How a Transportation Management System (TMS) Reduces Costs & Bottlenecks

Logistics is in the midst of a full-scale disruption. The internet, mobile devices, automation, and a whole host of other technological advances are rapidly changing how goods are shipped. To capitalize on the opportunities of this change, many companies are adopting next-generation tools and technology to modernize their supply chain and shipping practices.

One such piece of next-gen tech is a Transportation Management System (TMS). Essentially, a TMS is a cloud-based software solution that helps companies streamline their supply chain to ship freight in the most efficient and cost-effective way possible.  In this article, we’ll explore some of the ways a TMS helps shippers save time and money, adding a powerful boost to the bottom line.

Why is a Transportation Management System needed?

Many shippers still rely on spreadsheets, emails, and phone calls to manage their shipping operations. But as freight costs rise, drivers remain in short supply, and wholesale customers expect better service and greater transparency, these antiquated practices no longer suffice. A TMS gives companies a digital toolset that can help shippers make smarter decisions on everything from routing to carrier selection, load optimization to shipment consolidation—all while eliminating costly human error and manual inefficiencies.

Key advantages of a Transportation Management System

Let’s take a more detailed look at three powerful ways a TMS helps shippers save money, improve processes, and operate with greater speed and agility in their logistics operations.

Reduce shipping and admin expenses

Excess freight costs are a common problem for many companies. A well-designed TMS provides insight into areas where expenses can be cut. It acts as a reliable home base, bringing all related costs, contracts, carriers options, and other shipping information into a single, central repository. This gives companies clearer visibility into where money is being spent (or overspent)—and a more nuanced understanding of where it can be saved. A quality TMS also enables shippers to compare carrier rates, which enables better negotiations. On top of that, automating manual tasks saves admin costs.

Ship faster and more efficiently

Carrier selection, shipment execution, load optimization, claims management—these and many more processes are made simpler with a TMS. Everyone in the operation has access to an ongoing ledger of orders that keeps the staff in the warehouse and the drivers on the road up to speed on where goods are located in the warehouse, or in transit, and when they arrive. With this kind of insight (and the elimination of manual labor and guesswork) companies can clear bottlenecks in the process. Transportation departments are streamlined, shippers can stay in touch with carriers around the clock, and the entire connected system helps improve the way freight is managed.

Address bottlenecks and other performance issues easily

The issue of visibility goes beyond simply improving processes. We live in a world where every company is a data factory. And businesses depend on data to drive their operations forward and find new ways to improve the bottom line. A TMS collects data from end-to-end across the entire supply chain. Detailed analytics on carriers, customers, modes, SKUs, and more are all aggregated into a single dashboard where key metrics can be defined and tracked, shaping (and re-shaping) the shipping process in real-time for the best, most cost-effective results. From monitoring driver performance to real-time course correction, to inventory tracking, to tweaking route efficiency, a TMS enables high performance down to the finest details.

What does it feel like to use a leading TMS?

We’d love to show you. We’ve been in the logistics industry for 60 years—and we’ve combined our decades’ of experience into an all-in-one tool that is simple to use, powerful where it matters, and can be customized to meet the specific needs of your operation. To learn more about CTSI-Global’s industry-leading TMS solution, get in touch with us today.

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