Another 4 Reasons why every Shipper needs a Transportation Management System (TMS)

More reasons why every Shipper needs a Transportation Management System (TMS)

In our previous blog, we mentioned Transportation Management System (TMS), what is it and how it benefits a business. To summarise it, every shipper would need TMS integrated with its core operations as it carries the day in Omni-channel environment, minimises the impact of driver shortages, can be integrated with cloud, and has a proven Return on Investment (ROI).

But there’s more! We, at GoPigeon, got in touch with some leading experts in the supply chain industry and were pleased to exchange some healthy ideas and information about TMS and how big of a part it can play in supply chain and logistics. The discussion went on about the basics of TMS, which industries are using it and which are in dire need to use it, and how it can be beneficial to a business.

We have already covered some great advantages of integrating TMS, but we came across some more of those that we would like to share with you. Here they are:

Proactive way to deal with Supply chain management: Generally, a company either has a proactive or a reactive approach. Companies running a reactive approach are dependent on a mix of spreadsheets and manual communications with their suppliers. In other words, they are focused on driving daily tasks instead of discovering new ways to work smarter, better, faster and cheaper. As is the case with companies having proactive approach, they streamline their supply chin needs, associate with their carriers and enhance the way they get and manage cargo.

A treasured data mine: Gone are the days where companies use a mix of excel spreadsheets, phone calls and emails to deal with their transportation needs that cost them huge amounts of cash on a yearly basis. Companies have started adopting automated TMS and have access to the dashboards, reports and different measurements that enable decision making and cost savings. For the companies who are yet to adopt it, should first answer questions like: How much am I spending on shipping? What am I spending on each load? Are my clients receiving the shipment on time? Do I have proper visibility of supply chain?

An important cog in the machine of digitally-connected supply chain: TMS allows shippers to manage their own expenses and keep tabs on their internal metrics, and also gets hold of carriers, customers, suppliers and other business accomplices into the platform. For example, a shipper can use TMS to quickly see how specific carriers are performing regarding on-time deliveries and customer service. Utilising this data, companies can make better decisions about transportation that will enhance customer service, and also, shippers can successfully explore where mobility, cloud, Internet of Things and other developments are.

Improve in Customer Service levels: In the previous blog, we stated that a regular shipper achieves 6% ROI through TMS. Also, customer service levels improve as there is enhanced visibility, speed and automation that TMS gives. A dashboard is particularly useful as it allows shippers to pinpoint their shipments, get to a specific delivery time, or present an option like invaluable customer service tools.

Do you still think we might have missed a couple more benefits of TMS? Please let us know in the comments below.

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