What no one talks about when it comes to TMS
…and more importantly, why your logistics need TMS 2.0
A TMS can be a lifesaver for shippers and logistics service providers who manage supply chain and logistics. There comes a time when every business owner realizes the importance of automation on the road to success. Implementing such technology can significantly improve the efficiency of the whole supply chain process.
Think about it: the habits of consumers keep changing with time, meaning that not only the sales process needs to be adapted, but also the optimization becomes a focal point. Considering the limited amount of time we have to make customers happy, automating some of the tasks that need to be done is definitely a smart move. What is a TMS and what are the benefits of its recent developments in the market? Here's all you need to know about it.
WHAT? TMS stands for Transportation Management System. This is a logistics platform that manages the physical movement of goods and everything it involves. This means that it deals with the planning, execution, and optimization of the supply chain and logistics.
HOW? A TMS allows manufacturers, distributors, retailers, e-commerce and third-party logisticians, to manage and optimize transportation fleet operations. This enables seamless global trade. With its tools and functionalities, it helps companies with complex or basic logistics and transportation needs, to carry out an inbound and outbound movement of goods.
WHY? Deploying a TMS within your company can help to increase efficiency, reduce costs and now also gain real-time visibility and improve the overall customer service.
Parcel sorting, round planning, optimization, load building, operation execution, payment, visibility, and real-time tracking, and carrier management are some of the functionalities that enable the benefits.
Global trade Having a digital system breaks down any barrier or distance between all stakeholders around the world. It makes global trade more efficient. Also, it makes it possible to have a more agile process, taking it down from weeks to days or even hours.
Easy optimization A complete TMS enables logistics optimization and simplifies round planning. With this being simplified, it is easier to expand on your delivery service methods.
Inventory management Analysis gained from data provides insights to take better and smarter decisions when it comes to replenishment strategy. In the end, this reduces inventory levels, costs and prevents backorders.
Reduce risks and costs A TMS makes optimization and planning easier, reduces delivery problems. With fewer problems, there are fewer costs destined to solve them.
Available capital Saving costs in inventory and solving issues gives a free additional capital that can be re-invested in other parts of your logistics or your business.
Improve planning Having your warehouse management software connected to your TMS allows you to have better outbound planning capabilities. This improves the effectiveness when sorting parcels and loading fleets.
Digital process Making your supply chain a digital process makes it much more effective as it eliminates manual process and paper trails, simultaneously becoming more sustainable.
Improve data accuracy Transportation management systems collect data. A TMS can be integrated with other systems you are already using, like a warehouse management software (WMS) or an enterprise resource planning system (ERP). Integrating them together will save you a lot of manual work and reduce human errors.
Carrying out analysis based on data can help uncover important KPIs and solve issues related to the service process. Taking actions on transportation problems, delayed deliveries or damaged packages will ensure smart decisions and improve customer satisfaction.
Machine learning added value Imagine applying machine learning in a TMS to help to identify patterns, which is helpful to foresee risks and increase productivity and collaboration.
Real-time tracking While the common TMS's do not have this feature, there are delivery optimization solutions on the market, which also enable real-time tracking. This allows not only the management but also the customers, to have visibility on the ongoing shipping process. With this, supply chain and logistics managers can foresee and prevent events that can cause problems during the process, like traffic or weather conditions.
Improve customer experience While the (online) shopping experience is important, the most desired moment for customers is when they have their purchases delivered to their doorstep. Information concerning the package status is demanded and expected from shippers. This insight eases customers' minds, builds trust due to transparency and creates a seamless customer experience.
Ensure the last-mile Optimizing and planning your deliveries on smart routes and with real-time information to prevent any issues, TMS can prevent delays, damaged goods, and reverse logistics.
As you can see, a TMS provides many features that can make your process more efficient. The above-mentioned benefits should be enough of a reason to invest in a TMS, but trust me, a TMS package can bring you even more benefits. What no one talks about concerning TMS is that the optimization aspect is just a fraction of the puzzle. A TMS should not just be an optimization software, but a full package for all the stakeholders in the logistics process, promoting a seamless flow of communication.
Urbantz is one example of a solution, which can be used in multiple ways by different users within last mile logistics. It allows managers to create round optimization, provides a mobile application for deliverymen to get a solid but speedy onboarding, to manage the delivery process in an agile way, and finally a platform to gather feedback from customers.
Learn how little effort is needed to get this TMS 2.0 to simplify your logistics and make your customers happy with their last mile experience.