of lading with individual logins with multiple locations and can be managed by a single person.

4. Inventory Reductions:

Transportation management systems make sure that customers are receiving their shipments on time. This gives you more time to plan a better inventory as per the demand.

5. Cash Flow Improvements:

By having a proper transportation accounting through freight payment, auditing, and consolidation services within TMS software, one can reduce 5 to 10 % of shipper payments and 2 to 5 % on total freight bill by reducing inaccurate charges and duplicate payments from an outsourced provider.

About fruiSCE® Transport Management

fruiSCE® TMS is a comprehensive solution for supply chain organizations with a focus on transport and logistics operations. Key features include transport order processing, shipment management, freight management, document management, and all transport operations suitable for all parties in logistics.