In addition to planning, transportation management systems also provide data that aids in the execution of logistics processes. TMS provides tools to optimize the shipping process by providing data on critical factors, such as transit time, service level, and cost. Using TMS, business owners can choose the best carriers and routes for shipments, size loads, and redirect orders. The system also helps optimize carrier resources and streamlines the process by planning multileg trips to reduce fuel and labor costs.
Most robust transportation management systems provide reporting and in-depth insights. For example, suppose a transportation manager oversees the shipping process for 20 locations, sending five shipments weekly. This means evaluating and creating 100 shipping invoices each week. Using a TMS, all of this information can be stored in one location and analyzed through custom reports. If rates for the same shipments are different than those of final invoices, the transportation manager can run a custom report to determine why the differences are occurring.
Modern transportation management systems can automate tasks like dock scheduling, dock booking, and load sequencing. By leveraging advanced analytics, TMS solutions can optimize routing and shipping modes, reducing fuel consumption and improving profitability. They can also adapt to changes in transportation demand. Other technologies such as chatbots and blockchain can enhance the efficiency of the TMS. These new technologies can help businesses thrive in the logistics industry. If you’re considering TMS solutions for your company, read on!