The Ultimate Solution: Why a TMS is Vital for Your Operations

In order to run as efficiently as possible, it's important for manufacturers and suppliers to incorporate a transportation management system (TMS) into their daily supply chain operations. Not only does a TMS provide a significant return on investment (ROI), but it helps shippers cut freight costs and improve optimization across their company. Below we'll dig into the ways a TMS can help your company:

Accountability

A TMS is imperative for accountability measures within a company. It not only holds employees accountable internally, but also makes sure carriers are performing where they should. We’ll dig into reporting in a later point, but access to performance reports and compliance helps shippers identify trends and weak points for improvement. Having a robust TMS helps managers better understand their supply chain environment and where their employees and carriers should be performing.

Actionable Intelligence

Ever hear the phrase “you don’t know what you don’t know?” Well, think about it in terms of your freight management – how can you improve if you don’t know what truly needs improving? A TMS provides shippers with strategic reporting enabling them to identify areas of opportunity and improvement within a freight network; in other words, actionable intelligence. With a web-based platform at your fingertips, access to all your freight information including trends, history and upcoming shipments can be pulled up into a report within seconds. Need to know your cost/lb. or percentage of on-time deliveries? No problem. How about low-cost carrier compliance or volume by sale? A TMS can assist with this, too. Really anything you need to know regarding your freight, a TMS is able to report on instantly. Actionable intelligence not only helps shippers understand trends, but allows them to make smarter decisions every day and realize continuous improvements – which in turn saves money.

Increased Efficiency

A fully-featured, web-based TMS means data that is always available, 24/7. A TMS is crucial in terms of efficiency to maximize time and productivity. With a TMS, the carrier selection process is simplified – all your carriers are available with rates, transit times and history performance. Also, all your shipping locations are saved for you including location addresses, contacts, special notes, and accessorial requirements so all you have to do is type in the company name and the information auto-populates for you. In addition to locations, your product descriptions, NMFCs and freight classes can also be defaulted based on what you ship most – saving you time, which always translates to saving you money. Since everything is in one place for you, a TMS is a one-stop and “shop” database, which means no more comparing rates on different carrier websites and phone calls.

Visibility and Optimization

As noted previously, since all your shipments are in one central place, this means increased visibility and potential for optimization. Shippers can reduce freight costs further by uncovering opportunities to consolidate shipments. A TMS integrated with carrier web sites allows for shipment statuses to be updated in “real time,” including freight bill auditing, for improved customer service and actionable information. A TMS should be completely transparent, putting power and efficiency into the hands of manufacturers.

Contact Recon today if you’re ready for a customized and tailored approach to freight management. There’s no better time than the present to reap the benefits and cost savings potential of a TMS! See what we can do for you.