Benefits of Transport Management System (TMS)

You are currently viewing Benefits of Transport Management System (TMS)

Digitization is transforming business operations and creating new winners. It all started 30-40 years back with digitization of accounting activity. People shifted from manual records to software for accounting (SAP, Oracle, Tally, Quickbooks, etc). This was followed by sales & marketing (salesforce), human resource, etc. But evolution in logistics still continued to be low due to lack of literacy and operational standards. However, with advancement in cloud technology and deep penetration of smartphones, logistics is the next big transformation. New winners are being created by logistics and SCM optimization as brands now need strong operational and cost competencies.

Companies in manufacturing, construction, distribution and logistics are increasingly realizing the importance and benefits of digitizing  the logistics operations with TMS. The right kind of Transportation System may provide complete power to define, manage and control the evolving supply chain helping in logistics cost reduction and improve customer service.

Transport Management system helps manage transport information from origin to destination efficiently, reliably and cost effectively. Live Dashboard and Control Towers provides the ability to automate and optimize manpower, time and resource consuming task like finding the best quote, tracking shipping statuses and managing inbound and outbound transportation

Companies that implement TMS solution compared to traditional processes perform better in terms of cost optimization and better customer service.

     A Detailed Case Study on  Logistics Workflow Automation

Few major benefits are as followed

 1. Reduce Freight Cost by 2-8% with freight e-negotiation – Freight negotiation has long been a grey area specially for companies having to deal with day to day spot procurement. In past solutions have been available for negotiation of freight contracts with high value deals such as Ariba from SAP, but spot procurement continued to be manual. With advancement of technology and penetration of the smartphone, now it is possible to do spot e-procurement for freight. Benefits being                                                                                        

• Transparent and audit compliant- remove any gap
• Increase reach to larger supply pool with a single click. It is humanly not possible to dial every number on your empanelled  list, but the system does it for you
• Increase in employee productivity by automation manual process.

2. Enhance Employee Productivity up to 200% with Trip Dashboards – TMS helps to digitalise day to day operations and information management like vehicle reporting, loading, dispatch, in-transit, delivery, payments, etc. Coordination between stakeholders is automated and seamless, People are able to access real-time information from a single source. Emails and phone calls for information exchanges are reduce by 80%, leaving more time for productive work. KRA for teams & processes can be defined, measured and improved. Data is available in structured manner for analytics, creating scope for further optimization.                                                          

3. 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 acts a pivotal  role in improving customer service. Greater control and visibility of transport execution help both freighters and customers take corrective action in time. The system provides the ability to track drivers and shipments’ real time location helping create an efficient route schedule.                                                                                                                                     

4. 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 status of order, in transit vehicle tracking, etc. Having the ability to use the management system with the accurate reports and analytics allows the company to engage B2B customers post receipt of order. 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.                                                                                              

5. Improve warehouse efficiency and productivity– With the continuous flow of incoming and outgoing inventory, 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 managing the record of orders and track their location in the warehouse, in transit and when they arrive. Pickup can be planned based on vehicle reported in plant instead of vehicle planning. This will allow users to analyse processes and ensure they are productive and profitable.                     

6. Digital Documentation- Automating accounts using TMS will save valuable time and resource spent on voluminous paperwork. Documents like Lorry Receipt, e-waybill, Freight invoice, etc will be auto-generated eliminating need for 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 saves processing time, miscalculation and discrepancies

7. Optimize inventory with supply chain planning – Ability to track drivers, inventory and other data driven decision making helps in better asset utilisation and allow the business to maximise productivity, obtain even greater visibility and improve the process of goods transportation.   

Implementation of a good TMS can transform the logistics and supply chain function into a strategic advantage for an organisation. 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.

  • Post author: