4 Ways a TMS Provides Supply Chain Resilience

TMS Supply Chain Resilience

Supply chain resilience describes how well and how quickly an organization can return to pre-disruption operational levels when uncertainty or disruption impacts the supply chain. Any disruption can test a supply chain’s resilience, and a large degree of resilience lies in agile processes and responsiveness, especially during peak seasons and so-called black swan events, which are characterized as unpredictable occurrences that can have potentially severe consequences. Resilient supply chains provide protection from uncertainty by effectively taking steps to account for any possible deviation in standard operations. Consider these top four ways the use of a transportation management system (TMS) provides supply chain resilience.

1. Increased Responsiveness Enables Supply Chain Resilience

The use of a TMS improves supply chain responsiveness by providing more accountability and visibility into daily operations. Since fewer manual tasks reduce delays in processing, customers get their orders faster. Such gains also strengthen supply chain performance. Automation within a TMS goes a long way in reducing delays in processing orders and securing capacity faster. These are critical concerns in mitigating disruptions.

2. Reduced Freight Costs Help Allocate Funds for Investments to Maximize Profitability and Efficiency

Utilization of an enterprise TMS reduces freight costs. Any savings in freight costs improve the bottom line and frees resources for additional investment in the supply chain. Simplified operations reduce the risk of delays while also speeding delivery.
Fewer complexities in using a TMS contribute to faster handling and rating behind the scenes, helping your team move more freight and build stronger relationships with customers.

3. Centralized Logistics Management Transcends Geographic Restrictions

Centralized collaboration and communications through a TMS also reduce barriers to freight management and more. Moreover, increased transparency further increases supply chain responsiveness. More responsiveness builds better business relationships. As explained by Garrett Applegate of Supply Chain Brain:

“The implementation of transportation management system (TMS) software enables companies to better manage the movement of their goods from one location to another. Once this process begins, the TMS can afford companies visibility over their entire supply chains and allows for clearer detection of where goods are currently located. Stakeholders can use the data to oversee broader trends within the supply chain, develop better techniques for managing suppliers and transportation providers, and reduce overall logistics spend. The proper use of a TMS allows for the enhancement of key business functions. Supply-chain teams can closely monitor spend and become more proactive in managing it.”

4. TMS Deployment Generates Data to Measure and Improve Supply Chain Resilience

Centralized portals for suppliers, vendors, and customers increase collaboration and boost service levels. Easier-to-use systems make diversification of carriers and suppliers simpler. Increased insight through analytics promotes contingency planning for supply chain shocks. In today’s age, data is power and helps managers understand what needs to happen to drive maximum efficiency and return on investment for implementing a TMS.

Increase Your Supply Chain Resilience With the MercuryGate Transportation Management Platform

Supply chain resilience ties into responsiveness, maintaining lean inventory strategies and keeps freight spend under control. Shippers and logistics service providers (LSPs) need to increase supply chain agility and resilience to survive the disruptions of the present and future. Fortunately, MercuryGate can help achieve that goal.

Get started by requesting a demo of the MercuryGate platform today.

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