3 Key Processes Of Transportation Management System

Transportation Management Systems are really meant to increase the ROI and efficiency of your logistics company and has become a mandatory element for an effective logistics management. The transportation management system or TMS helps your make your logistics management more organized and accurate.

Transportation Management software are aimed at bringing down the time, cost and improved profit. If the time and cost taken are decreased, then there is no doubt that your profit would sour high. All you need to do is to learn to manage this amazing tool in the right way. If you are not managing TMS in the proper way then you cannot expect your business to improve.

Here I would like to talk about the 3 key processes of a transport management system, which have an influential role towards the success of your logistics business.

1) Planning and Decision Making
Planning and Decision making are the most essential parts of any successful organization and cannot be ignored at any cost. If the planning and decision making are not up to the mark, the business is sure to suffer. There have been many instances when many companies have vanished due to lack of proper planning and decision.

A transportation management solutions helps you to plan your logistics business effectively and categorize your transport schemes accordingly based on the importance as per user policy. Some of the major things that plays vital role in proper planning and decision making are transport cost, shorter lead-time, fewer stops, flows regrouping coefficient etc.

The TMS systems is also known as logistics management system and helps you to calculate your transportation cost and adjust your routes so as to experience a decrease in the transportation cost. It helps you to find out which routes yields you better profit margin and which are the stops that needs to be avoided without harming your profit ratio.

In the end the report generating facility offered by this vehicle management system helps you to analyze your logistics management in a much better way. You can even change the scheduling and routing of your vehicles for better results. The report helps you to plan better and make decisions based on that.

2) Customer follow-up
TMS helps you to experience a better customer relationship and follow up due to its enhanced features. One of the advanced feature that makes the tool stand out is the GPS vehicle tracking facility, which helps you to track your vehicle with the help of satellites. With this you would be able to inform your customers as where the vehicle is and when their goods would be delivered. It also helps in effective billing, accurate report generation, documentation etc, which makes your customers happy and satisfied.

3) Measurement
A transportation management system offers you a detailed and customized analytics report which would help you to understand your business in a much better way. The report would help you to find out the areas that needs improvements and also help where you stand when compared with the previous months. Certain reports helps you to drill down more deeper so as to get a better assessment regarding your vehicle routing software.

Amateurs Study Shipping Rates, Professionals Study Logistics

Omar Bradley offered a truism, that amateurs study tactics, armchair generals study strategy, and professionals study logistics. This is just as true in the world of business as it is in the military. Logistics is the art of getting supplies where they’re needed so other functions can happen. In the modern business world, logistics means freight shipping – both internally and externally. In this field, freight rates and carrier rates are the price of doing business.

Freight shipping is one of those expenses that can be minimized, but never totally eliminated. It’s also a manpower time sink, and because of this, more and more companies are outsourcing their freight needs to third party logistics companies. These are outfits that have people who do nothing but look over the assorted rates and package deals offered by the major freight carriers and try to find the best deal possible for their client, with a nice commission on top for them.

All in all, third party logistics management makes sense for organizations that are above a certain size (too small, and they don’t generate enough volume to be worth the trouble of maintaining the account) and below a certain size (at which point the company can have an inside staff that does the same function for less).

Alternatives to third party logistics offers are in house logistics software. Much the same way that travel agencies quickly became redundant with online booking services, logistics software vendors are trying to render the third party logistics company obsolete. Building automatic data scrapers that can do the basic work of comparing logistics rates to different parts of the country or world is fairly straightforward, as is a price search algorithm.

While these systems primarily offer a way to avoid third party logistics fees, they also offer a bit more direct control over your company’s shipping needs, and some managers and executives like that hands on feel. They can also be used to significantly automate a lot of routine functions in the shipping department and the mail room. They can also be used to identify process problems – there’s a saying that every time something was sent out overnight, someone higher up in the chain didn’t do their job correctly, and when you’re looking directly at the costs of expedited shipping, it becomes easier to focus on the process issues that lead to it, than when you’re looking at a third party statement of account.

Ultimately, which one works best is a function of your business’ needs and internal culture; some businesses simply don’t want to bring that job in house. Others need to. Both are viable strategies depending on what your operation’s needs truly are.

TL Logistics Management Software – Frequently Asked Questions

What types of Shippers Use TL Logistics Management Software?

In most cases, shipping companies that regularly produce enough products to fill a full semi trailer use truckload logistics software, as “TL” refers to truckload, or full semi trailer. However, it’s important to note that TL logistics software actually refers to a service option within logistics software as a whole. In other words, companies that have less than truckload (LTL) shipping needs and use logistics software to meet them can have a TL logistics option added to their package at a later date, particularly if their software operates on a software as a service (SaaS) model.

Does it Make Sense to Combine LTL and TL Management in the Same Package?

A company can have as many logistics management options within a software package as it wants. But the fact that more options result in higher fees usually deters companies from adding more options than they presently need. However, if a company can benefit from having its LTL shipments combined into TL shipments and transported to a break station, then having LTL and TL shipping options within the same package could be beneficial.

Is it Better to Implement Logistics Software on a SaaS or an Internal Basis?

Although some companies have policies that require software solutions to be implemented on internal basis, most companies receive the greatest benefit from implementing logistics software on a SaaS model. To implement the software on an internal basis, you typically incur the following costs, which are eliminated by SaaS: software purchase, hardware purchase, system maintenance fees and system upgrade costs. In addition, implementing logistics software as a web-based application offers the advantage of letting system users access the system from any Internet terminal worldwide, whereas internal solutions function like an intranet.

Can TL Logistics Management Software Replace the need for a Logistics Expert?

Perhaps the greatest misconception about logistics software is that you need expertise in logistics to use it. On the contrary, logistics-software does the work of a logistics expert, presenting a shipper with optimized shipping options across the entire shipping process. One of the main selling points of logistics-software is the remarkable affordability that it brings to the logistics function, which comes from its replacing the need to hire in house logistics experts or high level third party logistics (3PL) providers.

Isn’t 3PL the Still Best Option If You’d like to Dialogue With a Logistics Expert?

The top complaint of 3PL customers is that they feel kept on the outside of the shipping process due to lack of contact with their 3PL provider. Furthermore, most providers of logistics-software allow their customers the option discussing logistics issues whenever necessary. With logistics software, you essentially become your own logistics provider, which is as close to the logistics function as you can get.