Why Use The Best TMS System To Manage Logistics?

Best TMS system capabilities give you visibility and control in your network across modes.

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The pride once taken in reactive problem-solving and “putting out fires”’ in the supply chain has been replaced by a sobering recognition of inherent vulnerabilities. Companies can no longer afford the luxury of operating reactively and treating disruptions as isolated incidents to navigate.

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.
So, market conditions do not just influence the need for a TMS; they dictate the features and capabilities that are most crucial for businesses.
Adopting the best TMS system enables companies to be agile, efficient, and more responsive to market changes and disruptions.

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.
The following sections explore strategies to secure a TMS that fits your needs.

Making the Case for TMS Implementation

To convince decision-makers in your organization, begin with a clear understanding of what a TMS should deliver. During the TMS demo, it’s crucial to highlight critical functionalities that can help secure the necessary backing for 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.
When you see the value a TMS delivers, it becomes clear that you’re not just buying software. You are investing in a comprehensive SaaS logistics solution that aligns with your operations and broader business goals.

Calculate your potential Saving While Using an enterprise TMS

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.”

Learn the benefits of an Enterprise TMS in your supply chain.


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