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Using less-than-truckload for medium-sized shipments is one of the great innovations in shipping. It produces results at a fraction of the cost of full truckload (FT) or small package shipping. However, the needs of the modern shipping industry have reached an optimal point, and the only way to further push the envelope is by using a dedicated transportation management system (TMS). Take a look at some of the most important ways the ideal TMS impacts an operation.

1. The Ideal TMS Helps Complete Warehouse Management.

A poorly functioning warehouse is tantamount to a poorly functioning supply chain. The ideal TMS can maximize the efficiency of a warehouse and directly affect inventory management. As a result, the amount of inventory can be managed to reflect the consumer demand.

2. Reduced Training Costs.

Training new hires is the highest cost associated with new employees. The ideal TMS allows you to see where your resources currently are, and forecasting abilities give you the ability to determine what resources are available to train new hires. Moreover, the one-stop management capabilities of the TMS streamline the training process. New hires only need to learn how to use one system.

3. Greater Selection of Carriers.

When more carriers are available for use, the cost savings increase. The TMS compiles all available carriers into one resource, allowing you to select the most competitive, timely carrier for your shipment. As a result, you can make sure you use the most cost-effective carrier for your needs.

4. Freight Consolidation.

Sometimes, the lines between FT and LTL are blurred, especially when all LTL shipments are compiled into FT via freight consolidation. This matters due to lower costs associated with FT when enough shipments are available. The TMS combines LTL needs to produce FTs when possible.

5. Integration With Existing Systems.

Your existing systems are probably outdated, but your TMS should be able to integrate with your existing system. Moreover, some TMS providers can completely replace your existing system, making overall management easier and faster.

6. Stronger Control of Cash Flow.

Cash flow is one of the most important aspects of a successful business. With resource insight and allocation via a TMS, you can control your cash flow in greater detail and with greater accuracy.

7. Real-Time Performance Measurement.

It is hard to monitor the performance of employees in today’s global economy. Since the TMS connects to the Internet, the performance of all employees can be tracked and analyzed in real time. As a result, you can identify areas that need immediate improvement.

8. Stronger, Higher Level of Customer Service.

Better customer service means always satisfying the customer’s expectations, which include fast delivery, quick processing of returns and questions about your product or service. The TMS puts information at the disposal of customer service representatives, empowering employees and ensuring every customer’s complaint or need is handled timely and appropriately.

9. Access Across an Organization.

Access to the TMS is available across an organization, reducing organizational silos and forming a more cohesive supply chain. Furthermore, enterprisewide access enables all members of an organization, from stakeholders to seasonal workers, to understand their roles and responsibilities. The benefits increase when deployed industrywide as well.

10. Optimization for All Employees’ Duties.

An organization operates better when employees know what needs to be improved. The ability of the TMS extends to the optimization of workflows and duties within individual parts of the shipping network, promoting better execution and completion of duties.

11. Contract Negotiation.

Contract negotiation is becoming a major factor in shipping. The TMS allows an organization to see what rates are available immediately, allowing for more informed contract negotiations.

12. Access to Intermodal Shipping Options.

Sometimes, LTL is not the best choice, but knowing what mode shipping is most cost-effective is the only way to ensure the best choice is made. The ideal TMS combines all intermodal shipping options to ensure your needs are met appropriately.

13. Rapid Expansion.

Growth is evitable, and the TMS can enhance expansion needs, such as hiring more employees, accessing new markets and planning of new facilities’ locations.

14. Maintain Compliance and Visibility.

The ability of the TMS to provide real-time insight into operations, in conjunction with auditing features, improves visibility and compliance with authoritative measures.

15. Rapid Implementation.

The TMS is easy to implement when compared to legacy systems of the past, further reducing training costs and delays from learning updates.

16. Increased Responsiveness by Staff.

Staff members who know what is going on within an organization can identify what operations are the most time-sensitive, reducing unnecessary delays and costs.

17. Increased Security of Information.

The security of customers’ data and information about a company is of top priority in modern shipping. The ideal TMS reduces security concerns by keeping all information in a secure, highly protected area of the cloud.

18. Stronger Competitive Advantage.

The TMS builds a competitive advantage against shippers and organizations who have not implemented such policies. Furthermore, lower cost of SaaS forms of TMS systems is helping small businesses gain a competitive advantage against bigger organizations.

19. Simplifies Reporting to Stakeholders.

Dashboarding capabilities in the TMS allows management to compile reports and information for stakeholders more easily. In addition, the information can be transmitted directly to stakeholders when they log in to the system.

20. Reduces Errors From Manual Entry of Information.

Automation is a symbiotic component of a TMS. As a result, errors from manual entries are reduced, increasing profitability and efficiency.

21. Data-Driven Decision Making.

A TMS enables data-driven decision making, which reduces inconsistencies and problems, especially as it relates to change management. Moreover, an organization can become proactive to potential problems, which enhances risk management and overall production.

22. Mobile Access to KPIs and Metrics.

The legacy systems of the past are practically inaccessible to the mobile worker. Modern TMS applications are designed with a mobile-friendly environment in mind, which helps an organization maintain accountability and adoption of the system from any location.

23. Applicable to Organizations of All Sizes.

The advent of the cloud and SaaS capabilities have given modern TMS providers the ability to reach an unparalleled market share. As a result, the benefits of deploying a TMS are applicable to organizations of all sizes, regardless of growth patterns and forecast predictions.

Gaining the most from a TMS is one of the best ways to reduce costs, boost production and ensure all parts of an organization work together seamlessly. While its key benefits revolve around LTL freight shipping, the ideal TMS actually results in a wide array of benefits for an organization, which apply to all positions from CEOs to custodial workers.

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