Integrated Logistics Insights

A Transportation Management System that Reduces Costs

Transportation Management

Transportation management systems (TMS) are a crucial piece of the logistics puzzle. By swapping in automated processes for manual efforts, these platforms help streamline transportation operations and deliver cost savings. In fact, according to a 2016 TMS survey, transportation management systems provided respondents with an approximate freight savings of 8 percent.

As TMS software continues to mature, businesses have more features at their fingertips to effectively manage the supply chain. This translates into greater freight savings that can make organizations more profitable in the long term.

It all starts with choosing the right transportation management system.

Here are the most important factors to look for in a TMS.

Reduce Freight Costs with the Right Transportation Management System

Easy to Implement

While designed to improve processes, a transportation management system that is difficult to implement can easily create roadblocks. Businesses struggle to reap the benefits of their new investment, while employee frustrations and nerves mount over the new technology.

That’s why it’s so important to find a TMS that is easy to implement. When the software can integrate with current systems and operate at efficient speeds, companies are better able to reduce costs at early stages of the transition and gain employee buy-in that facilitates long-term goals.

Provides Transparency

As supply chains become more complex, businesses are looking for greater visibility of freight shipments. But, as noted in a recent survey from Gatepoint Research, only 19 percent of executives reported having end-to-end supply chain visibility. Further, only 54 percent were somewhat satisfied with their current level of visibility into the supply chain.

The key is to find a TMS software that provides the necessary transparency and control over transportation operations. From tracking and tracing shipments to monitoring freight audit and bill payments, companies have the resources they need to balance the management of expenses with quality of care.

Offers Customized Reports

Data is a powerful tool for analyzing transportation trends and planning actionable improvements. While data may be stored in systems, it’s important that a transportation management system gives you the tools to leverage it in a useful way.

Customized reports make this possible. With the ability to break down different sets of data, relevant information can be easily shared with different departments, allowing them to identify areas for improvements and set benchmarks for the future.

Choosing the Right Transportation Management System

When it comes to reducing freight costs in the new year, the right transportation management system can make all the difference. The key is to look for features and functionality that help maximize your efficiency and minimize costs.

At IL2000, we provide you with the visibility and control you need to do just that. Our easy-to-use software helps organizations in various industries save money, increase productivity and streamline distribution operations. Contact us to learn more about our services.

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