Why Transport Need a Transport Management System

With the change in people and the need to keep up with the fast growing pace, no one has time to wait for those who can’t communicate or be clear with their work. In this era of technology and the internet people need real time updates on their work. We have seen an immense growth in ecommerce and global trade. People prefer buying things online the most these days due to availability of wide range options and to-door delivery. With many options like same day delivery, free shipping and real time tracking makes the customer not just happy but builds trust in them. 

The customers always have high expectations from their seller and they want what others are offering but from you, and with increase in freight costs, storage issues and complexity in the management. To keep up with latest trends and technology the company needs to keep upgrading its logistic management and keep on reducing the transportation cost. 

If you try to find the meaning of a transport management system the websites and TMS vendors give many different definitions but the basic and simplest form is it helps the companies have a  systematic, efficient and automated process. The software helps to plan, execute and manage all the operations at one place in an efficient and cost effective way. 

WHY DO YOU NEED TRANSPORTING A MANAGEMENT SYSTEM?

A TMS and logistic management system is one of the essential weapons of the company which can help the company to increase their efficiency, reduce the cost, and increase their customer satisfaction. Though the cost saving process will be slow at the beginning but it will eventually leave a great impact on your business. 

1. IMPROVED CASH FLOW

A good and efficient transport management system will help you reduce your shipping cost and freight charges. The right system will  help you analyze every financial aspect of your route. It will suggest user oriented routes to reduce expenses by reducing fuel consumption and reducing driver overtime. 

2. INTEGRATED PLANNING AND EXECUTION

The latest models of software of TMS can easily integrate with other existing applications which are necessary for smooth working of your transport . 

 Which includes 

• Purchasing and order management system 
• Warehouse management 
• Customer relationship 
• Supplier relationship 
  

With these integration the company can easily execute orders in a very cost effective way. It helps the company in finding a better route and load optimization. If said in basic words it helps in faster and quicker transportation. 

3. MINIMAL PAPERWORK 

Automation of these work can help you save so much manual work and paperwork make the work run more smoothly and effectively. The valuable time and money can be saved by choosing the right management system. Mistakes like wrong invoices or billings can be avoided and the efficiency can be increased. 

4. INVENTORY MANAGEMENT

The software manages and monitors the life cycle of inventory and shipments with real time tracking. With this the managers can easily predict the inventory and help improve the accountability of the supply chain. 

5. SUPPLY CHAIN MANAGEMENT 

The integration of the software with the supply chain can help you have a clear vision with the supply management, having real time data all the time can help you work effectively, and with the cloud based software it helps to have the data from all the systems. 

6. OPTIMIZED ROUTING THROUGH POOL DISTRIBUTION 

With shrunken shipment days the route optimisation has become very essential. The TMS helps in pool distribution which helps in quicker delivery with a clear visibility. The optimisation helps in points out which shipments should be wicked and delivered when and the complex deliveries are broken down into parts. 

7. TRACKING DRIVERS EN ROUTE 

Tracking the drivers can help both the customers and managers to track the real time location of drivers, and it even works in favor of drivers in case of accidents or genuine delay in delivery. This can even help to have a better schedule of drivers and can help you have an assessment of individual drivers easily, even the user can rate them according to their efficiency. 

8. ACCURATE ORDER FULFILLMENT

With the right TMS the order fulfillment can be increased due to route optimization, supply chain visibility, and real time tracking. The errors in shipping can be easily avoided and any queries raised by customers can easily be solved without leaving a negative impact. 

9. IMPROVING CUSTOMER EXPERIENCE  

Customers these days need real fast delivery, last minute change in orders and customized delivery times. These things they don’t demand, they expect these things. To meet customers' expectations is the real challenge for the business. TMS will be the bridge between order and warehouse management. This will help the customer to find all the orders at the same place with low carrier cost. 

10. IMPROVE BUSINESS AND REFERRALS

An effective TMS will help the company enhance their productivity and efficiency. The main goal of the company is to get their customers again and again, and if you wish the same, a right TMS can help you get this wish fulfilled. An improved customer service will help you get mouth to mouth referrals too. 

For multi purpose business, the shipping cost can even suppress some of the direct and indirect utilities. Whether a company needs a complex logistic management or a simple transportation needs. Though the need of TMS depends on the company’s requirement and need. The buyer should go through many different software before choosing the right one for your company. Today’s TMS are relatively cost effective and every company dealing with transportation needs an effective