March 15, 2022
Rafi Kumruyan

Why You Should Upgrade Your TMS in 2022

Abstract

The following blog post will focus on . Throughout the article, we will try to answer the following questions:

What is a transportation management system (or TMS)?
Why is a TMS important for your business?
What makes a highly effective transportation management system?

About Deltologic

When reading online, especially when searching for valuable information, it is crucial to choose the right sources. Before we start, we would like to take a minute to introduce ourselves.

The information we provide you with is derived from real-life experiences in the covered topics. However, we could hardly cover all the valuable information you need to fully optimize a certain processes.

If you feel that a comprehensive consultation would make a difference, don't hesitate to contact us.

Introduction

In a parallel universe, where completely efficient logistics is accomplished, your company could fulfill your clients’ desires to the fullest while also delivering all value created - from ideation to execution.

No wastage of fleet capacity, no erosion of product or merchandise quality, no delay in shipments, errors in documentation and invoicing, no inventory shortages, over-stocking, nor any revenue loss from bad transport management.

Unfortunately, today we are not finding ourselves in this parallel universe.

The good news is that in 2022, we are getting closer to it. The perfect combination of the latest technological upgrades and a product market is driving us towards this topical idea of perfect logistics. One may simply integrate with the best tech-enabled TMS (Transportation Management System).

What Are Transportation Management Systems?

Transportation management systems, or TMS, are multi-module systems, characterized by the integration of multiple technologies which align a company’s order management, warehousing process streamlining, linehaul express tracking, freight capacity fulfillment, and on-time deliveries for all stakeholders. A TMS could also be described as the interlinking enabler of logistics movement between manufacturers, ports, distributors, wholesalers, stockists, hubs, retailers, and outlets. A large business could have more than a million shipments daily moving through this network. A technologically backed-up TMS could be of serious benefit to your business. Here are 5 reasons why.

Warehouse Management and Optimization

Many of the problems in transportation management originate from the starting point - warehouse or starting hub. Here, fleet capacity management and optimization are essential. The effectiveness of fleet management solutions can drastically increase the total utilized capacity in the process of loading fleets.

Such optimization at the first, loading stages can set up the following delivery management system very effectively. Capacity planning tools and expert automation, further supported by cloud technologies can fulfill utilization rates and save costs at hubs and warehouses.

Better Management via Delivery Routing Software

Delivery routing software can also help with directing your FTLs through the most appropriate routes in order to maximize delivery efficiency. This happens on two fronts:

Route Planning

Leveraging a machine learning-enabled system that uses predictive analytics enables the hub manager to plan the most optimized routes, avoiding unnecessary traffic and weather-induced delivery delays while avoiding areas prone to inclement weather that would affect the merchandise.

Dynamic Route Management

Dynamic Route Management and alerts enable on-the-second route deviation alerts when a vehicle is detained for more than a standard time or if any service level agreement is being violated (i.e., nighttime driving). This way, the hub manager’s reaction time is way faster compared to in a case of no tech-backed TMS usage.

On-road Fleet Tracking

Live express tracking allows managers to know exactly where each on-road fleet is located, as well as its movement statistics. Whenever a shipment passes the checkpoint, that’s preset by the hub manager, an alert is sent. Precise geo-coded tracking data that’s backing up live logistics management helps managers also keep track of the temperature and quality of sensitive merchandise.

Through such an accurate linehaul express tracking, hub managers can plan for the exact time when the shipment would arrive. This helps with planning both the offloading workforce and further processing. Such knowledge helps align work hours and ensure complete resource utilization.

Build on The Best Delivery Management Software

A sophisticated TMS system with the perfect delivery management software can enhance efficiency and productivity across fleets and merchandise movement. Precise ground-level information (i.e., live driver behavior analysis such as speed variations or large detention times), and in-transit merchandise quality mapping (i.e., temperature and shelf-life tracking) can make a serious difference when directing resources and fleets to their full potential.

Collating all this information can become tedious when dealing with a large number of shipments. Some transportation management system enablers (i.e., LogiNext) offer a very good vantage point solution for logistics tracking, whereas a manager can use a single dashboard to view all fleet movement and become actionable insights in real-time.

Comprehensive Analytics and Reporting

Budget planning for transport management requires sophisticated logistics capacity and resource planning. TMS solutions help businesses track and analyze all movements. This way you could ascertain how many total resources would be needed and at what capacity and at what point in time. Further, TMS solutions help with analyzing the service level agreement compliance of third-party partners and vendors in order to better negotiate a fruitful future service deal.

On the other hand, demand analysis across distributors, stockists, outlets, and retailers supports better planning schedules and replenishment plans for their merchandise. This ensures that their products are available for the right customers, and at the right time, which increases the overall customer satisfaction around their brand.

Overall, new-age tracking and analytics packed within a TMS can help increase your market share and customer retention within a single quarter.

If you are curious about how to upgrade your TMS, make sure to reach out at contact@deltologic.com to see how we can help you optimize key business processes using the latest technologies.

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