5 reasons you should invest in a TMS

Is your company ready for the next steps in digital transformation? Then it might be worth your while to check out Transportation Management Software (TMS). This software solution helps manage your transport in the best possible way, but it goes further than that. These are 5 reasons to invest in a TMS.

1. A single tool with global data insight

By embracing the digital revolution and taking a deep dive into its transportation processes, businesses investing in a fully connected TMS (one integrated with carriers and forwarders) will Transportation Management Software provides an overview of all transport activities within the company. All from within one single tool. Ocean, air or road transport, all multimodal transport can be tracked and booked at one glance. And real-time communication is possible too. Because the tool processes all of a company's logistics information, it contains a vast quantity of data.

Companies can use this to make strategic decisions that impact their performance. Not least by knowing the freight cost per item, real-time tracking data, and the KPIs of carriers. Logistics experts can use these reports and dashboards to keep an eye on the key parameters affecting their revenues.

2. Fewer manual inputs

The details of cargo loads are often kept on a number of spreadsheets, or even shared by e-mail between different departments. Implementing a transport management system marks a step in the company’s digital transformation. The automated tool significantly reduces manual data entry, which in turn reduces the error rate. Information such as PO numbers, cargo weight, costs, and destinations are entered automatically.

3. Lower shipping costs

Virtual transport management tools help companies reduce freight costs by optimizing their logistics processes. A combination of consolidation, automated choice of transport type, optimized loading ratio, and fewer empty kilometers allows logistics professionals to make the cheapest transport choice. What's more, companies have easy access to a wider choice of carriers, giving them more options.

4. Better customer service

A connected TMS receiving data from all carriers and forwarders unlocks the real power of data analytics, providing businesses with accurate data and trends to gain actionable insights for better As e-commerce increasingly becomes the norm, customer expectations are changing and it is becoming more and more difficult for supply chains to transport goods. Orders need to reach their destination faster, and they must be cost-efficient and transparent. TMS enables companies to meet these demanding customer expectations.

5. Consistent information flows

It's not just the logistics department that benefits from a TMS. That's because the software can be integrated with other systems. For instance, many companies link their ordering systems, e-commerce platforms or ERP systems to the tool. This optimizes internal business processes. This ensures global visibility, while activities across teams and departments run more smoothly. They can also contribute to a clear and consistent flow of information.

TMS automates and optimizes a company's logistics data processing to ensure efficient transport, but it also helps improve internal business processes. It is a key step towards digital transformation, which is becoming increasingly important in the industry.