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6 Ways a Transportation Management System Helps Increase Profits

6 Ways a Transportation Management System Helps Increase Profits

A transportation_managementTransportation Management System has 6 Major Benefits to Increase Profits In Addition to Reducing Transportation Costs

Every smart business understands that business growth must be tied to increased efficiencies and a reduction of overhead. If you run a business that deals with the transportation goods through the supply chain you may have heard about the benefits of a Transportation Management System (TMS).  Most businesses that rely on a Warehouse Management System (WMS) are those that handle the inbound procurement (orders) and the outbound (shipping) and work though the TMS to figure out the most efficient routing of the goods with the best mode of transport with the best carriers that will trak the shipment.  The TMS solution relies on integration with the Enterprise Resource Planning (ERP) Sytsem and the WMS in order to complete the loop in the supply chain. 

Fortunately, developments over the years in transportation management software (TMS) systems have made it possible to increase margins while simultaneously improving efficiency and quality of service.  A transportation management system (TMS) helps companies move freight from origin to destination efficiently, reliably, and cost effectively.  There are many benefits that a robust TMS can provide, but the main reason most companies implement a TMS is to reduce a major part of their expense - a reduction on what they spend on freight.  If you are considering a transportation management system mkae sure it will include analytics and data to help reduce expenses such as driver overtime, fuel, and inefficient routes. Not all TMS systems are alike and it's important to find the right one for your business to accomplish your growth and profitablity goals.  If you find the right on it's common to hear that Transport Management Systems can reduce costs by up to 30%!

Here are 6 Ways Transportation Management Systems Help Increase Profits Beyond Reducting Transportation Costs

While reduced transportation spend is generally the largest benefit of a TMS solution, benefits such as service level improvements, increased market share due to customer service improvements and inventory reduction processes should not be overlooked. Some additional benefits include:

  1. Real-Time Data Provides Visibility & Decision Making: Today’s supply chain managers need to make quicker decisions based on real-time data. With increased visibility, companies become more agile and more responsive to changes. An integrated TMS can provide end-to-end supply chain visibility; enabling better inventory forecasting and better accuracy and streamlining throughout the entire process.
  2. Improved customer service—TMS reporting and analytics enable you to monitor on time performance, track shipments, and identify service failures. This information can be used to upgrade and improve your service and support efforts, resulting in overall increases in customer satisfaction.
  3. Efficiency and productivity in operations—TMS systems enable companies to centralize the logistics function, providing support across the entire organization by synchronizing processes and eliminating bottlenecks in the system.
  4. Real-time tracking of drivers—One of the biggest benefits is the ability to gather data about how much time specific routes take in order to build a more efficient schedule.
  5. Streamlined billing processes—A good transportation management system will allow you to automate most, if not all, processes. The amount of time you’ll save on paperwork alone could make transportation management software worth the investment.
  6. Greater collaboration—A critical piece of the TMS solution is its capacity to connect the many partners that have input on the freight movement process. With increased collaboration, supply chain partners are able to identify opportunities not just for their business own units, but opportunities that affect the entire supply chain.

Transportation needs change with time, as do a company’s requirements for its logistics and supply chain management. It’s tough to be competitive with pen-and-paper operations, which means it’s becoming increasingly important to adapt to and incorporate the technologies that are making the difference between lackluster and industry leading operations.

Download our whitepaper, Take the Next Step to Optimize Your Supply Chain with a Transportation Management System, to learn how a TMS can save your organization time, improve accuracy, increase customer service levels, and provide real-time tracking and instant data to better manage your supply chain.

If you have any questions about how implementing TMS will help your business, contact us or call us at 888.725.2555

SBS Group USA - As a national Microsoft master VAR (Value Added Reseller) and Gold Certified Partner, SBS Group can help you fully optimize your ERP functionality and workflows to elevate your business processes, improve the utilization of data throughout your organization, deliver ongoing training and support resources, and more.

Contact us today for more information on how SBS can be your strategic partner, or follow us on LinkedIn at , on Twitter and find us on Facebook.

Another version of this blog was published by DSG on -


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