Transportation management systems (TMS) are a critical component of supply chain optimization in many industries, from retail to manufacturing. But what is the function of TMS when it comes to your transportation data?
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.
The Function of TMS in Data Utilization
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 the function of TMS 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.
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
Drive Better Decision Making
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
More Strategic Thinking
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.
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.
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.