Do you know that 25% of shipping companies still rely on manual methods to manage their core operations? Such agencies have two perspectives – either they are not well-informed about the benefits of using software for a transport company, or they don’t want to break their bank for just a simple application. If you agree with any of these thoughts, we can help you change your thought process about Transport Management Software. Let’s see what it is –
What is a Transportation Management System?
If you want to understand TMS easily, we must say it is a feature-rich application that helps you manage the processes of the movement and storage of freights. With TMS software at your disposal, you can handle and optimize all logistics and supply chain transportation activities.
Let’s see what the ultimate goals of using software for transport company are:
1. Enhances the efficiency of your shipping operations
2. Reduces your transportation expenses
3. Improves the visibility of all logistics operations
4. Upgrades your customer service
Now that you know what Transportation Management System is, it’s time to gain deeper insights into its functions.
Three Important Functions of Logistics Software
If you are running a goods transportation agency, you must know that scores of software for a transport company are on the market that helps you simplify your day-to-day tasks. For instance, ERP or Enterprise Resource Planning for transportation by road, rail, or air, and FFW and WMS for freight forwarding and warehouse management. Though these programs have plenty of unique features and functionalities, their primary functions are the same. Let’s understand all of those functions one by one:
Do you know what the best part of TMS software is? It is an excellent integration platform that allows several enterprise applications to connect. For example, you can combine warehouse management systems, customer relationship management, bookkeeping applications, order and purchasing management, and many more programs into a TMS application. Having so many resources in one place will help you plan the most suitable and cost-efficient transportation journey.
For completing each customer’s order, you can consider time, cost, distance, type of parcel, and the minimum number of stoppages required to deliver the order to its final destination. But all this is feasible only when you have a readily accessible transport management application with you. Once you have bought it, you can decide the optimal route for the transportation of your goods, plan the loading processes, and calculate the expenditure on the whole journey.
After the planning stage comes execution; in this stage, the transport management solutions allow you to track the shipment’s movement from one place to another with real-time updates. Every participant in the shipping journey, including drivers, carriers, managers, and customers, have the option to access the information related to customs clearance, freight traffic, automobile conditions, documents, accidents, and delays effortlessly.
Please take note that whenever you pick up goods from one place and drop them at another, you have to coordinate with several types of transportation service providers throughout the process, including customs, airport, and seaport administrators. Manually doing all this will consume a lot of your time and effort. But the moment you switch to reliable TMS software, you can automate all the document processing tasks and communicate easily with the participants.
After sifting through the planning and execution phase, comes the “Analysis” stage, where you check and observe the results. With TMS software, you can also see key performance indicators or KPIs such as cost per shipping unit, cost per mile, and delivery performance. Once you start leveraging this benefit, you can analyse the statistics, generate reports, and control your service quality.
Don’t forget that analytics and data-based reports are vitally instrumental for optimizing your shipping processes and making well-informed, efficiency-focused decisions down the line.
Who should buy Transportation Management Software?
4. Logistics service providers
5. E-commerce businesses
What are the benefits of using Logistics Software?
Once you have installed well-built transit software on your laptop, you can monitor your whole supply chain network since it provides you with all the essential information in one place. Additionally, if any of the members of your shipping team wants to access the desired information online, they can use this software, no matter they are in the eastern or western part of the world.
Another benefit of transport software is that you can automate manual processes. It means you can perform more tasks in less time without bringing more employees in-house.
3. Expense reduction
Besides that, a well-designed TMS application will also help you reduce the expenses on your shipping operations by eliminating human error and automating crucial tasks.
4. Improved service
If you constantly daydream about offering the best customer service, the TMS software can quickly help you achieve that goal. It enables you to generate shipping reports, analyze the various data, find errors, and make necessary changes to take your service quality to the next level.
The end remarks
We hope you now know the various functions of transport software and how it can simplify most of your shipping operations. So, if you want to buy transportation management software right away, contact a leading TMS software provider now.