Transportation management system (TMS) has become the foundation of modern supply chain and logistics businesses.
TMS is a specially-designed software that helps you plan, execute and optimize the shipment of freight. TMS performs three main actions-
- Identify shippers and compare rates
- Book shipments at the lowest costs
- Track the shipment
TMS allows real-time visibility into the supply chain, improves shipping efficiency and cut back costs. You can increase the efficiency of your entire shipping process and improve customer service significantly.
Today, we will find out how TMS helps businesses ship and manage their operations efficiently. But first, a few words on the need for a transportation management system.
Why You Need Transport Management System in Logistics?
The modern customer doesn’t want to wait. You need to align your business to meet your customer preferences.
The logistics and supply chain business is witnessing high demand. Parcel deliveries are expected to increase by 17% to 21% each year between 2017 and 2021. Same-day shipments will be responsible for a 50% increase in logistics costs as a percentage of revenue.
On top of this, standards have been set by programs like Amazon Prime! How do modern logistics businesses ensure top customer service at cost-effective shipping rates?
Like most shipping companies, you can also implement a transportation management system to rise above the challenges. TMS is ideal for use by shippers, carriers and logistics providers and also utilized by other businesses like-
- Third-party logistics providers
TMS is now recognized as an enabler of global trade and logistics, helping your business achieve growth along the way.
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