The TMS is one of the fastest growing enterprise application markets. In its most recent TMS Global Market Research Study, ARC Advisory group says that a whopping 63 percent of companies would see at least a 5 percent increase (23% stated a 10 percent or more increase) in total freight costs if they had to give up their TMS and revert to more manual transportation planning and execution processes. According to ARC, a TMS achieves these savings based on process enforcement, visibility, analytics, and optimization, with virtually no other supply chain solution offering so many different forms of optimization.
As the level of automation in TMS has risen, that statistic has undoubtedly increased, and the proof lies in the sheer increase in the volume of shippers and carriers using a modern, smart TMS to add value. Automated logistics processes have the ability to really accelerate execution and achieve higher productivity and value across the transportation network – especially in today’s disrupted environment.
TMS automation real value starts when it becomes an expert system
How to satisfy demands and constraints of goods with automation
Some loads are completely built while others are only partially built; then freight is added as more orders enter the system over the coming days. The tender process automatically tenders to the carrier(s) when appropriate. Should a carrier reject the tender, the system can automatically tender to subsequent carriers, including a digital freight carrier whose guaranteed rate automatically appears in line with the other rates at the appropriate rate position. As the freight continues through the process, if any exception occurs or is predicted to occur the user sees that exception on their dashboard and is directed to take the appropriate action if that action cannot be automatically executed. This is an extremely powerful way to execute an automated, predictable transportation plan.
How disruptions escalated automation process
Shippers are protecting themselves with guaranteed rates from digital freight partners to provide capacity on specific lanes when their normal carriers are unable to perform the moves. Procurement events are now building in digital freight providers to insulate the supply chain for periods of demand or restricted capacity and some even replacing traditional carrier networks with an all-digital alliance of providers.