5 Top Benefits of Getting a Tech Upgrade for Your Transportation Management System
In a logistically efficient utopia, your company would be able to fulfill all client and customer desires up to perfection while delivering the complete set of created value right from the ideation to execution. There would be no wastage of resource and fleet capacity; no erosion of product or merchandise quality; no delay in shipment receivables; no errors in documentation and invoicing; no inventory shortages or over-stocking; and no revenue loss due to mismanaged transport management.
The bad news that this utopia hasn’t become a reality as yet.
The good news is that the perfect fit of product-market with the latest technological upgrades is here to take you closer to this utopia that ever before. All you have to do is integrate with the best tech-enabled Transportation Management System!
So, What is Transportation Management System (TMS)?
Transportation management system (TMS) is the integration of multiple algorithms and technology systems which align a company’s order management, warehousing process streamlining, linehaul express tracking, freight capacity fulfillment, and on-time deliveries for all stakeholders. Imagine TMS as being the interlinking enabler of logistics movement between manufacturers, ports, distributors, wholesalers, stockists, hubs, retailers, and outlets. A large company has more than a million daily shipments moving through this network. Some of the carrier freights are self-owned by the company, some are rented from vendors, and others (fleet management) are outsourced to third party logistics partners. TMS with superior technology back-up can be the greatest boon for your company. Here are the top 5 benefits that can transform your transport management.
Fix the Start: Warehouse Management and Optimization
Many of the struggles in transportation management originate from the warehouse or starting hub. Here, fleet capacity management and optimization are the need of the hour. An effective fleet management software can increase the total capacity utilized while loading your fleets.
This means that your Less than Full Truck Loads (LTL) can be turned into Full Truck Loads (FTL). This consolidation of space can save you up to 15% in your resource costs while boosting your resource utilization up to 80%.
Recent studies indicate that such optimization at the loading stage sets up the following delivery management system quite effectively. Expert automation and capacity planning tools perfected through cloud based technology can fulfill these utilization rates and save costs at all hubs and warehouses.
Manage Better with Delivery Routing Software
Delivery routing software helps you direct your FTLs through the appropriate routes maximizing your delivery efficiency. This happens on two fronts:
Route Planning: The hub manager plans the routes leveraging a machine learning enabled system using predictive analytics to create the most optimized route avoiding unnecessary traffic and weather-induced delivery delays (avoiding areas prone to inclement weather that would affect the merchandise).
Dynamic Route Management and Alerts: Immediate route deviation alerts when the vehicles are detained for more than a standard time (benchmark set by the hub manager) or if any service level agreements such as night time driving are being violated. This means that the hub manager’s reaction time goes down to a fraction of the original time (without tech-backed TMS).
Watch Where You Go: Linehaul Express Tracking
Live linehaul express tracking helps the managers to know the exact location and movement statistics of each on-road fleet. Every time the shipment passes a checkpoint (preset by the hub manager), a tracking alert is sent to the manager. Live logistics management with the use of precise geo-coded tracking data points helps the manager keep track of not just the delay or route deviation, but also the temperature and quality of sensitive merchandise.
Moreover, through such accurate linehaul express tracking, intermediary hub managers (intermediary or destination hub) can plan for the exact moment when the shipment would arrive. This helps them plan their workforce for offloading and further processing. Such knowledge helps them align their work hours of their teams at the intermediary hubs and ensure complete resource utilization.
Build on the Best Delivery Management Software
An expert TMS with the perfect delivery management software can boost efficiency and productivity across fleets and merchandise movement. Through precise ground-level information such as live driver behavior analysis (irregular speed variations or large detention times) and in-transit merchandise quality mapping (temperature and shelf-life tracking) helps the manager direct the resources and fleets to their full potential.
With a million shipments, collating all this information can become tedious. Hence, some leading transportation management system enablers such as LogiNext offer the perfect vantage point solution for logistics tracking. The manager can view all fleet movement through a single dashboard perfected to offer actionable insights in real-time.
Knowledge is Power: Comprehensive Reporting and Analytics
Logistics capacity and resource planning is a big part of budget planning for transport management.
- TMS helps companies track and analyze all distribution movement to ascertain precisely how many total fleets resources would be required and at what capacity and time.
- Further, it helps analyze the service level agreement compliance of all third-party logistics partners and vendors to better negotiate a fruitful service deal with them in the future.
- Demand analysis across retailers, outlets, stockists, and distributors helps the company to plan the schedules and replenishment plans for their merchandise better and ensure that their products are available for the right consumer at the right time, increasing the overall customer satisfaction around their brand.
Transportation management system, handled through new-age tracking and analytics, can boost your market share and customer retention within a single quarter.