Why a TMS Works for Managed Transportation Providers

Managed transportation support from third-party logistics providers are enhanced by a Transportation Management System (TMS) that delivers streamlined operation and improved performance.

Managed transportation relies on 3PL providers to create an enhanced logistics strategy. These third-party logistics supporters help a company optimize its logistics, supply chain efficiency, and transportation operations.

The third party takes care of freight and logistics services that could include rate management, freight audits, procurement, and other managed transportation services.

A transportation management system (TMS) supports the management of logistics. It helps businesses and partners better plan out and carry out the shipment of goods. A TMS supports process optimization and the coordination and communication between different parties. As a result, a TMS improves the managed transportation services a 3PL can offer.

The Need for a TMS in Managed Transportation Services

Managed transportation services involve complex tasks. Providers in this area can be involved in entire logistics strategies and supply chains. This includes coordinating many working parts, adjusting to problems, and carrying out effective communication between various parties that are part of the process. It is challenging to handle complex aspects of managed transportation while providing top-tier delivery and customer service.
However, technology can provide support for managed transportation services. A TMS helps 3PLs address the complexities of managed transportation in a streamlined way. It brings together the many components of logistics into one system that makes it easier to manage everything in a cohesive fashion.

A TMS and managed transportation providers work together toward the needs and goals of a company because the TMS enables a provider to consolidate data, create a better transportation network, optimize processes, and more..

11 TMS Benefits for Managed Transportation Providers

A transportation management system offers specific benefits to managed transportation providers and thus to the companies they contract with, including:

  • Consolidation of Freight: Optimize the process of consolidating freight, which creates better efficiency and therefore cost savings, through the use of a TMS.
  • Optimized Resource Management: Allocate resources efficiently and carry out strategic planning with a TMS. It aids in the planning of both inbound and outbound shipments.
  • Improved KPIs: Easily track KPIs in one place with the TMS, which then helps you improve these KPIs. For example, the TMS allows you to track the cost per shipment, shipment speed, and the efficiency of vendor fuel and use of warehouse space. Track the frequency of lost or damaged shipments, and late pickups and deliveries.
  • Increase in Cash Flow: Reduce the order-to-cash timeframe by using a TMS to manage accurate planning, faster shipments, and improved invoice management, which all contribute to better cash flow.
  • Enhanced Visibility: Gain real-time visibility into the transportation process with the TMS. Improved visibility allows providers to watch the movement of goods, identify when there are bottlenecks and inefficiencies, and intervene or better manage the process.
  • Improved Customer Service: Track and deliver shipments better, and provide customers with shipment status updates and alerts. These benefits create improved customer satisfaction.
  • Scalability: Keep up with an increased volume of shipments and more complex logistics operations, as a TMS can easily scale along with business growth and complexity.
  • Compliance Management: Ensure compliance with customs, trade regulations, and environmental standards with the help of the TMS. Keeping up with regulations is crucial for companies operating internationally.
  • Improved Decision Making: Use the detailed data and analytics the TMS provides to make more informed decisions on route optimization, vendor selection, cost control, and other important areas.
  • Inventory Management: Manage inventory better with the accurate delivery predictions a TMS can provide. This information helps to reduce stock levels and associated costs.
  • Sustainability: Optimize routes and reduce the amount of required shipments to operate more sustainably by reducing fuel consumption and CO2 emissions.

Calculate your potential Saving While Using an enterprise TMS

Combine the Benefits of Managed Transportation and a TMS

A TMS supports managed transportation service providers in carrying out their role. It provides an array of benefits for these providers, some of the top ones being consolidating freight, increasing cash flow, optimizing resource management, and tracking and improving important KPIs.

Managed service providers achieve the best service possible in transportation with the help of the right TMS. Demo MercuryGate’s TMS for managed transportation to take a deeper dive into the many ways it could benefit and support the services you offer.

Learn more about how MercuryGate TMS helps 3PLs.


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