Core Capabilities to Look for in a Transportation Management System
When it comes to transportation businesses, every second matters. Transportation is a commitment that must be honored at all times, as it directly impacts the customer’s experiences. If you run a transport company, you’re not only responsible for the pickup of goods but to complete the timely delivery as well. Since trucks and other vehicles are billed hourly, it is imperative to plan the timely movement and ensure the goods stay in the original state as picked from the source. To ensure every planned delivery takes place as per the schedule and within the stipulated budget, the industry relies on Transport Management System (TMS).
From being just software to track vehicles assigned to their respective delivery assignments, TMS has evolved into a tool that suggests load optimization and even alerts vehicle maintenance.
Choosing a TMS could put logistics companies in dilemma considering the plethora of options available. You could choose the top-of-the-shelf solution for its endless features or may go for a TMS that suffices your budget and does the minimum.
The right approach to choosing a fitting solution is to map your requirements with the TMS capability. We’ll discuss a few of the functionalities that must be part of the software you choose.
1. Does this solution suffice my requirement?
We could be swayed by the fancy sales pitches and shiny features of TMS software. But if it does not fulfill our requirements, it is not a valuable investment. For instance, if you want to address the problem of truck capacity available for your fleet, the TMS should provide a dashboard with details of your available vehicles engaged and when they’re expected to be available.
2. How will the solution help in better trip planning & execution?
Knowing which vehicle to utilize for timely delivery and at the best costs is a capability that comes with a TMS. For best utilization of Less than truckload (LTL), TMS ensures matching loads and communication with carriers, so your company gets optimized capacity. When you plan for a trip, it involves goods declaration and related documentation. TMS that is integrated with documentation generation helps execute deliveries faster and more smoothly.
3. Will it improve the company’s profitability and cost control ability?
If an investment does not bring profit growth, you’re better off without a TMS. Typically, if your vehicles take lesser time to deliver the goods to the destination, you’re fleet is available to take on more deliveries. This becomes even more useful when the demand is up and you can match the supply of transportation. With a TMS, peak seasons and war-like situations can be converted into opportunities of scale.
4. How does the TMS integrate with other functions of the supply chain?
Transportation is a part of a larger system of the supply chain where it is required to support manufacturing, distribution, and delivery. Between shippers and carriers, transportation holds crucial importance to ensure delivery timelines are met. An integrated TMS gives all stakeholders real-time status of the overall supply chain activities dependent on transportation for effective planning.
5. End-to-End Visibility
A TMS must be built-in with features like generating and auto-sending of invoices and actions to be taken during drastic demand shifts. Transport companies that provide complete visibility are preferred by manufacturers practicing just-in-time and lean operations. With visibility, you can take action on defaulting customers and identify any revenue leaks in the system.
An investment of any kind must bring improvement in productivity, efficiency and customer satisfaction. TMS transforms your ability to deliver superior transport service. If you’re looking to upgrade your transportation capabilities, Softlink Global’s integrated TMS is the most comprehensive investment you’ll ever need. Get a consultation to implement the Transportation Management System of choice for your company today.
