Few innovations have had a more profound impact on the supply chain than the use of automation in advanced systems. As automation has grown to encompass the world of transportation management systems (TMS), more shippers have realized the potential of automation in TMS functions to improve performance, speed delivery, and reap a greater return on investment. Moreover, continuous advancements within artificial intelligence and machine learning have the capacity to radically shift how every organization operates, leveraging all freight modality and more. Shippers and logistics service providers need to understand why.
Why Failure to Automate Leaves Money on the Table
Failure to automate key functions within your supply chain will only cost more money. A 2014 Oracle report, published by Logistics Management, found shippers would see dramatic increases in shipping costs without a TMS:
The Strong Benefits of Automation in TMS
Automation in TMS is rapidly forcing shippers and companies across the landscape to implement an advanced, logistics management solution that can finally break down barriers and improve performance. According to FleetOwner Magazine, the prevalence of the use of a TMS in the freight market increased by 29% between 2005 and 2018. This amounts to 91% of trucking companies operating 20 trucks or more using the power of automation in TMS to improve performance and reap greater rewards. The trend is also evident among carriers operating fewer trucks.
Ways to Leverage an Automated TMS to Boost Customer Service and Inventory Management
- Deploying the TMS across your entire supply chain.
- Mandating compliance and use of the TMS in all transactions.
- Using application programming interfaces (APIs) or electronic data interchange (EDI) to seamlessly connect with the systems of other supply chain partners.
- Avoiding hassle in an onboarding process by choosing a TMS that automatically includes all previously onboarded carriers for access when bringing the system online.
- Taking advantage of artificial intelligence within the TMS to enable self-optimization and self-management of freight.
- Connecting email services to allow robotics process automation to continue improving customer service and handling the typical “exception” needs.
- Generating and sharing reports automatically to ensure all supply chain partners stay apprised of the situation and how they can best benefit from improved connectivity and automation.
