And while the introduction and application of data to the supply chain can have a significant and far-reaching impact, it can also represent a new risk. Transportation data overload may occur, rendering its entire value-add meaningless. In other words, what good is the collection of your supply chain data if you don’t know what to do with it?
To stay competitive and reap the optimization benefits of smart, informed transportation data, shippers and logistics service providers need to understand how a TMS effectively enables data management.
Too Much Data Is Meaningless
A TMS Enables Data Management Through Analytics, Automation, and More
The use of a transportation management system (TMS) effectively pulls data into a single resource. Even when data is generated by other sources, such as a warehouse management system, integration between the warehouse management system and the TMS holds additional value.
That is the true nature of the supply chain, and an effective TMS considers the whole scope of the supply chain and its impact on transportation management needs. The value of a TMS as a data resource is expansive.
Applied across the immense global supply chain, the opportunities for freight management improvement through the use of transportation data are quite valuable.
Let’s take just a quick look at a few opportunities afforded by TMS data management:
- The ability to increase proactive management of freight from inbound logistics to last-mile delivery, including reverse logistics.
- The full automation of logistics management.
- The ability to validate package details and ensure shipments are loaded according to specifications and avoiding potential issues.
- Using GPS-enabled sensors to track shipment status and location and real-time.
- Rerouting shipments to avoid adverse weather events and potential traffic congestion.
- Determining whether the current freight spend aligns with the current strategy and how current projections may rival past discounts and open the door to new negotiating power with carriers to secure lower better rates.
- Centralized documentation and record-keeping functions to improve global compliance with trade measures and also improve freight claims management.
- Integrated functions to complete payment to carriers, third-party organizations, and other business-to-business partnerships upon successful tendering, delivery, or other specified actions for each shipment.
- Reducing total freight costs by using a carrier scorecard, utilizing carriers that meet budget requirements and adhere to their delivery times.
- Improving rate negotiations with carriers are based on carrier performance instead of anecdotes.
Tips for Reducing Transportation Data Overload
- Unify your supply chain under the same, cloud-based platform.
- Use data to make decisions based on facts, not an assumption.
- Gain supply chain visibility by collecting data in real-time.
- Leverage analytics to understand the past, present, and future of your logistics strategy.
- Use audits to highlight and address your weaknesses.
- Let a third-party handle the data management for you.
Improve Data Management With the Right TMS Now
It is possible to improve transportation data management and deploy a TMS in one sweep. Instead of trying to deploy an in-house TMS or manage data on your own, choose an expert in the field and industry.
It’s time to start thinking about your next TMS implementation and integration with your other systems. Increase the level of data management in your organization by partnering with MercuryGate.