Corporate responsibility depends on the successful execution of transportation processes, careful inventory management, and the delicate understanding of customer needs.
As explained by Deloitte, corporate livelihood depends on efficiency and accuracy in transportation management. Freight tonnage is expected to grow 27% by 2027, so gaining control over transportation total cost of ownership is now paramount for shippers.
Total Cost of Ownership
A TMS Lowers Transportation Total Cost of Ownership
Best Practices for Deploying Your TMS to Keep TCO in Check
- Recognize trends within the industry and implement processes within the TMS to leave room for customized workflow management.
- Leverage the latest technology to track and manage shipments, utilizing algorithms, and big data analytics to understand how reroutes and changes to loads will impact profitability and customer experiences.
- Take advantage of vendor-provided training and resources to encourage the adoption of a TMS throughout your entire enterprise.
- Use key performance indicators (KPIs) and metrics to enable around-the-clock planning and management of freight.
- Connect assets within your organization to the Internet of Things (IOT), enabling the tracking and aggregation of the real-time data.
- Eliminate uncertainty with the use of a cloud-based TMS, putting the responsibility of managing the system and ensuring its optimum performance in the hands of a third party, such as MercuryGate.
- Never spend the full transportation budget at once, allowing for flexibility to handle changes in shipment details, schedule fluctuations, variations in the forecast, and more.
- Consider the indirect cost savings from TMS implementation too, such as increased employee retention, reduced customer complaints, and lower carrying costs.