The Top Benefits of Automation in a TMS

Benefits Automation TMS

The need for automation within the supply chain is omnipresent. 

According to a Visual Capitalist report, up to 61% of supply chain professionals expect capacity requirements to increase over the next year, and automated technologies are on track to become a major force in the market by 2023. Roughly half of warehouse and distribution center managers expect to continue using manual processes in order fulfillment, but 50% of large global companies are turning their sites toward automation as the primary means of supply chain operations by 2023. Furthermore, 30% of warehouse workers will be augmented with collaborative robots by 2023. Clearly, automation is a go-to technology, and when applied to a transportation management system (TMS), the value of TMS automation grows immensely. Supply chain leaders need to understand the top benefits of TMS automations and how they can add value immediately.

Benefits of TMS Automation Include Improved Supply Chain Collaboration

The most obvious benefits of TMS automation involve the ability to work within your supply chain and maximize both transportation visibility and collaboration. Instead of relying on your workers to manually enter data and share information, technology integrations that promote automation can seamlessly populate data across multiple systems. As a result, information is consistent and accessible to everyone across the organization, enabling more proactive and data-driven decisions that can help reduce disruption and risk, while also facilitating more positive customer experiences.

Automation Reduces the Work of Managing Complex Supply Chains

Since the supply chain seems to only be growing in terms of complexity, additional benefits of TMS automations will revolve around simplifying complex supply-chain operations.
According to Material Handling & Logistics, “TMS solutions have been present as a part of supply chain management (SCM) for years and are used across many market verticals, including retail, automotive, pharmaceuticals, and food products. The TMS market is a strategic enabler of the supply chain, with numerous established companies eyeing potential acquisitions to bolster cloud, geographic, and modal coverage. This will create a significant opportunity over the next five years to use cloud platforms to level the playing field for small- to medium-sized businesses (SMBs) as well as diversify and extend businesses initially built for ERP, SCM and telematics markets.”
In other words, small businesses can enter the market with a viable competitive advantage against existing, larger players, essentially enabling, smaller organizations to do more with less, reducing reliance on manual workforces.

Automation Goes Together With Cloud-Based Resources

Cloud-based resources are also aligned with the ability to automate supply chain processes. Since cloud-based resources allow for limitless scalability and continuous access to systems around the globe, 24/7, the opportunity to reap the benefits of TMS automations grows exponentially when considering global transportation networks.
“A further shift away from on-premise, high-investment, and lengthy training/upgrade cycles will continue to ramp toward cloud-based, scalable as-a-service models, with cloud-hosted platforms expected to begin to surpass those of on-premise adoption by next year and exceed 70% of the market by 2022.”

Streamlined, Automated Processes Enable Competitive Advantage

The benefits of TMS automation also includes more streamlined operations management, which positions organizations for a greater competitive advantage through higher customer retention rates. Essentially, as customer experiences improve, profitability increases. This creates additional opportunities to scale operations and remain competitive.. As reported by Supply Chain Game Changer, companies across the board are moving toward more automation in transportation management.

Intelligent Systems Eliminate Risk of Errors During Data Sharing

Since the benefits of TMS automations include the seamless sharing of data, another indirect benefit exists. Instead of hoping that information is correct, automations ensure accuracy. This reduces the amount of rework and improves efficiencies. Put the power of TMS automations to work in your enterprise now. The benefits of TMS automations in the supply chain are too great to ignore.

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