Transportation Management Systems (TMS) offerings are popping up all over the place nowadays. From large world-class systems to small in-house BOL printing programs, a properly leveraged TMS can be a shipper’s best friend.
Simply put, a TMS is a software system designed to manage transportation operations (thanks wikipedia). A good third party warehousing and logistics provider will have this tool in their arsenal to provide real solutions to clients. Let’s look at some of the functions that a good Transportation Management System offers. More importantly, let’s see how leveraging one can enhance transportation operations and drive ROI.
TMS – The Basics
These core functions alone can create significant advantages for shippers. Having quick and accurate access to transportation rates allows for better forecasting and profit margin management. Online execution of shipments with built-in track and trace functionality gives companies visibility to what is happening in their supply chain, making it easier to meet customer demand. Proper utilization and management of these functions can turn those evil transportation costs into a profit center.
TMS as a Competitive Advantage
In order to really take advantage of TMS functions, companies would want to look further at how transportation affects their business and how it can become a competitive business advantage. Proper transportation management can truly turn a once clunky, “necessary evil” business process into a streamlined, ROI-driving machine. That said, here are some TMS functions that add real value to your business:
We have talked in previous posts about the advantages of outsourcing supply chain and logistics functions to a 3PL. The power of these TMS functions go hand in hand with network optimization, enhanced pricing leverage, system integration capabilities and synergized logistics services – all things a 3PL should offer.
To put it quite simply, 3PL + TMS = ROI
Follow this link to learn more about how Transportation Management functionality can enhance your business.
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