All businesses rely heavily on numerous vital activities, one of the topmost being transportation and shipping. Without transportation, different enterprises would be unable to move goods and materials from their production point to the consumers. If your business incorporates shipping in its operations, you are already aware of the challenges prevalent in this industry, including delays and port congestions. Fortunately, you can optimize operations using transportation management systems.
What Is a Transportation Management System?
Transportation management systems (TMS) are logistic platforms that help organizations plan, kick-start, and enhance the movement of incoming and outgoing materials and products. A TMS also helps you ensure a particular shipment is compliant and all the necessary documentation is at your disposal. Generally, any party or entity that needs to coordinate shipping, be it a distributor, shipping company, third-party logistics provider (3PLs), or manufacturer, can use a transport management system.
Why Are Transport Management Systems Essential?
Your enterprise needs a transport management system for the following reasons:
1. Access to real-time data
Besides shipping, transportation management solutions come with TMS control towers. These are communication, reporting, and visibility tools designed to make logistics more effective. TMS towers are vital as they provide real-time data concerning shipments. The metrics included in tower reports include weather risks and temperature, mainly involving weather-sensitive loads. Data capturing in TMS control towers is made possible by Electronic Data Interchange and Application Programming Interface (EPI and API) technologies. Your business can use the real-time data provided by TMS solutions to eradicate transportation issues like inaccurate client updates and to build a timetable that allows you and your customer to have up-to-date statuses.
2. Reduced costs
If you want a planning system that won't empty your company's coffers, try one of the available cost-efficient transportation management systems. Such a tool can help you cut costs in many ways, including choosing the most suitable carrier for transportation needs. A good carrier is indispensable for protecting and safeguarding goods in transit. Moreover, a TMS solution assesses different routes and selects one likely to consume less fuel and time. That means these systems make operations quicker and more efficient. And the lower your expenses, the lesser the costs transferred to clients.
3. Tracking freight
A transport management solution allows you to use a single platform to track your shipment globally and locally. That, in turn, helps you provide customers with accurate information quickly. By facilitating that, TMS systems boost customer satisfaction and enable you to cut losses associated with delayed deliveries, stolen products, and, subsequently, unhappy or unsatisfied customers. Not to forget, real-time freight tracking makes your organization stand out from the competition.
Contact a company like JB Shipments to learn more.