How a TMS Can Help Transportation and Carrier Companies Improve Efficiency and Reduce Costs?

  • 25 May 2023
  • 6 Min Read

‘Logistics is the lifeline of a business; the assurance of last mile connectivity always cheers a consumer and gives them a reason to come back!’

Transportation Management System is an automated platform allowing an overview on different modes of transportation via waterways, roadways, or airways or a strategic combination of two or more types for the purpose of order fulfilment. Post pandemic, business is neither strictly limited to brick ‘n’ mortar nor has remained online, the fine line of difference between the two seems to have evaporated for the consumers. The challenge is with blended business operandi, logistics services require to be more comprehensive that offer secure, timely, damage-free delivery of orders pouring-in with varied instructions.

With B2C & B2B on the roll, dependency upon transportation is witnessing a new milestone, wherein live tracking of movement of an order provides peace of mind to consumers and retailers both. This is mostly because businesses are not merely catering to local markets; their scope has widened and they are no more hesitant in targeting global consumerism.

TMS is a logistics software, which support seamless working of supply chain system by providing information through a single window. The software is unique and versatile as it can monitor every minute detail concerning movement of a shipment whether inbound, outbound or within the geographical limits of a country or beyond. It gives real-time update on freight movement through various transportation modalities, and helps in surveillance of the goods on move. The cutting-edge features of the TMS software can be a business changer for transportation and carrier companies as they can improve efficiency and bring down costs, once access to data is available for last minute planning even at a short notice.

TMS software does not work singularly, it is conditioned to integrate and process data shared by department APIs. It cleans, filters and configures a flow chart that would be useful in middle mile, network distribution, yard management, even driver performance, optimization of shipping operations, track & trace the cargo including legalities involved in freight movement irrespective of its size and region from which it is passing.

Key Advantages of a Transportation Management System

1. Optimized Routing and Dispatching

For any transportation and carrier company, main concern is how to bring down delivery cost for the benefit of both the company and the consumer, to get repeat customer and increase the customer base as well. Check this, dispatch for logistics department, refers how quick an order can be released from the hub and reach its destinations at the minimum cost. It checks the distance between a nearest warehouse and the consumer, logistics services to be adopted for order fulfilment and also takes into consideration cost of logistics partner.

TMS software which is a part of larger supply chain system, allows autonomous filtering of facts for creating efficient and cost-effective routing and dispatching methodology. Take for instance, the movement an order is received, it minimizes distance between hub and the destination by connecting with centralized order management system. Without manual involvement, it takes the delivery team to the nearest warehouse, shows various options for quick & cost-effective ways of cargo delivery by connecting with other logistics partners for optimizing routing and dispatching work.

The automated TMS, communicates effectively to streamline order priorities as time, routes, traffic and schedule of delivery. Once these are handled effectively, human resources could be channelized in other R&D work as money that could have been required in fuel and managing delivery partners is now better utilized.

2. Improved Carrier Management

Logistics can turn out to be a spoiler in this competitive market. If a company wishes to score well with the target customers, it must find ways to lower the cost. Earlier, when TMS solution software were not available, checking rates with logistics partner, then comparison of rates was done manually, it involved both time and money, plus, there was no guarantee for authentication of collected data. But with smart integrated mature carrier management software, rates are displayed at one dashboard; a comparison between logistics partner can be made; costing involved in middle and last mile connectivity can be assessed, with constant view on the chain of custody, prior cost-effective transportation solution could be planned and more such critical decision related with carrier contracts, driver performance and tracking of carrier performance can be easily done as these are continuously updated due to automation at each level of operation.

Improved carrier management empowers a business to better control contract management, carrier rates, multimodal transportation and order management during transportation. With UI updates, it becomes manageable to handle multi-leg multi-carrier transportation of a shipment at a cost-effective rate.

3. Real-Time Visibility

Modern technology with AI (Artificial Intelligence) and IoT (Internet of Things), and integration of APIs, SaaS and others have leveraged logistics professional as they now can have real-time visibility of shipment movement. Over the years, transportation and carrier companies failed to deliver up to their capabilities as they had no way to tabulate information and manage shipping operations as most of the work was handled manually.

TMS has brought a sea of change and has improved overall efficiency. With real-time location detector, carrier companies can predict maintenance of fleet and bring down fuel consumption, as they have continuous status updates.

The biggest advantage of TMS solution is, it allows real-time freight analytics, which assists logistics professionals to make proactive decision and optimize route at a minimal or at a lesser cost. Real-time visibility of freight movement helps shipping operations because logistics team has sufficient information at one place on traffic patterns, local carriers, routes and others. With automated system, data can be analyzed and used for sending alerts about delays, or restriction in movement and more concerning cargo movement. This improves efficiency, reduces cost and also provides enough inputs on demand trends. Continuous streaming of data through automated system allows better shipping operations, help in rerouting wherever required, schedule adjustment and other decision that can optimize efficiency of transportation and carrier companies.

4. Automated Invoicing and Payment

Invoicing and payment are always susceptible to errors and lead to legal problems. This was quite common with traditional auditing system for freight management. Invoice contains complete address of the shipper, carrier and the recipient along with details about shipped cargo. It also contains fuel surcharge, logistics costs and other shipping operations incorporated in order fulfilment. Earlier logistics services including invoicing and payment were done manually, which invited scrutiny and made auditing a tough task.

With automated invoicing and payment system leveraged by TMS software, refinery of invoicing has become quite easy. Through a single platform, addition in cost get real-time updates, making it possible for shippers and the carriers to guarantee themselves against any financial faults and penalties which can accrue due to wrong billing. This streamline invoicing and payment system for the convenience of both the shippers and the customers. By minimising errors, the transportation and carrier companies can improve their efficiency and reduce costs as duplication of transportation cost, delay cost, etc can be managed.

The automated invoicing and payment of TMS solution ensure there is no flaw in the supply chain management. If ever there is, then by freight bills can be used as legal contracts and correction can be made without delay. Take for instance, a consumer has placed an order for a particular brand of washing liquid but receives another product. On the basis of bills which contains order id, information can be backtracked and traced for verification of the claim made by the consumer. If found correct, then on time compensation can be made for solidifying customer relation.

Advatix Cloudsuite™ Logistics

Advatix Cloudsuite™ Logistics is a 100% cloud-based solution that revolutionizes transportation management. It offers end-to-end visibility, multi-modal optimization, and real-time tracking, resulting in reduced transit times, improved reliability, and lower costs. Say goodbye to inefficiencies and embrace streamlined logistics with strong>Advatix Cloudsuite™ Logistics.