Transportation Management Systems Lower Costs And Increase Efficiency

Escalating costs and razor thin margins are creating ever increasing demands for companies to operate as efficiently as possible, whether they are Truckload Carriers, Freight Brokers, or Outsourced Logistics Providers.

A transportation management system (TMS) is a solution that helps companies that move freight to optimise their operations.  The software contributes to critical business drivers such as productivity, scale, customer experience and cost savings.

Choosing the right TMS solution can be an extensive process, and there are a number of factors to consider. As one of your business's most important systems, it's critical to weigh all variables to make an educated decision. The solution must have the flexibility to adapt to your unique business complexities and enable you to work creatively to achieve company objectives.

This article enlists the key operational functions a TMS can improve:

 

Order management

Ensuring a quality process begins with quality information in a timely manner while at the same time being cost effective. A TMS will integrate with your current EPR and WMS to streamline order bookings and visibility. Moreover, the system will increase data accuracy and reliability, reducing the occurrence of duplicates and errors.

Additionally, some TMS solutions feature an EDI engine that enables you to receive orders directly from your customer electronically.

 

Load and route optimisation

The TMS can increase operational efficiency and further reduce costs by handling dock schedules, appointment and load / unload times to ensure your fleet operates at the lowest possible cost and always on time, every time.

When economies of scale present the opportunity for freight consolidation, a TMS offers an optional integrated load optimization to automate the process of load planning to ensure the highest utilization at the lowest possible cost (trucked or brokered).

 

Dispatch for carriers

A TMS automates the entire dispatching process from appointment management, through load and route planning to email notifications of delivery, ensuring your customers goods are delivered on time.

Access to historical and current data also allows for better reporting and consequently more meaningful carrier performance evaluation.

 

Tender freight with minimal manpower / reduces customer service costs

One of the most significant improvements a TMS offer is automating carrier tendering and selection. The selection of a freight provider is usually done based on who can provide you with the best service at the most competitive price - “Best value for your freight spend”. By removing manual elements such as phone calls, faxes, and human data entry, your company can ship more freight, more accurately and at higher margins.

Moreover, a solution like HighJump’s TMS provides you with a rules-based engine that determines what carriers the freight should be tendered to and in what order and what style of tender (lowest cost, first acceptance etc.) your carriers are notified of tenders by email and they can accept or reject online without you having to ever pick up the phone. Once accepted, your carriers can provide web updates for pick up, last known position, and ETA as well as for delivery with reason codes for lateness; available 24 hours a day, 7 days a week.

 

Real-time tracking

A TMS system provides the ability to view shipment history, costs, last known location and full document imaging. An online portal allows your customers to access real-time information on the whereabouts of their goods.

The solution will equip you to operate faster, better, and more reliably while providing the real-time, detailed insight that minimizes problems and maximizes revenue generation and profitability. It empowers you with automated tools to optimize the expertise of your people, reduce the amount of manual effort and inquiry, and exceed performance expectations

 

TMS overcomes 3PLs unique challenges

Third-party logistics companies often manage multiple clients’ stock within its warehouses. Each of their clients has its own unique requirements on how to store, handle and deliver their goods.

For example, you might have different pricing models agreed with each of your customers. Usually, a 3PL’s customer gets charged a monthly recurring storage charge as well as extra fees for receiving goods and shipment handling. Just as there are unique pricing models for handling goods in the warehouse, there may also be specific rules on how to distribute these goods.

The rules of engagement for logistics transportation services in a 3PL environment are widely varied. Some customers do not need freight services, some may be heavily reliant on the warehouse providing them.  Each customer may have their own proprietary rules on carrier selection and assignment. Compound this over multiple customers, and it can become a very complex and daunting operational feat.

 

HighJump TMS

HighJump’s Transportation Management Solution offers a broad range of modules to accommodate the growing needs of companies who are looking for a software solution to manage their freight distribution needs. HighJump’s proprietary building block approach allows us to offer just what your transportation or logistics business needs, when you need it… with plenty of room to expand into new areas!

Our TMS delivers capabilities to assist you in all facets of your transportation needs and offers the ability to leverage other related tools and features, all within the same web interface.

Don't get overwhelmed by the quantity of TMS's in the market or the sheer volume of information. Download HighJump’s latest TMS Request for Proposal (RFP) Template, to help you cut through vendor bias and get to the heart of what you need.

With the HighJump platform, iWMS Australasia can offer your business a tailored, configurable and scalable solution that will meet your exact business needs today and for years to come. Contact us today to discuss your business requirements.

Watch the full HighJump TMS video demo here.