In the world of freight transport, the organization of logistics and supply chain management are key elements of success. To optimize these processes, many companies already use a technology, the transport management system or Transport System Management (TMS). Are you still hesitating about the relevance of using a TMS for logistics and your entire supply chain? These few advantages should convince you.
Context: TMS, a particularly effective use in the Supply Chain
The Importance of Supply Chain Management
The management of the Supply Chain is a major issue for companies wishing to distribute their products efficiently. A well-thought-out Supply Chain:
- Facilitates the management of different distribution channels
- Allows you to extend your distribution internationally while respecting transport standards
- Provides accurate tracking of goods
These are all ways to gain on three counts: efficiency, profitability, and competitiveness.
The expansion of TMS
As shown by the firm Xerfi in its study on the Supply software market Chain by 2026, this sector is growing, stimulated by:
- The resilience of international trade
- The growing complexity of supply chains that demand greater relevance
- Increased adoption of Internet of Things (IoT) technology and data analytics by businesses
TMS solutions cover a wide range of functions at the heart of the Supply Chain, from production planning to inventory management, transport, orders or even warehouses. All this, for different market segments, both small and medium-sized enterprises (SMEs) and large groups.
The TMS thus stands out as a global and modular solution, to which are added additional services, starting with advice and technical support. These are all other benefits for supporting the management of change and the appropriation of tools.
Benefit n°1: Streamline and optimize transport processes
The main challenge for Supply Chain professions - Supply Chain Manager or Logistics Manager - is to anticipate all hazards and reduce them as much as possible. Today, it must also limit its environmental impact. On all these subjects, the first advantage of the TMS is to rationalize and optimize all transport processes.
In this way, it provides a detailed overview of the supply chain, from planning shipments to final delivery. Therefore, it becomes possible to plan operations more efficiently and to optimize, at the same time the rational use of resources.
In addition, equipping yourself with a TMS also has the effect of optimizing the choice of carriers, by evaluating different personalized criteria, for example according to the prices and services offered.
Benefit n°2: Reduce costs
Most companies, especially in times of crisis, seek to protect their cash flow. This is where a TMS comes into play, its accuracy automatically reduces logistics and transportation costs.
By choosing the most competitive carriers, best able to meet their needs, by eliminating empty runs and other waste, companies save money and increase their level of profitability. Added to this, is a better customer experience thanks to the respect of delivery times.
Benefit n°3: Limit errors
A TMS is also part of a process to reduce errors and delays in the supply and delivery chain. Thanks to the automation of processes and the visualization of information in real time, companies find a real screen against the risk of human errors, in particular data entry, delays in deliveries.
Once more, customer satisfaction is improved as well as the overall management of the Supply Chain.
Benefit n°4: Improve warehouse management
Warehouses also benefit from the TMS, which has the other functionality of inventory management and all the organization of the goods before their departure. The software provides precise information, whether it’s on delivery times or stock levels.
Companies then plan their operations in a more relevant way, which avoids delays or overstocks. At the same time, this also reduces storage costs here.
Obtain key indicators (KPIs)
To ensure you hold all the cards over the long term, and to control the effectiveness of new processes, a TMS provides you with advanced reporting and analysis functionalities.
You can monitor and optimize your transport and logistics operations in real time. The reports generated by the TMS are indeed a wealth of valuable information on transportation costs, transit times, inventory levels, carrier performance, and more.
Your continuous improvement will be all the more relevant!