The shipping industry continues to change as shipping technology continues to evolve. Transportation management system (TMS) shipping software is developing quickly, and supply chain management strategies change with it. Shipping technology is also changing with the increase in use of application programming interfaces (APIs). So, how do transportation management systems and APIs come together to optimize supply chains?

In nearly every industry, there are technologies and applications designed to manage operations, and save time and money. These technologies are often siloed, however, and the goal of new shipping technology is to integrate them. Transportation management systems need to be able to communicate with other shipping software, other management systems, and shipping industry partners. TMS efficiency depends on the ability to break down siloed departments, and API enables the communication to optimize supply chain management.

API comes in to play to improve communication between all relevant parties in a company’s shipping operations. APIs are technology that make it easier and faster to move data between internal and external systems. Supply chain management operations integrate APIs into the transportation management system shipping software to establish communication between carriers and other shipping partners. APIs play an integral role in shipping business operations and solutions, and they’re becoming more common in the industry.

APIs and Supply Chain Management

APIs and TMS integration enables real-time visibility. All management systems and shipping data sources are in constant communication through API technology, enabling better supply chain management. It will operate on a central transportation management system that allows shippers to track a shipment and monitor supply chain performance in real-time. The TMS shipping data and real-time availability and supply chain visibility also leads to predictive analytics to notify shippers of potential disruptions and viable solutions.

Transportation management systems and APIs also cut shipping costs and reduce delays. The communication between shipping technology systems reduce the influence of human error. The errors the use of TMS shipping software and APIs reduce are usually very costly, lead to supply chain delays, and negatively affect customer relationships. That’s not to say that API data exchanges and transportation management systems will never make mistakes, but it eliminates information loss and mistakes that happen with communication via emails, calls, and so on.

TMS shipping software and API integration also provides better shipping data and analytics. This combination of shipping technology and APIs provide actionable shipping data which enables better business decisions on supply chain management issues. Good shipping data puts businesses in a better position to negotiate better shipping rates, and transportation management systems are the best shipping technology to provide the needed shipping data. The TMS and API give insight on shipping patterns and disruptions to help cut shipping costs.

What It Means

The shipping industry and supply chain management are changing. Advances in shipping technology, shipping data analytics, and technology communications are happening faster and faster. Transportation management system shipping software and API integration are becoming more popular in the industry, and soon they will be necessary to succeed in the industry. It’s important to embrace the technological changes in an evolving industry to stay competitive.

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