Automation in TMS Provides Efficiency Gains to Focus on Customers & Inventory Re-Routes

MercuryGate Blog - TMS Category

Few innovations have had a more profound impact on the supply chain than the use of automation in advanced systems. As automation has grown to encompass the world of transportation management systems (TMS), more shippers have realized the potential of automation in TMS functions to improve performance, speed delivery, and reap a greater return on investment. Moreover, continuous advancements within artificial intelligence and machine learning have the capacity to radically shift how every organization operates, leveraging all freight modality and more. Shippers and logistics service providers need to understand why.

Why Failure to Automate Leaves Money on the Table

Failure to automate key functions within your supply chain will only cost more money. A 2014 Oracle report, published by Logistics Management, found shippers would see dramatic increases in shipping costs without a TMS:

“Calling TMS one of the fastest growing enterprise application markets in its most recent TMS Global Market Research Study, ARC Advisory group says that a whopping 63 percent of companies would see at least a 5 percent increase (23% stated a 10 percent or more increase) in total freight costs if they had to give up their TMS and revert to more manual transportation planning and execution processes. According to ARC, a TMS achieves these savings based on process enforcement, visibility, analytics, and optimization, with virtually no other supply chain application offering so many different forms of optimization.”
As the level of automation in TMS has risen, that statistic has undoubtedly increased, and the proof lies in the sheer increase in the volume of shippers and carriers using a modern TMS to add value.

The Strong Benefits of Automation in TMS

Automation in TMS is rapidly forcing shippers and companies across the landscape to implement an advanced, logistics management solution that can finally break down barriers and improve performance. According to FleetOwner Magazine, the prevalence of the use of a TMS in the freight market increased by 29% between 2005 and 2018. This amounts to 91% of trucking companies operating 20 trucks or more using the power of automation in TMS to improve performance and reap greater rewards. The trend is also evident among carriers operating fewer trucks.

For example, “approximately one-third of motor carriers operating under 10 trucks are using TMS,” but again, that statistic has increased twofold in recent years. Statistically, even one in 15 single truck owner-operators are now using a modern TMS. Currently, the industry is moving toward complete saturation of the TMS market, and companies that take advantage of the value of automation in TMS now will be poised to reap the greatest reward.

Ways to Leverage an Automated TMS to Boost Customer Service and Inventory Management

From truckers to carriers and shippers, it always helps to have a few tips to leverage the value of automation in TMS. These steps include:
  • Deploying the TMS across your entire supply chain.
  • Mandating compliance and use of the TMS in all transactions.
  • Using application programming interfaces (APIs) or electronic data interchange (EDI) to seamlessly connect with the systems of other supply chain partners.
  • Avoiding hassle in an onboarding process by choosing a TMS that automatically includes all previously onboarded carriers for access when bringing the system online.
  • Taking advantage of artificial intelligence within the TMS to enable self-optimization and self-management of freight.
  • Connecting email services to allow robotics process automation to continue improving customer service and handling the typical “exception” needs.
  • Generating and sharing reports automatically to ensure all supply chain partners stay apprised of the situation and how they can best benefit from improved connectivity and automation.

Focus on What Really Matters by Leveraging Automation in TMS Functions

Automation is the new gold standard of freight management, and organizations that embrace automation in TMS capabilities now can future-proof operations, protect against disruption, and squeeze an extra 2% from TMS returns now. That is the power of the MercuryGate transportation management platform. Unlock the secrets to greater revenue with MercuryGate.

Schedule your MercuryGate demo online today.

MercuryGate

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