Route Optimization and Freight Management: How a TMS Combines Both & Reduces Costs

Freight Management and Route Optimization - Combine and Reduce Costs

The inner workings of the shipping and transportation industry changed a lot over the last five to ten years as route optimization has become a primary focus for inventory and order shipping. The growth of supply chain TMS platforms and the big data they can provide to managers have transformed the transportation industry in unimaginable ways. Better shipping and logistical solutions have been embraced, leading to a better understanding of how every decision, practice, and step affects the supply chain end to end. Today it is evident with current trends that TMS solutions will rely heavily on real-time data analysis, machine learning, AI automation, and support tools that maximize route optimization processes.

Why Poor Route Optimization Contributes to Higher Freight Spend

Without a proper focus on systematic planning and maintaining an optimized process for shipping and transportation, delays become more prevalent and troublesome. These delays and problems lead to higher freight spend costs and wasted resources such as fuel and person-hours. Ineffective route optimization practices can directly increase freight spend in several surprising ways.

This is just the tip of the iceberg for what proper optimization can help avoid within a TMS governed network.

Using a TMS Combines Both Execution and Ongoing Route Optimization

Transportation management systems have a proven ROI. According to a report by Forbes, strategic planning and implementation of TMS platforms have also shown to help bring about freight savings of 8-10% overall. A well-implemented TMS can save companies money by streamlining transportation lanes, maximizing truckload capacity, and improving overall delivery success rates. The promise of machine learning, technology procurement, advanced automation, AI-guided tasks, and faster communications are all poised to allow a TMS to handle more complicated processes and functions better. This, in turn, reduces freight costs and spending, allows for greatly improved route optimizations, and expands freight management overall.

Calculate your potential Saving While Using an enterprise TMS

Additional Ways a TMS Improves Both Activities

Freight management and route optimization go hand in hand, with one feeding off the other. A well-implemented and maintained TMS brings benefits that are seen in several powerful ways:

Managing proper route optimization and freight management is easier with the right tools, and a sound TMS is the best place to get started.

Improve Your Route Optimization Efforts With a World-Class Enterprise TMS

Poor planning and optimization practices can directly increase freight spend and impact successful delivery statuses in many ways. The best way to reverse this effect is to begin the onboarding process of implementing TMS-supported technology. The growth of supply chain TMS platforms and the inclusions of real-time big-data analysis have transformed the industry in unique ways, and there is more growth yet to come.

Learn more about route optimization by getting a first hand demo of our TMS

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