TMS in Logistics: the Benefits and Value of Improving Workflow Automation
Transportation Management Systems (TMS) are a crucial component to the successful operation of any size business.
TMS uses technology to help businesses plan, execute, and optimize the logistics of incoming and outgoing goods. As part of an overall supply chain management system, a TMS aids in the negotiation of transportation rates and invoicing.
A quality TMS also ensures shipments are following all trade and shipping regulations and generates documentation to prove compliance.
The Benefits of a TMS
As of November 2019, 87 percent of all third-party logistic providers were using some form of a TMS, which is a marked increase from the roughly 30 percent using TMS a decade ago. “A good TMS is capable of effectively and efficiently managing key logistics functions like LTL and intermodal shipping, domestic and global transportation, and inbound and outbound operations,” said Michelle Kodrich, Note Logistics’ Senior Director of Global Logistics. “A TMS is crucial to managing and expanding a global supply chain by streamlining the entire process.”
From planning and procurement to logistics and lifecycle management, there are many benefits to using a TMS.
1. Improving customer service experience
A quality TMS provides analytics that can be used by your logistics team to record, analyze, and act on key performance indicators like damage rates and on-time deliveries. It also can help to identify problem transportation partners or in-house drivers, allowing for their replacement with higher-performing alternatives.
2. Improving the accuracy of logistics data
Integrating your TMS with warehouse management software (WMS) or enterprise resource planning systems (ERPs) reduces or eliminates the need for manual data entry, which reduces the occurrence of data-entry errors. It also increases supply chain efficiency by providing a detailed record of orders and tracking whether they are in the warehouse, in transit, or arriving at their destination.
3. Reducing freight expenses
A top-notch TMS uses analytics and optimization to generate suggestions for reducing freight expenses.
4. Tracking deliveries in real-time
Never wonder where your shipment is or when it will arrive again with a quality TMS. The ability to track a driver’s location and the status of the shipment in real-time is a major perk to using TMS. It increases customer satisfaction and helps root out issues with shipping before they become major headaches.
Choosing a TMS
Knowing that a TMS is a great investment and selecting one that works well to manage your business are two different things. Answering a few simple questions about how your business logistics are managed can help.
· How many monthly shipments does my company make?
· Are we operating out of multiple locations?
· How many modes of transportation are we currently using?
· How many monthly invoices do we audit?
“Once you have the answers to these questions, you can use them to set your goals,” said Kodrich. “Goals should center around the expected return on investment, whether you need the TMS to grow with your business, and how much you want to spend for subscription costs and implementation of the system.”
Intuitive TMS Available Through Note Logistics
In 2012, Note Logistics founder Steve Hurvitz partnered with Matthew Breuer to design an intuitive and functional TMS called My Freight Exchange. The creation of My Freight Exchange was born from a need with one of Hurvitz’s customers who was relying on manual print outs for purchase orders, which was inefficient and time consuming for all involved.
“Our TMS was able to save that client around $800,000 in one year by eliminating the need for rain checks and charging shippers back for failure to follow shipping directions,” said Hurvitz. “My Freight Exchange provides transparency with the carriers, the shipper, and the client. It was revolutionary when we created it and it is still one of the best TMS on the market today.
My Freight Exchange is customizable to meet individual client need, with a user-friendly interface. Hurvitz guarantees his TMS will save clients money and encouraged companies interested in saving on their global logistics costs to reach out to learn more.
Choose Note Logistics for all Your Logistics Needs
Note Logistics, in partnership with ST Freight, is your one-stop-shop for domestic and global logistics. Via air, sea, land, or rail, we have all your transportation needs covered.
Since 1990, Note Logistics has provided superior freight logistics solutions to our valuable customers. Our partnership with ST Freight provides our clients with exclusive access to manufacturers, wholesalers, and retailers for a competitive edge in receiving optimal transport management. Our advanced strategies, implementation of the latest logistics technology, and results-oriented services combine to help shippers improve safety, service, and financial performance.
Companies choose Note Logistics for their ability to:
· Reduce and control operating costs
· Enhance operational efficiencies
· Improve company focus by eliminating the need for shipping personnel
· Gain access to work-class logistics capabilities
· Release internal resources and capital for other purposes
· Mitigate spiraling payroll costs by eliminating the need for multiple personnel to manage shipping
· Use a partnership approach to freight management to save 20–25 percent on shipping charges
Reach out to Ms. Kodrich at 609–505–7242 or via email at mkodrich@stfreight.com to learn more about how we can help improve your national and global logistics experience.
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About the Author
Shari L. Berg is the Director of Marketing and Communications for Note Logistics. You can reach Shari here.
