As companies strive to enhance their resilience in the face of present and future disruptions, leveraging the best TMS system to navigate the intricate world of logistics emerges as an essential solution.
This blog explores why the best transportation management system (TMS) capabilities are critical within your transportation software stack.
How Market Conditions Influence Your Transportation Software Decision
The old “badge of honor” for fixing avoidable problems has given way to a new accolade: building resilient, agile, and cost-effective supply chains that can withstand the unpredictable nature of today’s market conditions.
- Market Disruptions: Geopolitical conflicts, environmental issues, and economic downturns seem more prevalent than ever. The best TMS system paves the way for greater resilience during disruptions by providing real-time visibility and enabling quick, effective adjustments.
- Technological Advancements: The market demand for efficient logistics, driven partly by the rise of e-commerce, has led to significant advancements in SaaS transportation technology.
- Targeted Cost Savings in a Volatile Market: In an economic landscape where external costs like fuel, labor, and inflation are continually fluctuating and largely uncontrollable, companies are under immense pressure to reduce expenses they can control.
- Dynamic Rating: The best TMS system goes beyond traditional methods, leveraging dynamic rating and algorithms to enable businesses to plan comprehensively across various shipping modes. This results in cost efficiency and eliminates the need for manual calculations.
Debunking Misconceptions About TMS in Logistics
Comparing any TMS to an Enterprise Resource Planning (ERP) system reveals several common misconceptions.
Our eBook “Making a Case for Enterprise TMS” delves into this topic extensively, clarifying why the best TMS system is often the better choice for logistics operations.
- Speedy Implementation: Unlike ERP setups, which can drag on for years, the best TMS system can be up and running in as little as three months.
- Dynamic Visibility: While ERPs may offer only static data, a TMS provides real-time updates, offering logistics teams an invaluable bird’s-eye view.
- Cost-Effectiveness: While the average ERP setup can cost thousands per user, with a return on investment taking years, most companies see a break-even point using robust software for transportation management in as little as six months.
- Specialized Functionalities: ERPs aim to manage a broad range of business data, but the best TMS specializes in the intricacies of the transportation lifecycle. This focus enables features like carrier metrics and dynamic shipment planning, which are often absent in ERPs.
Making the Case for TMS Implementation
- Web Services Communication and Tracking: This capability resolves delays and additional costs and uses dynamic tools like supplier portals and electronic integration to make operations more efficient.
- Parcel Capabilities: Your TMS should be adept at handling daily functionalities such as booking and label generation while offering load optimization and comprehensive data analytics.
- Invoicing Automation: The best TMS system employs robotic process automation (RPA) to automate invoice processing.
- Bill of Lading Management: A centralized and simplified BOL system facilitates effective shipment monitoring and financial settlement, another must-have in your SaaS transportation solution.
- Compliance and Governance: Whether you manage your fleet in-house or outsource, using the best TMS system enables you to track driver certifications, safety checks, and other compliance markers meticulously.
- Streamlined Freight Management: Rating engines allow for quick comparisons of carrier prices and services. Advanced features like Dynamic Rate Manager take the complexity out of customer rating calculations and ensure pricing consistency.
The Way Forward: Realizing the Power of the Best TMS System
The logistical challenges you face today can become opportunities for improvement and growth tomorrow.
The best TMS system isn’t just a tool but a strategic asset that equips you to adapt and thrive in an evolving landscape. To dive deeper into this topic and get more actionable insights, download our eBook “Making a Case for Enterprise TMS.”