Benefits of a Networked TMS: Integration and Efficiency

What are the benefits of a networked shipper Transportation Management System (TMS)?

If you ask 100 people what a TMS is, you’ll probably get at least 85 different answers*. The traditional transportation capabilities that a typical multi-/intermodal TMS enables include sourcing, contract administration, shipment processing, rating, planning/optimization, execution, tracking, audit/settlement, and analytics. In this article, we’ll explore the advantages of choosing a modular, networked TMS from a single vendor for planning, execution, and visibility, instead of choosing to connect separate solutions from various providers.

What are the benefits of a networked shipper Transportation Management System (TMS)?
Single-vendor solution reduces errors and ensures flawless operation
Customer support and issue resolution
Cost-effective solution
Efficiency and automation in decision making
Closing thoughts: A unified approach for lasting success

networked shipper Transportation Management System (TMS)

Single-vendor solution reduces errors and ensures flawless operation

One of the primary benefits of choosing a single-vendor modular, integrated, networked TMS that can manage all modes (Private/Dedicated Fleet, Full Truckload, Less-than-truckload, Inter-modal, Parcel, Ocean, Rail, etc.), enable real-time visibility, dock/yard management, perform advanced consolidation, automatically select the best carrier, handle connectivity/messaging across different protocols, audit freight invoices, etc. is that the solution is designed to work as one. No added translations, integrations, or data mappings are needed.

In many instances, a traditional TMS - like those offered by an ERP vendor – simply provides an API which carriers and freight forwarders can use to exchange data like bookings/tenders. However, if you truly wish to automate all your communication flows, this is not sufficient as many carriers/forwarders cannot or will not invest in building/maintaining the connections to the API. Which is why a TMS vendor with a large existing network of API/EDI connected carriers/brokers/forwarders and has the ability to add new partners quickly and efficiently provides a more streamlined solution that saves money and increases customer satisfaction. Only a few TMS vendors can deliver a connected-networked supply chain ecosystem. Such a network is required to ensure that connections with all your carriers and partners, across all modes, geographies, and protocols are up and running within a reasonable timeframe. Shipment status messages, Bills of Lading, real-time visibility alerts, customs filings, and invoices are even more likely to be beyond the capabilities of a traditional TMS.

When assessing a TMS, shippers must understand the TMS vendor’s integration capabilities for seamless data exchange to realize the promised benefits from the solution. For example, a networked TMS with real-time visibility and connectivity from the same vendor ensures that communications coming into the TMS at a container, load, or shipment level will be understood and updated correctly across your systems and extended supply chain. This type of interoperability reduces the risk of errors that can occur when managing data across multiple platforms from different partners.

The benefit of a single-vendor networked TMS really stands out when systems go through updates. If your TMS and supporting technologies are provided by different vendors, the deployment architecture requires additional maintenance and introduces risks in your solution. When a version update is rolled out in one system, your integrations may not work as expected. Additionally, a new feature added by a vendor in one solution may not be taken advantage of in another system. With a single-vendor networked TMS you are guaranteed that integrations and product roadmaps are aligned and that you’ll be able to take full advantage of upgraded features.

Customer support and issue resolution

With any TMS implementation there will be challenges around data, workflows, and how best to work with back-end systems etc. These issues will range from simple usage questions to more complicated topics that affect the benefits users are getting from the solutions. When working with a single vendor for a TMS along with visibility, connectivity, dock/yard management etc., the time to resolution is shorter and there is no finger-pointing between software vendors on where an issue is located or which vendor is responsible for resolving issues for the customer.

Cost-effective solution

Choosing a traditional TMS that does not offer all required capabilities forces you to invest in separate supporting solutions. For instance, features such as real-time visibility and carrier connectivity, when added to a traditional TMS, typically result in increased total cost of ownership for licensing, implementation, maintenance, and support. Opting for a single-vendor networked TMS allows you to consolidate expenses and avoid the complexities of managing multiple contracts, service agreements, and renewals.

Efficiency and automation in decision making

Having the most accurate and complete data in your TMS also results in confident automation and improved decision making, leading to lower costs and higher customer service levels. Having real-time data fed seamlessly back into a TMS and supporting systems enables advanced optimization and better synchronization with your partners. For example, your integrated, networked TMS can automatically communicate with your forwarder about a container’s availability for pickup; and subsequently receive an automatic response that is then used to update the ETA for the warehouse or customer. With up-to-the-minute insights into your extended supply chain, you can proactively address issues, streamline labor, optimize transportation, ensure timely deliveries, reduce carrier charges (detention, demurrage, etc.), and ultimately enhance customer satisfaction.

Closing thoughts: A unified approach for lasting success

In summary, the decision to invest in a single-vendor networked TMS that supports all of your transportation needs is a strategic move that pays off in numerous ways. From reducing costs to improving efficiency and customer satisfaction, to higher data quality and receiving better continuous support.

Descartes is the leading vendor for both networked TMS and stand-alone modular solutions. This claim is backed by our placement as a leader in the latest G2 Grid rankings based on user reviews and other data (Visibility Grid, TMS Grid). By choosing a networked TMS you're not just streamlining your supply chain; you're future-proofing your business for success.

We hope that you found this article valuable and have a better understanding of deployment options with TMS and real-time visibility. If you have any follow-up questions, feedback, or would like to learn more please let us know at info@descartes.com. Or contact us via the button.