To most efficiently improve your supply chain management strategies you need to look at the shipping aspect of your business as more than just an expense. Transportation management system technology can provide an impressive ROI for any freight shipper, manufacturer, or distribution business. The potential benefits of innovative and modern TMS software surpass freight shipping costs, though those are clear benefits, as well.

Whether you’re shipping small parcel or ltl freight, domestic or international, inbound or outbound, it really doesn’t matter. Transportation management systems can process all modes, even intermodal shipments, and they do it efficiently and cost effectively. Supply chain management is done more effectively, and simultaneously will less work, with the help of a powerful TMS. No other logistics management solution offers such a versatile array of solutions to save money shipping by optimizing supply chain performance, and providing accurate and actionable shipping data and analytics. Implementing a TMS frequently proves to be more beneficial for supply chain management than older, more traditional methods of transportation management, so let’s take a closer look at some of the advantages that put TMSs above other logistics management solutions:

1. Warehouse Management

There are a couple of ways that transportation management systems can improve warehouse management, even though it doesn’t seem intuitive. One way this can work is through integration with a warehouse management system (WMS), or enterprise resource planning (ERP) software. This automation decreases time and resources put into data entry, and increases supply chain visibility, which allows you to minimize inefficiency, further cut freight shipping spend, and make better business decisions. In addition, a good TMS can help with warehouse management by reducing time spent on freight management which allows you to increase time spent on projects within your warehouse.

2. Inventory Management

Particularly for ecommerce shipping business, a transportation management system can improve how you manage your inventory because the shipping data that the TMS complies can tell you a lot about your inventory to aid in anticipating inventory needs in the future. Data provided by transportation management systems allow for actionable business intelligence for all segments of the supply chain. You can put more time and effort into managing your stock because the TMS gives you the peace of mind that your customers are receiving their packages on time.

3. Improved Delivery

A TMS isn’t just about getting cheap shipping rates, but also works to improve the way that you ship your freight or small parcel. You will be able to create a master bill of lading, logins for multiple business locations to be managed by one individual, and you can created distribution programs between your different company locations to also improve inbound freight deliveries.

4. Better Cash Flow

The right transportation management system should also have a small parcel auditing and freight auditing, as well as freight payment solution provided as part of its service offerings. By utilizing the payment and auditing services provided by your TMS vendor, you can pay a fraction of what you would pay per invoice if you used a payment and auditing services separate from you transportation management system vendor.

5.Better Customer Service

Customer service is an important part of any industry. For shippers, one of the easiest ways to make customers upset is to have late deliveries. To keep customers satisfied it’s important not just to get cheap shipping rates, but to utilize small parcel or freight carriers that will actually be able to get undamaged packages delivered by the time they’re supposed to be there or earlier. Luckily this is a major part of using a transportation management system: shipment data and analytics. Your TMS will allow you to analyze carrier use to strike a perfect balance between the least cost carrier and carriers which perform on-time deliveries most frequently. Having this data will enable you to be confident about on-time delivery performance, and keep you from having to waste time on resources dealing with customer complaints.

While these are just five examples, there are countless ways that transportation management systems can improve logistics and supply chain management to save money shipping and improve shipper performance for both freight and parcel. The shipping industry as a whole is now a very technology dependent field, and shippers will need up-to-date shipping software and technology to keep up with their competition, particularly for those in the ecommerce shipping business. Many shippers don’t realize the far reaching impact of a good transportation management system, or that it can be integrated with your WMS, ERP, and so on to boost logistics more than any other technology on the market currently. Bring your company to the next level and implement a modern and efficient TMS.

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