3 Reasons Every Shipper Should Use a TMS

Technology tends to be at the heart of most of today's business operations. And when it comes to the supply chain, that means consistently improving the efficiency of freight movements. Thankfully, those who ship freight daily find that using transportation management software quite helpful in achieving this goal. 

The modern TMS has evolved significantly since its debut nearly 20 years ago. With every software upgrade, new platform development, and integration of user-friendly tools, these platforms are advancing year after year. But the primary goal always remains the same; help shippers locate and hire the best carriers to do the job. 

There are multiple types of TMS software available to consumers in multiple industries. However, regardless of the type of industry that you serve, if you ship freight, utilizing a robust TMS can be quite beneficial. 

So, in this blog post, we will review 3 the best benefits and features that all TMS systems bring to the table to help their users improve their logistics network and better serve their customers. 

What is Transportation Management Software? 

The modern TMS is a software solution that facilitates communication between supply chain partners. Generally cloud-based, you can find them as legacy platforms as well.

TMS software often features customer relationship management platforms or software programs. These might include customer management systems (CMS), inventory tools, and other logistics-minded solutions. Together, these platforms arm a business with a full-scale solution for order management, customer communication, and various supply chain functions.  

Furthermore, there are several different layers that comprise a transportation management system. Its primary task is to allow a shipper to plan, rate, and hire carriers that are best qualified to move their products. But it allows them to dig much deeper into the list of candidates and with the ability to filter by specific criteria.

Some of the common tools used throughout the logistics space include route planning optimization, carrier management, and freight bill auditing. Furthermore, it also provides tracking, order notification, and communication with customers, all in real-time.  

Let's take a look at the top 3 reasons why you should be using a TMS...

Route Planning Efficiency  

Undoubtedly, the best feature that a TMS software solution offers a shipper is improving the route efficiency of a shipper’s delivery cycle. The transportation management software program receives, organize, and documents reporting functions that are easy to review and are applicable to the industry. 

A few of the specific tools used to improve route planning efficiency include documenting on-road service, noting stops per hour, or reviewing the volume of various shipments.

Additionally, some TMS systems feature plugins and additional tracking software that allow the shipper to review driver performance on the fly.  

Data Analytics & Reporting  

Ask any manager about what's important to them, and how they make decisions, and you will likely see a common thread. As a matter of fact, most successful business leaders depend on data analytics and hardcore statistics that are factual, applicable to their business, and reported in easy-to-understand formats.

Reporting functions can make or break the supply chain efficiency. With all this new technology, competition is getting fierce in the shipping world.

Having the right reporting functions makes all the difference. Additionally, a solid TMS collects data then organizes it into reports to give you and your team plenty of data to make better-informed decisions.

Improved Customer Communication Methods 

One very simple concept that many shippers struggle with is figuring out how to juggle shipping efficiency with customer service?

Truthfully, the answer is that it's impossible to do so, and it's also just as ridiculous to attempt. In fact, the heart of all business is not new customers, it's ensuring that existing customers are satisfied. More importantly, the goal is to keep them coming back for more. Today's customer demands quicker updates, more relevant information, and communication done through platforms of their choice. 

This is the strength of most TMS systems. They are integrated with a companies CRM which allows all team members of a company to access customer-related profiles. From this online dashboard, a shipper has the power of accurate customer information and can update those files with a few simple keystrokes. From that point, the recipient receives instant messages, text messages, emails, or even automated phone calls. 

Ready to get Started With Transportation Management Software?

These types of software platforms are designed specifically for individual customers and the type of business they manage. Working with an experienced 3PL allows shippers to access TMS software solutions that are perfect for their industry. Ultimately, a well-built TMS can help shippers resolve problems within their supply chain operations for a minimal investment. 

Interested in learning more? Drop us a line here at Redwood Logistics.