Freight shipping companies know transportation management system (TMS) shipping technology is a necessary tool to handle complicated logistics processes. The industry is still seeing an increase in implementation of TMS shipping software, and there are a few key supply chain processes enabled by TMS responsible for this trend.

There are still some shippers who don’t consider their TMS indispensable for operations, but that won’t be true for long. The larger problem is that, among freight shipping companies using transportation management system shipping software, many of them are still using older legacy systems. The TMS market has gone through several changes in recent years, and the new abilities of freight shipping software are much more advanced.

Not all freight shipping companies use it, but everyone in the industry knows about TMS. Most shippers know it will be a necessary logistics industry tool for them soon, as well. The freight shipping went global, and that’s made it a much more complicated industry. Expectations for shipping are different now. Freight shipping businesses are expected to reach all corners are of the globe, and they’re expected to do it faster, and at cheaper rates.

The importance of TMS shipping software and shipping data analytics can’t be overstated in a world where real-time data is the basis of decision making. TMS helps gather and outline all data points for freight shipping operations. Shipping data is collected on freight carrier rates, routing, on-time delivery, and more to streamline logistics processes and optimize supply chains.

Today’s TMS

New transportation management systems have developed new abilities from the old legacy systems. Their freight shipping data and analytics capabilities are greater now, and the reporting leads to better business decisions. The entire supply chain can benefit from a TMS, and logistics management specialists and 3PLs utilize them to run their businesses. These four key processes are enabled by the freight shipping technology.

Shipment Planning – The freight shipping data that a transportation management system helps logistics professionals make better shipping decisions. They can plan freight shipments according to specific criteria in real-time. Shippers can use the TMS to decide between an array of freight shipping carriers and choose based on accumulated data on shipping rates, route optimization, and delivery speeds.

Freight Shipping Data – TMS provides shipping data to measure performance. Freight shipping companies can get KPIs on the shipping criteria they desire to most accurately measure their freight shipping performance.

Supply Chain Visibility – Transportation management systems offer greater supply chain visibility for freight shipping. Logistics processes are improved by greater visibility of freight. TMS shipping software provides real-time visibility from before pickup to delivery, and beyond.

Automation – A TMS makes freight shipping and logistics processes easier through automation. It’s easier to plan and execute shipments with automated functions like carrier acceptance processes and EDI invoicing.

Efficient Logistics and Return on Investment

Cutting shipping costs and saving on freight is the most obvious and desired benefit of transportation management systems. Freight shipping companies who implement a TMS are looking for a big ROI. A TMS collects and provides cost and shipping information on several carriers, which leads to savings with lowest-cost carrier selection, optimized routing, and performance analysis. TMS not only cuts freight shipping costs, but saves time, as well.

The efficiency provided by transportation management system shipping technology is another benefit that shouldn’t be overlooked. Shippers can make decisions more quickly and efficiently, because a TMS will track shipments, analyze and report on potential solutions automatically, and provide shipping data in easy to understand formats. Human error will be diminished in supply chains using a transportation management system. The increased efficiency and ROI give freight shipping companies a competitive edge.

 Beating the Competition

TMS used to have high implementation costs, complex systems, and ongoing maintenance which deterred smaller and midsized freight shipping companies from implementing transportation management systems. It used to be that only large corporations could afford them. The savings and efficiency gave the larger companies a further advantage over the smaller companies, but the TMS market evolved, and now shipping companies of any size can use one.

Implementation is easier than ever before with the cloud, costs have gone way down, and maintenance is the responsibility of the TMS vendor. The developments in this shipping technology are making it more affordable without losing the efficiency and savings, if not increasing them.

Transportation management system shipping software is still evolving, but it continues to provide efficiency and savings in logistics processes all along the supply chain. TMS systems are now available to all sized freight shipping companies, and it’s never been easier to optimize your supply chain and uncover savings that will help you compete in the industry.

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