Logistics managers are used to multi-tasking. Every day, you’ve got to navigate rising shipping costs, tight delivery schedules and complex regulations—all while keeping customers satisfied. Without the right tools, routine tasks quickly start to pile up.
That’s where a transportation management system (TMS) can help. It automates, optimises and streamlines your processes, giving you the control and visibility you need to tackle these challenges. If you’re looking for ways to handle your logistics more efficiently, this article covers all the advantages of using a TMS and how to choose the right solution for your business.
What is a TMS?
A TMS is a software platform that serves as a central hub for all your shipping activities. It allows you to plan, execute and monitor all aspects of your shipping in a single place.
The most effective TMSs offer multiple useful features, including:
1. Route planning and optimisation
With fuel costs fluctuating and delivery expectations growing tighter, route optimisation is essential. Transportation management software helps create the most efficient routes, taking into account variables like traffic, fuel costs and delivery windows. This results in faster delivery times, lower fuel consumption and lower costs.
2. Shipment management
A TMS gives you full control over your shipments. It lets you track each delivery in real-time, monitor cargo status and receive alerts if something goes wrong. This kind of visibility allows you to respond faster and more proactively in case of delays or rerouting.
3. Cost and rate management
By offering you side-by-side rate comparisons for different carriers, a TMS helps with transportation cost reduction. It can even automate carrier selection based on your predefined criteria like delivery times or fuel costs, giving you better financial control over your logistics.
4. Compliance management
Transportation management software streamlines compliance by automatically generating and storing required documentation, such as shipping manifests and customs forms. It also provides access to carrier safety records, ensuring you choose partners who comply with regulations like HGV driver hours, vehicle safety checks and industry- or country-specific shipping laws.
5. Analytics and reporting
A TMS gathers data on key performance indicators like fuel usage, delivery times and route efficiency, providing insights that help you continually optimise your operations. With a data-driven approach, your company is better equipped to reduce fuel consumption, optimise routes and cut emissions.
Can your company benefit from using a TMS?
A TMS benefits businesses of all sizes, from SMEs seeking to simplify management and cut costs, to large enterprises needing greater visibility and control over complex transport operations. It can be customised to meet your industry’s specific challenges, whether you operate in retail, manufacturing, food and beverage, distribution or beyond.
If you’re not sure whether a TMS is the right solution for your company, consider the following common challenges. Do any of these sound familiar to you?
- You need to lower your shipping costs. By calculating fuel-efficient routes and automatically comparing carrier rates, a TMS helps reduce expenses like fuel costs, fees and overcharges from less efficient carriers.
- You lack real-time visibility into your shipping. With automated alerts, a TMS gives you real-time transportation tracking, so you’re always operating with the latest information available.
- You’re struggling to keep up with customers’ delivery demands. Accurate ETAs and automated notifications help you give your customers timely updates, reducing complaints about late or missed deliveries.
- Manual processes take up too much time. Instead of manually selecting carriers or tracking shipments through spreadsheets or emails, a TMS offers shipment automation workflows that reduce the risk of errors and speed up daily tasks.
Your company is ready to scale its shipping activities. As you expand, a TMS can handle increasing volumes, from organising multi-leg international shipments to managing multiple carriers without adding complexity.
How to choose the right TMS
When considering which TMS to choose for your business, be sure to keep the following factors in mind as a minimum:
- Will the solution integrate with your existing systems, like your ERP or WMS, to ensure seamless operations?
- Is the solution easy for your team to use, and is strong customer support available?
- Can it be customised to meet your specific needs?
- Will it scale as your business grows?
- Does it ensure data security and meet regulatory compliance standards?
Ready to optimise your logistics management?
A TMS is a powerful business tool for simplifying logistics, improving efficiency and cutting costs. Whether you need better visibility, process automation or scalable solutions, the right TMS gives you a one-stop solution for modernising and streamlining your transportation management.
Want to learn how our TMS can transform your logistics? Get in touch with our experts and request your free demo today!
