Transportation is a crucial strategic, operational input and output which links businesses to their suppliers and customers. It is inextricably linked to inventory management, market forecasting, as well as storage and delivery process. By optimizing time, resources, and energy, an efficient transport management software system benefits the supply chain.
The transport process dictates the efficiency with which things are transported. It has the potential to optimize load management, operational costs, faster delivery, customer satisfaction, and service quality. Any delay or disruption will significantly impact many supply chain operations, therefore affecting the entire economy. As a result, transportation requires strategic planning and execution.
A 9.2 percent compound yearly growth rate is projected in the global transportation management system market by 2027, based on data from Allied Market Research. The market was valued at $5,854 million in 2019 (CAGR). The ease with which businesses carry goods significantly impacts their position and competitiveness in the global market. Companies can benefit from transportation management software systems that simplify and streamline export and import procedures.
How to choose the most appropriate transport management system?
- Become Familiar with Your Industry
To begin, transportation project management software is necessary to understand how your firm will utilize TMS capabilities—understanding what and how your firm operates can also help you lay the groundwork for establishing a robust operating foundation.
Here are a few points to consider:
- The means of conveyance that the firm will use to ship its goods.
- The total amount of shipments that your business manages.
- Are you capable of serving numerous locations?
- If there are sufficient individuals capable of handling multiple shipping procedures
- Identify Your Objectives
After gaining knowledge of your business, concentrate on gaining an understanding of your ultimate ambitions. By acquiring knowledge of your objectives, you may select the most appropriate TMS solution. Prepare yourself by asking yourself the relevant points like:
- Determine if you want a complicated TMS solution for managing a large fleet and inventories or prefer a user-friendly TMS for non-technical personnel.
- The expense of implementing a TMS.
- How much time will it take to become familiar with the system?
- Market Analysis
Without a thorough grasp of the market and TMS service providers, you will never achieve the desired objective. Thus, take a deeper look at the market to determine what it is offering and at what price point.
As per Grand View Research, in 2020, the roadways category held the greatest market share, reaching 40%. Once you’re aware of this, you can easily remove vendors that do not provide the necessary transport management software capabilities.
What Are the Primary Features and Benefits of Transport Management Software (TMS)?
Businesses cannot expect to function efficiently in an increasingly digital corporate world by depending solely on traditional phone conversations, emails, and spreadsheets. TMS solutions have evolved significantly over many years, evolving from simple freight management capabilities to fully integrated fleet management systems. Additionally, they have become more accessible to all companies, regardless of size or sector.
Among the most notable TMS advantages are the following:
- Freight Optimization
Keeping track of all shipments and means of transportation may be difficult. Important details might be overlooked, resulting in delays, misunderstandings, and other costly situations. However, by utilizing comprehensive TMS software, businesses can manage all of their data, preventing such scenarios while combining orders and optimizing supply chain management, route planning, and timetabling.
- Yard Management and Inventory Optimization
The TMS enables dock configuration optimization by reducing congestion, increasing visibility of all shipping vessels, and immediately updating all dashboards and route information. Furthermore, the technology will save time for inventory planning by improving real-time insight into both inbound and outgoing freight. This eliminates the necessity for excessive stockpiling or the expense of maintaining a safety supply.
- Tracking Shipments
Historically, TMS solutions were used to handle outgoing freight. The platform, on the other hand, is an excellent tool for handling inbound freight. When properly integrated into the overall logistics plan, the TMS provides a 360-degree perspective of the whole supply chain. It enables freight cost savings, optimizing dock management, and enhancing customer service by offering complete transport transparency.
- Carrier Rate Management
TMS solutions may also store contract carrier price information, helping logistics firms cost-effectively optimize their shipments. Also, it improves insight into carrier payment processes, enabling customizable payment choices and the ability to accept or deny shipper accessorial without requiring an invoice.
- Freight Bidding and Benchmarking
Carriers and freight forwarders may bid on shipments through their TMS, reducing time and streamlining the freight distribution. It will consider various factors, including award ranks, overall cost, and lane percent distribution, while facilitating communications, including all carrier partners. This capability of benchmarking will enable TMS users to negotiate lower carrier prices and pick higher-quality carriers.
- Order-to-Cash Cycle Acceleration
A TMS will also directly influence the order-to-cash cycle, enabling for quick assessment of which logistical processes require improvement or correction. By maintaining a physical audit trail of all operations, TMS users may retrace their steps to determine the source of any errors that may have happened along the route.
In comparison to other similar models, a TMS solution enables improved customer service, improved operations, and decision support.