6 Advantages of the Transportation Management System in 2022

6 Advantages of the Transportation Management System in 2022

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Nowadays, the business environment is pretty volatile, complex, and uncertain. And adding it to the growing digitized transportation industry, the global transportation management system market is rising vigorously. According to statistics, it is expected that the TMS market will reach up to $6.63 billion by 2026.  

Basically, these systems give you flexibility, scalability, and a systematic procedure that helps you in handling all the transportation activities around the whole firm and supply chain. Also, they also allow their operators an overview of all their transportation activities, which includes everything from the order information for vehicles, the routing progress, and many more.  

If your business is also involved in manufacturing, retail, distribution, eCommerce, or third-party logistics in any manner, then you must be aware of the transportation management systems and what they can do. However, the benefits of a transportation management system do not end up with the above-mentioned industries. Because, no matter the industry, there are many organizations, that deal with logistics regularly, and get benefitted from transportation management solutions 

In simpler words, transportation management systems are logistics platforms that provide their users with the control to handle and optimize the day-to-day operations of their transportation fleets. It falls under supply chain management and lies directly between a company’s Enterprise Resource Planning system and Warehouse Management System. However, its main function is to strategize and carry out the physical movement of goods.  

Advantages of Transportation Management System 

Not many people in the freight industry realize this, but there are several advantages of TMS. And in terms of shipping freight, these advantages go way beyond usual cost savings. So, we’ve collected some of the useful advantages of these logistics solutions for you:  

Better Cash Flow 

As mentioned before, effective transportation management software helps your business in decreasing its total freight costs. The appropriate system examines all the financial features of each and every route, and then generates solutions to minimize freight expenses. Also, it looks within different areas, including, fuel consumption, driver overtime, negotiated rates, and many more.  

Integrated Planning and Execution 

The latest and updated versions of transport management solutions mingle effortlessly with your other logistics management systems. Usually, these systems consist of the following: 

  • Purchasing and Order Management Systems  
  • Warehouse Management Systems 
  • Customer Relationship Management 
  • Supplier Relationship Management 

And this incorporation will help your company to carry out the orders in the most cost-effective carriers. It also includes optimal route planning and load optimization. Which results in the planning and execution of orders being done faster and easier way.  

Yard Management and Warehouse Efficiency 

Transportation management systems help you with warehouse and yard management. So, the more you use the platform of TMS, the more you will be able to reduce carelessness in your freight management, and this will give you a lot of time to optimize your yard and warehouse. Considering, the TMS software is inter-connected with your Enterprise Resource Planning and Warehouse Management Systems, you will also be able to decrease the number of entry errors and get the combined supply chain visibility required to make informed business decisions, completely. 

Inventory Management 

Do you know, by using the TMS solution, companies can monitor their order and shipment lifecycle in real-time? And also they can get status updates on their goods as they develop through the routes. So, this provides them with an accurate forecast of their inventory, which helps them in improving the accountability of their whole supply chain network.  

In addition, the TMS software allows companies the confidence that their customers are getting their shipments on time. Not to mention, having this high level of control over inventory management helps in standing to improve all other supply chain operations down the line, considering that the eCommerce freight shipping is expected to increase in the future. 

Better Supply Chain Visibility 

In today’s times, the TMS solutions can be combined with the whole supply chain, they can provide full transparency. And having this kind of high-level visibility and access to data from all other management systems can be pretty beneficial for every business. Also, this will provide logistics managers to identify and act on any opportunities to solve potential problems that may arise in a quick and effective manner. It will certainly keep customers highly satisfied, and you don’t have to compromise with the performance of your business. 

Optimized Routing Capabilities 

As we all know now, order cycles have shortened, and it has resulted in smaller shipment sizes, which made the optimized routing way more critical than ever. However, you don’t have to worry because, with the right TMS tool, you can implement pool distribution. This is not only a cheaper method of delivery but also a faster method among others, that gives you a greater level of visibility and control. Additionally, the operators can select their ideal pool point to decide which shipment is to be picked up or delivered.  

In the end, the right transportation management system solution always provides cost savings to its users. It increases the company’s overall productivity and efficiency. Moreover, it gives all the above-mentioned benefits to its clients. 

So, learn more about how a BoxOn transportation management system can help you grow your business by registering for a Free Demo.