In any supply chain process, three aspects are important: transportation, manufacturing, and warehousing. It is based on different activities, including delivery planning, carrier management, shipping tracking and much more for proper handling. Such activities are impossible through simple phone calls or spreadsheet Excel software. This is when the latest technology, called the “Transport Management System”, came in. Do you want to know about a reliable platform for operating transport and logistics without hassle? Supported by a driver mobile app, Tachyon is a B2B digital logistics cloud-based tool that helps its users control their transportation and logistics operations.
Modern technologies, data integration, and automated processes have helped the TMS operate efficiently. A TMS maintains and processes logistical data using databases and cloud-based storage. This change allows mistake reduction, automatic record updating, and handling difficult logistics situations—unworkable for human management. It analyses and contrasts carrier rates and services using algorithms to handle procurement automatically. Plus, it interacts with carrier databases, retrieves real-time rate data, and uses company-specific logistical rules to choose the best-fit carriers for every shipment.
Through Application Programming Intervals (APIs), it also connects with enterprise resource planning (ERP) systems and warehouse management systems (WMS). This helps to synchronize inbound and outgoing logistics operations. It schedules and controls warehouse receiving activities, deliveries, and pickups using information from various systems. The TMS gathers enormous volumes of logistics data as all of this is occurring and runs analytics engines on it. These engines create actionable insights, compare performance against KPIs, and spot trends. All of them are visible via interactive dashboards and comprehensive reports.
Transport Management System is best known for offering comprehensive features for managing logistics and transportation functions in one place. Let’s talk about how they help Saudi contractors by highlighting its features:
Load Planning
This lets you arrange the loading space of your trucks, containers, and vehicles to maximum space. You can even consider the maximum weight each vehicle can transport. To properly plan loads, you will first enter every vehicle’s measurement and capacity data and apply this along with your item measurements. It enables you to divide orders fairly among the several delivery trucks at hand.
Route Planning and Optimization
Specific TMS systems also provide robust route planning features, which help you determine the most effective means of delivering every order. This allows you to eliminate any inefficiencies in your paths so that you may increase delivery without sacrificing pace. Moreover, this helps you improve your bottom line by saving on labour and gasoline expenses.
Execution of Load
TMS lets you automatically handle the tendering process for your goods. Instead of going through this process manually, they can digitally tender loads depending on the routing guide to the correct carriers. You may speed processes by automatically assigning carriers, including booking and tendering of goods.
Fleet/Carrier Management
Some TMS systems also let companies who run their fleet handle their fleet. Although the TMS will allow you to assign drivers, schedule vehicles, and manage dispatch. Well, it is not as strong as special fleet management software. If you use outside carriers, the TMS system lets you quickly identify pricing, track capacity, and choose the best carriers for every load.
Documentation Management
Often requiring several documents, forms, and compliance information, the transportation procedure can be paperwork intensive. To increase effectiveness, a transportation management system lets you automate various aspects of your document handling. It can be used to create invoices, fast-produce bills of lading, and handle cargo auditing. A TMS also makes it simple to provide pertinent import and export papers. This will guarantee trade compliance from your exports.
Tracking and Visibility
Access to thorough tracking data on the flow of products across the supply chain is one of the main characteristics of a TMS. Real-time updates regarding your goods can also help you better understand your carrier performance.
Managing Payments
Using a TMS can also help you effectively handle your payments among several carriers and vendors. After reviewing every carrier invoice, you can automatically pay when it is due.
Recording
The access to actionable reporting of a TMS is among its best features. In-depth analyses of the operations of your facilities and networks are available. This can then guide your optimization plans to lower expenses by raising efficiency.
Who Can Benefit from TMS
Generally speaking, companies that regularly need to move and receive physical commodities use transportation management systems most significantly. Primarily, this covers e-commerce enterprises, manufacturing companies, retail distributors, wholesale businesses, stores, and outside logistics suppliers.
Pros & Cons of a TMS
One can get a lot of advantages by applying a transportation management system. Before you choose to invest in one, though, you also have some things to weigh. Let us determine the main pros and drawbacks of applying a TMS.
Pros
- Simplify your supply chain’s monitoring and management whole procedure.
- It helps to reduce costs for the company and the final customer alike.
- Let automation help increase accuracy and efficiency.
- Provides improved supply chain visibility.
- It helps you keep trade compliance, reducing costly fines and shipping delays.
- Lowers late delivery and the need for hand labour to save time.
- Allows you to provide real-time updates and timely deliveries, enhancing customer experiences.
- It makes data and documentation sharing simple for other commercial partners and carriers.
Cons
- Getting quotes from several carriers and finding the best rate for every cargo.
- Many times, route management skills are restricted, leading to inefficiency.
- It is challenging to monitor several shipments
Essential Steps to Follow When Choosing a TMS
Now, the question is how to choose a reliable TMS! Well, we are here to guide you on it in the last section of our blog. Choose the finest TMS for your company by following these five steps.
Determine what your objectives are
You first must define your objectives. Think about what you wish the TMS to provide for you and the current problems you want it to solve. Initially, your goals should be somewhat broad. It would help if you focused on lowering transportation expenses, raising customer service standards, boosting efficiency, and improving visibility and profitability. Still, it’s always better to hone these and create more precisely measurable, quantifiable objectives. These guarantee that you are more concrete and clearly define your aim. It will enable you to evaluate whether you have reached them.
Carefully scope out your requirements
At this point, you have to compile internal data about your operation. Apply other factors to define your needs and thoroughly choose which capability you need. You should go through a thorough requirements-collecting process to create a list of the TMS features you need. Thus, you can rank things according to importance, stressing which are optional and necessary.
Evaluating platforms and providers
Assessing TMS providers and systems comes next. You have to find out which systems, within your means, possess the desired capabilities. You also have to consider the provider or firm running the platform. Investigate their background and experience. Please find out how long they have been in the company and their investment in the product. Review the sectors in which their clients work and study their case studies.
Get costs and evaluate the software
For those on your shortlist, it’s time to acquire some precise quotes. You also need to evaluate the software. Most vendors will allow you to test their software products. This might be a complete demonstration or even a free platform trial where you may utilize your data and samples.
Conclusion
Modern transportation management is essential for companies trying to maintain effective logistics. Although every software company offers unique solutions, a good TMS can give basic capabilities. Among the advantages of adopting a TMS are asset management, freight invoicing, carrier management, and other areas. Tachyon is a reliable digital logistics cloud-based tool for controlling transportation and logistics operations.
Frequently Asked Questions
Why do we need a transport management system?
TMS helps businesses choose the optimal mode of shipping or best carrier based on efficiency, distance and cost.
What are some significant capabilities of a modern TMS?
Significant capabilities of TMS include shipment visibility, route optimization, load optimization, carrier management, analytics and billing automation.
What does transport management deal with?
A transportation management system (TMS) uses technology to assist businesses in planning and executing the physical movement of goods, both incoming and outgoing.
What is the main objective of transportation management?
Transportation management systems enhance the supply chain efficiency by automating the shipping process.
