There is no industry that has not been affected by digital technologies and artificial intelligence, and logistics is no exception. Modern transportation no longer requires manual calculations, as most processes are already automated thanks to special software.
What is a TMS system and how does it work?
A TMS system is software that simplifies the management of logistics processes. Its full name is Transportation Management System. It covers every stage of delivery: from route planning to transportation itself. Thanks to TMS, everything happens automatically and structurally, which virtually eliminates human error.
Main functions of a TMS system
It is inconvenient to control transportation, documentation, and payments when everything is located in different tables and programs. The TMS system combines all data and analyzes it itself.
Route planning
Logistics software is an indispensable assistant in developing optimal routes. It automatically plans the transportation schedule, taking into account distance, cargo weight, road congestion, weather conditions, etc. In the interface, it looks like a world map in which TMS plots the route, taking into account all stops and customs delays.
Automated planning will not only speed up delivery but also help reduce fuel costs and vehicle depreciation. This way, trucks will operate at maximum efficiency, without “empty runs” and downtime.
Cargo tracking
GPS tracking of trucks and containers provides transparency and control. Managers can always see where the goods are and what is happening with them, so they don’t need to constantly call the driver and send dozens of messages. The TMS system also instantly alerts if there is a deviation from the route or unauthorized opening of the container.
Modern software will relieve managers and logisticians, as customers will be able to track their shipments online and receive transportation data via SMS, email, or messenger.
Document management
The logistics system for transportation eliminates unnecessary paperwork and generates the necessary documents for the trip itself: CMR, waybills, cargo labels, packing lists, etc. If changes need to be made, it is much easier to edit an already formed document than to do everything from scratch.
Automated documentation reduces the risk of errors that lead to fines, confiscations, and delays at customs.
Analytics and reporting
Simplifying operational analytics is one of the strongest features of the software, as it automatically generates reports on the cost of shipments and the quality of their execution. It will be much easier for management to identify logistics “weak spots” such as overpayments, average delivery times, and fuel costs.
The AI-powered TMS system will automatically generate comparative reports by period on the number of orders, complaints, and flights. It will then use these indicators to generate forecasts for load and rates, as well as a sales and service strategy plan. This eliminates the need to spend time manually filling out Excel spreadsheets, reconciling with carriers, and verifying signatures.
Advantages of implementing TMS for logistics
Large international companies often create customized software, but you can also purchase or rent ready-made solutions: SAP, Oracle, CargoWise, Transporeon. You can also subscribe to an existing system and supplement it with your own templates, analytical modules, and customer services.
The TMS system can be easily integrated with:
- WMS – a warehouse management system;
- MRP – a material requirements planning system;
- CRM – a customer relationship management and sales management system;
- POS – a point of sale system;
- ERP – an information system that optimizes accounting, human resources, procurement, etc.
In leading corporations, the TMS system can be integrated directly with customs, which significantly speeds up customs clearance of goods and communication with inspectors. However, even for small companies, there are now plenty of flexible solutions to get started.
When using TMS, fuel costs are reduced by approximately 10-20%, and savings on the company’s total transportation costs reach 20-35%.
Who is the TMS system suitable for?
The TMS system is not only necessary for large companies with a constant flow of cargo. Small and medium-sized businesses should also invest in TMS, no matter how limited their budget may be. In the future, using TMS will reduce the time it takes to process and deliver orders, which will definitely increase competitiveness and profits. The more customers, routes, and shipments you have, the greater the benefits of a TMS system.
Who should use transportation management software:
- transportation and logistics companies;
- companies with a vehicle fleet;
- businesses with regular shipments;
- courier services;
- exporters and importers;
online stores, distributors.TMS will definitely make life easier for companies for which logistics is an essential part of daily operations.
Conclusion
Thanks to modern software, management can see all costs and the efficiency of carriers, while consumers receive clear tracking and estimated delivery times. A satisfied customer is definitely a guarantee of increased company revenue.
By investing in a TMS system and integrating it with other programs, you can create a robust and durable digital environment for all of your company’s logistics.
