Rapid Deployment, Immediate Savings: How to Make a Transportation Management System Pay for Itself Sooner

The whole point of a transportation management system (TMS) is to cut costs and increase overall efficiency. Providing the ability to quickly and easily centralize orders, consolidate shipments, select optimal carriers, and more, a fully integrated TMS can bring immediate and lasting benefits to any operation.

But implementing a new system can come with hidden costs and surprises. These can make it harder for companies to access the savings a TMS can bring, and may cause a real headache for staff.

That’s why it’s important to roll out the system as quickly and smoothly as possible. Here’s how to maximize efficiency with a new TMS right out of the gate so it pays for itself sooner.

Start off on the right foot: preparation before implementation is key

The right TMS solution can have a hugely positive return on investment (ROI). A 2015 American Shipper study noted that one-third of new TMS users see at least a 5% cost reduction as a direct result of their TMS. That’s the bare minimum—the average freight savings were closer to 10%.

Unfortunately, many companies delay their ROI by months, if not years—and all because of a poor rollout strategy.

Unclear launch deadlines, murky goals, and underutilized features can cause a sluggish ROI on any new system. The fastest way to see net positive results with any TMS is by setting—and meeting—functional go-live deadlines for all the software features and ensuring staff know what these features do. The goal is to hit the ground running before day one—not spend weeks playing catch-up.

See the big picture: leverage the TMS to easily aggregate data

One of the best ways to realize rapid savings from a new TMS is to move to a single freight audit and payment (FAP) application. Most companies pay too much for shipping, and this often because a high-volume global supply chain simply creates too much data for them to process manually. This is especially true when it comes to carrier invoices.

Invoice fine print, confusing variance, adjustable rates, and obscure billing practices—not to mention sheer volume—can cause shippers to become buried in the details. Leveraging the new TMS to centralize data, shipping invoices, and rates in a single dashboard removes this complexity, empowering companies with a clear view of the entire supply chain.

By increasing invoice and billing visibility, it’s easier to reduce payment and billing errors, exceptions, and missed discounts. This can lead to immediate savings, not to mention a significant reduction in workload and operating costs.

Optimize shipments: reduce freight rates with real-time planning

Effective TMS rollout isn’t just about speed—it’s about intelligent, integrated solutions that increase ROI on every shipment.

Fragmented shipping locations, siloed management, and narrow-sighted shipping decisions can lead to higher shipping costs. But through their TMS, companies can consolidate less-than-truckload (LTL) shipments, find the best possible routes, and more to uncover considerable savings.

A fully integrated TMS enables intelligent real-time planning. This allows companies to schedule shipments more effectively, like knowing when to hold on to certain freight to optimize LTL shipments—without delaying urgent orders or holding high-demand freight back from timely release.

Find tactical savings at every turn

Rolling out a new TMS can seem daunting. But successful implementation is all about setting realistic goals and reducing manual tasks with intelligent applications. Use on-demand tools to consolidate data and gain a global view of transportation spend in hours, not weeks, and the savings will quickly speak for themselves.

CTSI-Global’s leading TMS solution is as simple and cost-effective as it is powerful. And through our trusted managed TMS offering, we help companies implement and run their TMS to become even more efficient—and maximize their savings.

Make the most of your TMS from day one. Contact us today.

Reader Interactions