A transportation management system (TMS) can improve production, reduce supply chain inefficiencies, and keep all logistics management controls in one place. The transportation industry is finally recognizing the advantages to TMS shipping software, and it’s become one of the most talked about terms in today’s logistics management industry. Since more shipping companies are implementing TMS shipping software, transportation management systems are expanding their reach further into the market to spread this shipping technology. First, we’ll look at why TMS is suddenly expanding and finding success in logistics management, then we’ll look at what the benefits of implementation are.
Growth of TMS Shipping Software
There are a few reasons that transportation management systems are gaining ground faster now than they had in the past. The main factors leading to increased implementation rates are:
- Integration with other shipping software systems like ERPs and WMSs is much easier now than it was in the past. Previously, TMS shipping software was only available as an in-house system that had to be installed on each computer connected to the network. This made integrating different shipping software difficult, but now cloud-based TMS and the Internet of Things makes cross platform, and even cross company integration much easier. The old, in-house system also made the investment costs of a transportation management system too expensive for many shippers.
- The cloud has also cut implementation costs for TMS shipping software drastically. Smaller and smaller shipping companies are now able to afford the shipping software that was before out of their price range. Accessing the transportation management system online is much cheaper and much more effective for logistics management, as all involved parties can quickly view the necessary data from anywhere.
- The demand for shipping data and analytics are more essential to success in the industry than ever. Shippers now need the data and analytics that a TMS can provide to improve their logistics management, but it used to be out of their price range. The increased demand in the industry for shipping data has TMS providers looking for ways to reach a lower cost market.
Benefits of Transportation Management System for Logistics Management
There are numerous benefits for a shipper’s logistics management strategies that can be improved by a transportation management system, but there are a few that stand out more than the others. As more and more companies adopt a TMS to enhance their logistics management, there is also a rising number of companies that say they plan on adopting one. For those who are considering adopting a TMS but are maybe a little unsure, or those who aren’t even planning on it, it’s important for them to know what some of the benefits of transportation management system are.
- The ROI and savings gained from the use of a TMS is one of the greatest benefits for logistics management. Especially now, with cloud-based TMS and lower costs of implementation, shippers will see a return on their investment sooner. Even beyond the ROI, there will be continued savings on shipping costs will work to improve your logistics management.
- Cloud-based transportation management systems also benefit logistics management by making it easier and less costly to store all your shipping data and analytics. It is cheaper to use the storage costs over the cloud, because you don’t have to buy the computers for storage of in-house data, only pay to use the space on servers elsewhere.
- TMS is also beneficial, because it works on proactive logistics management instead of reactive logistics management. Instead of finding issues and reacting, shipping data and analytics from transportation management systems are used to see what could happen with certain shipping decisions to choose the cheapest and most efficient options.
- Logistics management decision making is made easier down the entire length of the supply chain. The transportation management system uses shipping data to look at different shipping options and find the one that will be most effective, without problematic delays in the decision-making process.
- Transportation management systems can also improve specific problems, for example, as a response to the driver shortage. TMS shipping software improves simplified routing, loading and unloading, efficient LTL consolidation, and more that helps to ensure effective shipping even with fewer drivers and less capacity.
Improving logistics management for every part of the supply chain can be a challenging task, but cloud-based TMS shipping software is making it easier. There are a lot of split-second decisions that could impact your bottom line, and having the shipping data and analytics to proactively find the best solution to improve your shipping, and save money. Those considering implementing a TMS, and those who haven’t yet given it much thought need to pay attention to the benefits of this shipping software for their logistics management strategies. The cloud has changed the transportation management industry, and soon a TMS will be a necessary tool to stay in business, and it’s nearly there already.