If an enterprise has processes that convey goods, whether they are raw materials, or intermediate or finished products, they have to manage routing, scheduling, load building, carrier management, and other logistics concerns. To make sure that these processes are optimized, a transportation management system (TMS) software is useful.
According to a study by Logistics Management three years ago, only 35 percent of organizations who ship use the supply chain management system subset. But the adoption of TMS has increased recently because of its benefits to organizations, such as the following:
Image source: yourshippingsource.com
TMS can be integrated seamlessly with other systems that an organization already has in place, and these include warehouse management, inventory management, customer relationship management, supplier relationship management, and more. Meeting transport demands can be done without having to disrupt the current practices.
When transportation efficiency is not given emphasis, possible costly errors may arise. With TMS, some logistics and transportation operations can be automated, which can reduce human errors caused by manual procedures.
A TMS can be designed to provide extensive business insights, transport intelligence, and reporting capabilities. These data can then be utilized by the organization to enact essential changes in the operations to enhance transport services and reduce costs.
Image source: supplychain247.com
Eddie O’ Brien is the CEO of the Americas at Arvato Bertelsmann, where he has been instrumental in the development of numerous BPO services and financial and IT solutions. Mr. O’ Brien also held various executive positions at Microsoft and other multinational companies. For more information about him, visit this website.