Companies are continuing to invest and implement transportation management systems (TMS) and real-time transportation visibility solutions even while they may be pulling back from investments in other areas. For companies that are considering expanding their transportation capabilities, including administration, planning, execution, visibility (including real-time insights into orders and shipments across the extended supply chain), settlement, and analytics there are some important topics that companies should consider. In this article, we'll explore one of those topics, and that is the advantages of choosing an integrated TMS with real-time visibility from a single vendor, as opposed to opting for separate solutions from different providers. Selecting the right TMS with either an included visibility solution or a separate one, will impact your ability to increase your supply chain performance, agility, and resilience.
Seamless Integration with Accurate Data
One of the primary technological benefits of choosing an integrated TMS with real-time visibility from a single vendor comes from ‘semantic interoperability’, which enables the seamless collaboration between the systems by utilizing a common data format and common data structure protocols. When your transportation management and visibility solutions are designed to work hand in hand, data flows effortlessly between them.
Typically, a TMS is connected with carriers and freight forwarders to automatically tender loads, send and receive bookings (VGM/shipping instruction for ocean), receive status messages as well as invoices. In addition to this process for passing data with the carriers and forwarders you need to ensure that your TMS understands the data with each partner, as each company may use different data fields and codes in their systems. This is further complicated when visibility solutions are also receiving data from carriers and forwarders.
For example, visibility solutions usually track container/load levels while a TMS typically provides status updates on shipment level, which could create discrepancies in status between the systems. Another challenge with separate TMS and visibility solutions occurs when a carrier sends a status message which will cause the visibility provider to update within its system, but the TMS may not have the capability to apply that status at the correct level of detail, resulting in conflicting information between the TMS and visibility solutions.
Having a TMS with real-time visibility from the same vendor ensures that communications coming into the TMS or visibility platform will be understood and updated correctly across your organization. This interoperability reduces the risk of errors that may arise when managing data across multiple platforms from different partners.
Many well-known TMS providers (e.g. SAP TM, Oracle Transportation Manager, Blue Yonder) do not have a real-time visibility platform in their solution set and rely on external real-time visibility solutions. This deployment architecture requires added maintenance and introduces risk in the final solution.
The benefit of an interoperable TMS and visibility solutions really stands out when the systems go through updates by the vendor. If your TMS and real-time visibility are provided by different vendors there is a chance that when a version update is rolled out that your integration may not work as expected, or that there might be new feature added by one vendor is not able to be taken advantage of in the other system. By having your TMS and real-time visibility solutions from one vendor you are assured that the integrations and roadmaps are aligned and will take full advantage of upgraded features.
Customer Support and Issue Resolution
With any TMS and real-time visibility solution implementation through to on-going usage there will be issues that arise. These issues will range from simple usage questions to more complicated topics that affect the benefits you’re getting from the solutions. When you’re with a single vendor for TMS and real-time visibility the time to resolution will be quicker and there will not be any finger-pointing between the reps from different software vendors on where an issue may reside, and which vendor is responsible for working with the customer to resolve.
Having a streamlined account management and customer support process is highly impactful to companies getting the full value from their TMS and real-time visibility investment.
Cost-Effective Solution
Investing in separate TMS and real-time visibility solutions often comes with higher costs related to licensing, maintenance, and support. By choosing a comprehensive solution from a single vendor, you can consolidate your expenses and avoid the complexities associated with managing multiple contracts, service agreements, and renewals.
Efficiency/Automation in Decision Making
Having the most accurate and complete data in your TMS results in confident automation and improved decision making, which has both a financial and service impact. Having real-time visibility data fed seamlessly back into a TMS enables deeper optimization and better synchronization with your partners. For example, your integrated solution can automatically communicate with your forwarder when a container will be available for pickup; and then receive an automatic response that is then used to update the ETA for the warehouse/customer. With up-to-the-minute insights into your extended supply chain, you can proactively address issues, streamline labor, optimize transportation, and ensure timely deliveries, ultimately enhancing customer satisfaction
CO2 Reporting
With the upcoming CO2 reporting legislation in Europe and California, shippers will be required to disclose their CO2 emissions in their supply chain starting in 2024. This means that companies will need to have the most accurate data about the mode of transport (preferably even the type of equipment used), the weight, the distance, etc. to calculate accurate CO2 emissions. A TMS alone will typically not have all this information, but when combined with an integrated visibility solution more specific information is available for companies to capture this information.
Conclusion: A Unified Approach for Lasting Success
In conclusion, the decision to invest in an integrated Transportation Management System with real-time visibility from a single vendor is a strategic move that pays off in numerous ways. From reducing costs to improving efficiency and customer satisfaction, to receiving better on-going support, the benefits are clear.
Descartes is a leading vendor for integrated TMS with real-time visibility, as well as for stand-alone real-time visibility that can connect to any number of TMS. This claim is backed up by our placement in the latest G2 Grid rankings based on user reviews and other data (Visibility Grid, TMS Grid). Plus, as a publicly traded company on two stock exchanges, Descartes has the financial health and commitment to research and development to be a long-term partner to any company looking for domestic or international solutions. By choosing TMS and real-time visibility from Descartes, you're not just streamlining your supply chain; you're future-proofing your business for success in the dynamic world of transportation.
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 fill in the form below.
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