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 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.
This blog answers, “how does a TMS system work to improve productivity?” Let’s examine how a TMS helps you strategically approach cost control in your supply chain by maximizing labor resources using automation.
Driving Productivity Through a TMS
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.
How Does a TMS System Work to Reduce Supply Chain and Labor Costs
- 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.
How Does a TMS Work to Deliver Value in the Real World?
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.
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.
How Does A MercuryGate TMS Work to Deliver a System of Excellence?
As your business evolves and seeks competitive advantages in an increasingly challenging market, adopting systems like MercuryGate’s TMS becomes imperative. To delve deeper into how does a TMS deliver tangible benefits, explore our case study of Trachte Building Systems. It helps provide more details round the real-world savings and efficiencies your business can achieve.