Using Automated transportation Management Systems to Improve Logistics

Automated Transportation Management Systems (TMS) help distributors significantly lower freight expenses, improve logistics, and transportation operations, and increase customer/client satisfaction.

A TMS is one of the most profitable investments a company can undertake. Many TMS’s are fairly cheap to implement, thanks to their web-based functionality. Web apps typically include Application Programming Interfaces (API) that allow for seamless integrations with Enterprise Resource Planning (ERP) programs or Warehouse Management Systems (WMS) to achieve complete supply chain visibility.

Managing logistics manually is inefficient and leads to poor planning and inaccurate warehouse inventory counts. A TMS simplifies data-entry through logistics automation. Company assets and addresses, for instance, are automatically uploaded to integrated ERP systems, reducing human error caused by manual data entry, and consequently, reducing costs spent on reverse logistics.

Like a lot of software systems, TMS apps have Role-Based Access Controls (RBAC), which facilitates a collaborative network wherein all parties (shippers, logistics providers, curriers) can communicate more seamlessly, allowing businesses to plan their logistics operations with deadly accuracy.

TMS-generated reports give companies actionable insights on shipping activity, currier performance, and operational costs. One element of logistics planning that is critical to supply chain management, and can benefit from automation, is route optimization. Large swaths of data, including average traffic density, planned drop-offs, and regional gas prices, are analyzed to identify the most efficient supply routes.

While many businesses handle logistics management in-house using a generic application, many choose to hire supply chain technology experts to design personalized TMS software for them.