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Why implement a Transportation Management System or TMS?

Thursday September 09, 2021

One of the first steps that many companies within the industry took to start their digital transformation was implementing a Transportation Management System (TMS). But apart from implementing it, companies need to understand why it's important, why it's become a must-have, and how it benefits the overall operation.  

What is a Transportation Management System?  

A Transportation Management System is a platform used in logistics that helps companies streamline the freight transportation process through technology. It allows companies to plan, deliver, and at the end of the process, optimize any areas of improvement, which become evident thanks to the visibility the TMS provides. The TMS also allows you to manage the documentation required for your shipment to be compliant. Usually, a TMS is part of a more extensive system used in companies for their entire supply chain management.   

Why is it essential to have a good Transportation Management System in place?  

 As mentioned before, a TMS is an essential asset to streamline the entire transportation process, but additionally, these are some of the main benefits a TMS can bring your business.  

  • Increased Visibility  

Companies can have complete transparency on their TMS since they can track real-time their freight transportation process. They'll be able to see where their freight is and what the estimated time of arrival is. Having access to this data allows companies to quickly answer any issues during the transportation process and provide accurate information to customers about their freight.  

  • Route planning and optimization  

Having complete visibility of the routes your trucks are using and real-time information about how the process is flowing, you'll be able to plan and optimize routes efficiently. Using the accuracy of the data delivered on your TMS allows you to change the courses if necessary to earn some time or meet the established deadlines. For instance, if there's a route with constant traffic jams, it's best to change it out to another one that may be longer but does not have much traffic, allowing you to deliver the freight faster.  

By tweaking and changing your routes constantly, based on data, you'll be able to deliver your freight on time and increase customer satisfaction.   

  • Easy access to Documentation  

One of the most critical parts of the transportation process is having all your documentation available to avoid inefficiencies and setbacks. With a TMS, you have a platform where you'll be able to organize and manage all the required documentation. Instead of searching through different platforms, you'll be able to centralize the information on your TMS and avoid wasting time.  

  • Customer service  

With a TMS, you gain access to data and relevant information that helps you provide better services to your clients. Having real-time tracking allows you to give your clients accurate data on where their freight is at any moment and when their cargo will arrive. Providing this information on the spot increases your customer's trust and helps you become more reliable and accountable.   

Also, with increased visibility, you'll know your areas of improvement, which ultimately will help you provide better services for your clients. Having quicker responses to any issues and delivering on time and with complete integrity creates a better work bond with your customers, increasing the chances of working with you again.   

  

There are many other benefits of implementing a transportation management system like time savings, efficiency, accuracy. In general terms, a TMS helps your business become more organized by having everything available in one place. When transporting freight, tracking your shipment in real time, having a centralized information platform, and constantly optimizing your processes are fundamental elements that provide reliability and accountability. Having all these elements in place improves your customer's experience and allows them to trust your company.   

 

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