How Does a TMS System Work to Improve Productivity?

This blog is intended to answer the question: How does a TMS System work to improve productivity?

The question arises frequently when labor costs – including wages, benefits, and associated taxes – account for up to 70% of total business expenses. Those costs are on the rise as many companies anticipate an average pay increase of 4.1% in 2023.

In the supply chain, labor costs associated with logistics and transportation functions substantially increase pressure on already inflated freight and transportation budgets.
Sound familiar?

In the face of soaring expenses, the transportation management system (TMS) is an indispensable asset. A TMS empowers logistics managers to automate and streamline daily transportation workflows, ensuring that goods are transported in the most cost-effective and efficient manner.

Let’s examine how a TMS system does work by applying a strategic approach to cost control by maximizing labor resources using automation.

Driving Productivity Through a TMS

The integration of TMS automation in your supply chain ushers in new avenues for optimization.

Using robust and accurate data, a TMS facilitates informed decision-making for logistics teams and reduces the burden of manual transportation tasks that hinder productivity. Among its strengths, a TMS automates common tasks like documentation and invoicing. As a result, you minimize manual errors and afford logistics teams the capacity to focus on strategic endeavors.
A TMS offers functionalities beyond mere task automation.

It brings sophistication to routing by eliminating tedious manual planning and selecting the most efficient shipment routes based on distance, traffic, fuel consumption, and consolidation opportunities. This system delivers clear, real-time logistics visibility, reducing the need for manual check calls and enabling proactive issue resolution.

Additionally, a TMS is designed for growth – as a business expands and volumes increase, the TMS seamlessly adapts, maintaining operational excellence without requiring more resources.

How Does a TMS System Work to Reduce Supply Chain & Labor Costs

Supply chain costs are determined by multiple variables and often fluctuate with market dynamics and organizational needs. A TMS provides clarity and precision in navigating these complexities, pinpointing areas of potential savings. This is achieved through several critical pathways:
  • Carrier Rate Comparison: A TMS utilizes dynamic rating engines to analyze and compare rates and services across the carrier network to find the most cost-effective options.
  • Automated Processes & Workflows: By leveraging automation in transportation with dynamic workflows, organizations can adapt to customer demand and shifting market dynamics to ensure operational continuity.
  • Auditing and Payment Processes: A TMS streamlines invoice audit and payment processes to prevent costly overpayments or duplicate transactions.
  • Reduced Errors: TMS automation reduces errors in ordering, billing, shipping, and inventory management, preventing substantial financial losses.
  • Lowered Expedited Shipping Costs: Improved planning and scheduling through a TMS reduces the need for last-minute expedited shipments that cost more than regular shipments.

In supply chain management, where costs easily spiral out of control, a TMS acts as both a safeguard and a strategist. 

How does a TMS work? It helps you identify potential savings and ensure that you seize available opportunities to drive bottom-line benefits.

How Does a TMS Work to Deliver Value in the Real World?

MercuryGate’s TMS sets the gold standard in supply chain management, driving efficiency across multiple fronts.

Our freight claims management solution, MercuryMyEZClaim, saves companies time and overhead costs. Key features enable you to:

  • Automate labor-intensive activities.
  • Consolidate documentation on a single platform.
  • Streamline communications.
  • Prevent manual errors in data handling.
Beyond basic freight claims, MercuryMyEZClaim facilitates the management of a wide range of claim types, including loss, damage, overcharge, vendor, and OS&D claims. Moreover, the solution provides analytics capabilities that allow you to discern claim trends, fine-tune your Standard Operating Procedures (SOPs), and eliminate information bottlenecks.

The MercuryMyEZClaim provides tangible benefits including:

  • 55% reduction in claims processing time.
  • 77% reduction in open claims.
  • 60% reallocation of staff focused on claims.
  • 50% reduction in claim losses YoY by identifying the root cause.
  • Improved recoveries upwards of $500k within the first 6 months.

Calculate your potential Saving While Using an enterprise TMS

How Does A MercuryGate TMS Work to Deliver a System of Excellence?

The supply chain is experiencing a transformative shift, driven by advanced technology and TMS solutions. Integrating a TMS is no longer a luxury but rather an essential mechanism to optimize productivity, streamline operations, and most critically, curtail rising supply chain and labor costs.
The expansive offerings of MercuryGate, from freight claims automation to comprehensive transportation workflows, underscore the profound impacts a robust TMS can bring to an organization.

As your business evolves and seeks competitive advantages in an increasingly challenging market, adopting systems like MercuryGate’s TMS becomes imperative. 

Delve deeper into how does a TMS work to deliver tangible benefits. Read our case study of Trachte Building Systems. It helps provide more details round the real-world savings and efficiencies your business can achieve.

Learn how TMS alleviated our customer’s manual processes.


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