5 Use Cases Of Transport Management Software
Transport Management Software is a must in modern-day logistics and supply chain management. TMS can help the supplier develop a proactive approach to managing the flow of goods from origin to consumption. It enables them to reduce freight transportation cost, identify freight capacity quickly, and offers transparency into various activities. It can connect to industry databases to allow the business to stakeholders to make data-driven decisions.
However, choosing the right software is an intimidating task. While going through the selection process, you need to consider specific points. The software should integrate data and analytics features to support enhanced reporting capabilities and integrate them easily into your business infrastructure. Moreover, it should enable you to align your services to the general trade policies and compliance. The right software will provide you with better trade opportunities by optimizing the transport budget, manage costs, invoices, and track the fleets in real-time. TMS solution provides you with better visibility into the entire logistics transport operations.
The global TMS market size is expected to grow from USD 7.7 billion in 2020 to USD 17.8 billion by 2025. A TMS software can bring in multiple benefits in the supply chain process and enable you to generate maximum rate on investments. Here are five use cases of TMS in logistics operations.
Optimize Route Efficiency
A TMS solution gives you better visibility into the route for transporting the goods and services. It helps you consider real-time traffic conditions, equipment availability, personnel for loading/unloading, and more to facilitate on-time delivery and adhere to the SLA for enhanced customer experience. The route optimization capability of the software enables you to determine the most cost-efficient route.
A TMS facilitates an inventory reduction strategy which helps to improve inventory turnover. It uses accurate inventory forecast models that take the seasonality and trends into consideration to keep fluctuations in check while reordering stock. It helps to ensure replenishment strategy is aligned to market demand variances.
Improved Cash Flow
A transportation management software will help your business to minimize shipment costs significantly. Freight payment, auditing, and consolidation services help business personnel define each logistical route’s financial aspect. It helps to decrease direct variable costs by consolidating shipments and improving freight terms to make the transport operations more user-oriented.
Integrated Planning And Execution
A TMS solution can integrate seamlessly with the existing system you have in place for supply chain optimization. It can work together with other management systems for warehouse, customer relationship, purchasing and order cycle, and supplier relationship for better route planning and load optimization.
Improve Customer Experience
A TMS solution enables you to make data-driven decisions to manage end-to-end shipments. It helps you to save locomotive costs between multiple locations and control the movement of goods efficiently. It enables you to consolidate all customer orders to find the best carrier at a cost-effective price. Improved efficiencies in your transport management will speed operations and deliveries to help you satisfy time-sensitive customers.
A TMS solution will help you to move freight from origin to destination efficiently and reliably. It uses process enforcement, analytics, and optimization to enable businesses to save money, drive growth and revenue, and provide better customer service.