There are many advantages of Transportation Management System (TMS) that anyone who is into shipping would realise. They are way past simply the cost of shipping cargo. On the off chance that you take a look at your freight and transportation department as more than only a cost, then you are thinking on the right course on what is the best way to holistically help your business influence a TMS for the maximum ROI (Return on Investment).
The main reason why companies implement a TMS is, obviously, to reduce shipping costs. But the thing to understand is TMS does so based on process enforcement, analytics and optimisation. To put it plainly, TMS helps companies ship from one end to the other more efficiently, reliably, and cost effectively.
Although TMS has immense benefits to a business, a recent survey shows that just 35% of shippers are using it as a part of their overall supply chain management strategies. But, on the upside, it is also found that 39% percent of total shippers have planned to either purchase or upgrade their TMS during the coming year, signalling that there is a scope for higher adoption rates of TMS in the future.
With the objective of making logistics operations comprehend the advantages of TMS, we at GoPigeon are here to outline 4 reasons why each shipper ought to integrate it into their overall supply chain management endeavour.
Better integration for shippers in Omni-channel environment: The changing way of the worldwide economy, the unfaltering development of e-business and the requirement of Omni-channel satisfaction are all putting more strain on the regular supply chain. Truly, there are logistics and administrative issues that go with worldwide delivery, however e-business allows customers in about all aspects of the world to view and buy merchandise, paying little mind to its physical location.
Minimal impact of driver shortages: Driver shortages still remains a major concern for 3PLs and the shippers they serve. Excel spreadsheets and telephone calls are not going to cut out the problem. TMS can help particularly with shippers in need of innovation in order to get a better picture of driver availability and carrier capacity.
Cloud integration: Few would contend the way that TMS was one of the primary supply chain management solutions for move into – and stay in – the cloud. With lower barriers to entry, upfront costs and easier upkeep and upgradation, cloud-based applications have taken off over various different supply chain solutions and platforms. The clod gives TMS customers a competitive price, low overhead costs and reduced headaches.
Certain Return on Investment (ROI): According to a survey, the ROI of TMS indicates shipping cost saving of around 6%. Nearly 60% users of TMS say that less than 25% of the nest savings were absorbed by TMS. Nowadays, many companies are choosing to use Managed Transportation Services (MTS). While both TMS and MTS are same in terms of cost savings, TMS is less risky as fewer TMS users achieved negative results as compared to MTS users.
What other benefits would you say are derived from TMS implementation other than the ones stated above? Let us know in the comments below!
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