Digitization is transforming business operations and creating new winners. It all started 30-40 years back with the digitization of accounting activity. People shifted from manual records to software for accounting (SAP, Oracle, Tally, and Quickbooks). It was followed by sales & marketing (salesforce) and human resources. But evolution in logistics continued to be low due to a lack of literacy and operational standards. However, with advancements in cloud technology and deep penetration of smartphones, logistics is the next significant transformation. Logistics is creating new winners, and SCM optimization as brands now need solid operational and cost competencies.
Manufacturing, construction, distribution, and logistics companies increasingly realize the importance and benefits of digitizing logistics operations with TMS. The right kind of Transportation System may provide unlimited power to define, manage and control the evolving supply chain helping in logistics cost reduction and improving customer service.
A Transport Management system helps transport information from origin to destination efficiently, reliably, and cost-effectively. Live Dashboard and Control Towers can automate and optimize workforce, time, and resource-consuming tasks like finding the best quote, tracking shipping statuses, and managing inbound and outbound transportation.
Top 7 benefits of a Transport Management System
Companies that implement TMS solutions compared to traditional processes perform better in terms of cost optimization and better customer service. Here are the top 7 benefits of using a transport management system,
Reduce Freight Cost by 2-8% with freight e-negotiation
Freight negotiation has long been a gray area, especially for companies dealing with day-to-day spot procurement. In the past, solutions have been available for negotiating freight contracts with high-value deals such as Ariba from SAP, but spot procurement continued to be manual. With the advancement of technology and smartphone penetration, it is now possible to do spot e-procurement for freight.
The following benefits are:
- Transparent and audit compliant- remove any gap.
- Increase reach to a larger supply pool with a single click. It is humanly impossible to dial every number on your impaneled list, but the system does it for you.
- Increase in employee productivity by automation of manual processes.
Enhance Employee Productivity by up to 200% with Trip Dashboards
TMS helps to digitalize day-to-day operations and information management like vehicle reporting, loading, dispatch, in-transit, delivery, and payments. Coordination between stakeholders is automated and seamless, and People can access real-time information from a single source. Emails and phone calls for information exchanges are reduced by 80%, leaving more time for productive work. KRA for teams & processes can be defined, measured, and improved. Data is available in a structured manner for analytics, creating scope for further optimization.
Track deliveries in real-time
Visibility of material is critical for both inbound and outbound movement. Inbound visibility helps improve production planning. Any exceptions or setbacks can be pre-identified, and plant shutdown or project delays can be avoided. Outbound delivery reliability plays a pivotal role in improving customer service. Greater control and visibility of transport execution help freighters and customers take corrective action quickly. The system allows tracking drivers and shipments’ real-time location, helping create an efficient route schedule.
Increase Customer Service
Customer expectation of post-order visibility is becoming a norm with e-commerce sites and delivery companies, making it an industry standard. They like to know the order status and in-transit vehicle tracking. Using the management system with accurate reports and analytics allows the company to engage B2B customers post-receipt of orders. The ability to monitor on-time performance provides improved customer service. Notifications and data access to customers improve client retention and reduce 10% of sales team time in post-order coordination.
Improve warehouse efficiency and productivity
With the continuous incoming and outgoing inventory flow, a well-organized warehouse is a crucial part of the logistics process. Warehouse efficiency and capacity can be enhanced with TMS integration. Balancing a Transport Management System with the Warehouse Management System can help manage the record of orders and track their location in the warehouse, in transit, and when they arrive. Pickup can be planned based on a vehicle reported in the plant instead of vehicle planning. It allows users to analyze processes and ensure they are productive and profitable.
Automating accounts using TMS will save valuable time and resources on voluminous paperwork. Documents like Lorry receipts, e-waybill, and freight invoices will be auto-generated, eliminating manual intervention. Management workload will be reduced to a greater extent by
- Reduction in processing time
- Removing errors in documentation
- Removing any duplicate payment
- Pre-verifying freight invoices that save processing time, miscalculation, and discrepancies
Optimize inventory with supply chain planning
The ability to track drivers, inventory, and other data-driven decision-making helps in better asset utilization and allows the business to maximize productivity, obtain even greater visibility and improve the goods transportation process. Implementing a good TMS can transform the logistics and supply chain function into a strategic advantage for an organization. With SuperProcure and other TMS solutions offering SaaS pricing, the payback is instant, and one doesn’t have to wait for years. Set up a demo with us.