For a company that is in logistics or ecommerce, or involves shipping or transportation of any sorts, a TMS or Transportation Management Software is an absolute must. TMS is essentially a solution that can improve logistics and transport related operations, enable better customer service, and overall improve company operations. TMS allows companies to transport goods from origin to destination in an efficient and safe manner, and allows them to do so in a cost effective manner. Companies need to understand the importance and the implications of a TMS, and listed below are five benefits of a TMS:
1. Transportation Management Software Reduces Expenses
Transportation management software helps reduce the amount of money companies spend on freight transportation and related expenses. TMS enables users to view analytics that can help optimize the freight routes and delivery systems to help companies reduce significant expenses accordingly. By reducing their own freight expenses, companies would be able to extend tier services to their customers at a reduced cost and may even gain a cost advantage over their competitors.
2. Transportation Management Software helps Track Orders
Transportation management software allows companies to view and track their freight deliveries in real time. Companies can track where their drivers and their vehicles are located at a given time, and can hence analyze which routes take a longer time on an average and which routes are shorter. By doing so companies can also alter their delivery routes to reduce time in transit and hence significantly reduce costs. By tracking their orders in real time, companies can also ensure that their employees do not go off-route and hamper the safety of their deliveries.
3. Transportation Management Software Helps Improve Customer Service
Transportation management software allows companies to improve their customer service due to the system’s capability to track deliveries in time and let customers know exactly when they would receive their order. Most TMS have in-bult capabilities to send our emails and SMS to customers to notify them when their order has left the warehouse and when it is expected to be delivered to the given address. This level of customer service improves the customer’s trust in the comay and allows them to stay informed about their deliveries.
4. Transportation Management Software makes Warehouse Management Easy
Transportation management software makes warehouse management easy as most TMS have in-built warehouse management capabilities. If a TMS does not have such a capability, businesses can combine the two software and allow them to work together in unison. The combination of a transportation and warehouse management software allows businesses to ensure warehouse productivity in addition to completing their freight responsibilities and requirements.
5. Transportation Management Software helps make Supply Chain Efficient
Transportation management software helps make the entire supply chain more efficient and helps improve productivity. This is essentially ensured due to the streamlining of logistics and delivery processes and effective warehouse management, that sets the pace for everything else to be right as it needs to be. Full visibility, transparency, and the ability of customers to be informed at all times ensures that the company’s overall operations are in order and that the supply chain is efficient.
While transportation and freight delivery may seem like simple tasks to an outsider, they are actually much more complicated. figuring out the shortest routes while ensuring stable packaging and minimum harm to products is pretty complicated. In addition to that, companies have to deal with tons of orders and rejects, and need to ensure that none of the orders get late or that the customer experience is not compromised or undermined in any possible way. A transportation management software ensures that the company can do its job well and that the customer is satisfied.