To utilize a TMS to your advantage, proper implementation is key. So is effective TMS integration. Without a smooth implementation process, seamless TMS integration, and a team there to guide you, it can cause a business to shut down overnight and scramble to get back up online.
A Forecast without Visibility
Brokers and shippers are up against high rates and increased variables:
- Unprecedented e-commerce growth: Now more than ever, the balance between efficiency and fulfillment is a daily struggle for most companies. An abundance in orders could have you scrambling to make fast shipments with less staff on hand. To meet customer demands, often meaning fast, two-day shipping without the high shipping costs, has become an issue many grapple with.
- Tightest capacity crunch in decades: Demand for capacity is at an all-time high. According to SupplyChainDive, FedEx and UPS raised rates by 5.9 percent in January 2022. However, this does not factor in the extra costs shippers could face from surcharges. Companies and suppliers must make large investments to secure capacity and adopt recent technologies that will drive efficiency and lower costs.
- Port congestion around the globe: Ports, factories, and shipping yards still face mayhem as we progress through 2022. The impact of COVID-19 still stands as many ports remain open and vessels continue to dock. Analysts and supply chain managers at Reuters emphasize congestion is building and some container ships are rerouting to avoid delays.
- Increasing fuel costs and surcharges: Rates have skyrocketed in the past several weeks alone, and we are now seeing all-time highs across the nation. FreightWaves charted the rise of diesel fuel back to the end of 2020. Since then, the average weekly price increased 30 percent year-over-year for all of 2021. Another cause of these soaring prices stems from Russia’s invasion of Ukraine, with prices nearly up 40 percent year-over-year to start 2022.
The Missing Link
TMS Benefits to look for:
1. Route efficiency planning and optimization
This will give you clarity behind operations, reduce any inefficiencies, and gain additional ROI on the capability placed in your TMS.
2. Vehicle load optimization
With the right software, you can plan effectively for specific load requirements that fit each vehicle you utilize.
3. Data collection, reports, and analysis
To plan for upcoming changes, understand current freight costs, and better prepare for the unexpected, it’s essential to use the data at your fingertips.
4. Freight negotiation and expense tracking
In today’s competitive market, negotiating freight rates comes with the added risk of losing opportunities altogether. An effective TMS helps you identify current rates to give you the ammunition needed to secure the best rate possible.
5. Scheme simulation
Before shipments are sent out, it is important to review the journey the load will undergo, ultimately providing you with a plan and idea of any possible issues that may arise.
6. Connection to a transportation network hub
Save time and money by easily connecting to customer carriers and trading partners for control and visibility.
7. Shipment tracking and tracing
Access to real-time updates ensures that shipments are moving and on their way to their destination. You gain visibility into potential delays to warn customers ahead of time.
8. Operational efficiency development
As the core standard of performance, being able to measure performance properly will make the most of available resources.
9. Minimize loss, damage, and errors
Modern TMS simultaneously handles operations to bring processes together for efficiency.
