The Role of a TMS in Data Utilization

Transportation management technology helps collect and convert TMS data into actionable information to support improved performance.
Transportation management systems (TMS) are a critical component of supply chain optimization in many industries, from retail to manufacturing.

With the right technology solution, companies can leverage TMS data to reduce the time and cost spent on transporting goods while increasing the visibility of their supply chain. Data-driven transportation management systems provide organizations with the insights and capabilities to optimize logistics processes.

This blog explores how advanced TMS data analytics deliver a comprehensive view of the supply chain to guide better decision-making and long-term strategies.

Role of a TMS in Data Utilization

A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both incoming and outgoing.

TMS platforms collect data to provide visibility into day-to-day transportation operations, trade compliance information and documentation, and the timely delivery of goods. Transportation management systems also streamline the shipping process and make it easier for businesses to manage and optimize their complex multimodal transportation networks.

Transportation management systems play a central role in supply chains and provide benefits at every step of the process. As TMS performance continues to improve in 2023 across the supply chain, those benefits include:

  • Reducing costs for the business and the end customer.
  • Simplifying supply chain processes across geographies, modes, and carriers.
  • Automating business operations for improved efficiency.
  • Improving visibility and security, especially in transit.
  • Tracking freight, both locally and globally, on a single platform.
  • Optimizing import and export compliance to minimize penalties and shipment delays.
  • Identifying new business insights through advanced data analytics and reporting.
Technology provides the ability to centralize TMS data into a single resource hub by integrating data from previously disparate systems, like warehouse management systems and ERPs.

TMS data is a supply chain source of truth and helps guide transportation management strategies and decisions. With TMS-level visibility, companies can proactively manage freight from inbound logistics to last-mile delivery and everything in between.

How to Utilize Transportation Data

Transportation data is essential to supply chain optimization, but how should data be utilized to provide the most benefit?
Drive Better Decision Making
Transportation data is an invaluable tool for supply chain decision-making. With the right data, companies can make informed decisions about how to manage multimodal transportation networks best.
Utilizing TMS data can help companies identify potential inefficiencies in their network, reduce costs, and optimize the flow of goods. This data can also help companies identify trends in the market and adjust their strategies accordingly.
Transportation data allows companies to track the movement of goods in real time, improving visibility and providing the opportunity to identify and manage exceptions as they occur. This is particularly useful in last-mile delivery, where even minor disruptions in traffic or weather can have devastating impacts on delivery schedules and customer satisfaction.

Utilizing TMS data to inform dynamic routing engines provides an additional layer of protection against real-time disruption by automatically rerouting shipments to match the most efficient route for that given time and circumstance.

Automate Processes for Operational Efficiency
Enabling automation within the supply chain carries significant benefits and opportunities for greater operational efficiency.
Simply put, organizations maximize profits when they reduce operational costs, free up team members’ time and talents, and utilize more efficient data management. Logistics managers rely on data-driven automation technology to eliminate tedious tasks, so their teams can focus on strategic goals and revenue-generating activities.
More Strategic Thinking
Transportation data is an invaluable tool for supply chain strategy, both in the short and long terms.

With access to real-time transportation data, companies can quickly and accurately anticipate market changes and pivot their supply chain strategy accordingly. In the short term, TMS data can be used to optimize routes and freight rates by utilizing predictive analytics to forecast future market trends.

In the long term, transportation data can proactively manage and optimize supply chain operations. Furthermore, data provides the ability to scenario plan and anticipate how market changes may impact the supply chain – allowing teams to develop strategies that insulate them from future disruption.

Calculate your potential Saving While Using an enterprise TMS

Get the Most Out of TMS Data Utilization with the Right Technology

Effective TMS data utilization is critical with increasing pressure on organizations to increase supply chain efficiencies, reduce costs, and minimize carbon footprints.

Timely, accurate, and secure TMS data is essential to meeting modern supply chain objectives – transportation management systems provide the advanced data solutions needed to deliver results and optimize logistics networks.

MercuryGate TMS gives your company access to the data you need to move your business forward. To learn more about the benefits of utilizing TMS-driven data to make more informed decisions, streamline operational processes, and drive strategic initiatives, download our eBook.

Learn more about the use of TMS data for Smarter Transportation.

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