A robust transportation management system (TMS) is becoming the preferred tool among shippers looking to maximize their supply chain’s efficiency—and optimize their shipping costs.
In addition to taking the legwork out of managing logistics operations, the right TMS can also reveal otherwise hidden opportunities to cut down on transportation spend. Here are a few ways this software can help you uncover more chances to save.
A TMS makes comparison shopping easier
One of the major benefits of using a TMS is that it can provide shippers with dozens of rates and quotes from carriers in minutes, making it easy to pinpoint the most cost-effective carrier for a particular shipment.
Forget the various calls and emails involved in procuring price estimates from different carriers. A TMS eliminates the detective work required to manually hunt down capacity and pricing, saving staff time while giving them more options for comparison. By using a TMS, staff can also keep a pulse on market rates, helping them ensure that what they’re paying their contracted carriers is truly competitive.
A TMS allows for different scenarios to be considered
Another great reason to use a TMS is that it allows teams to explore different scenarios, routes, and modes when planning shipments. This can often reveal cheaper options that still meet all the necessary criteria.
For example, without using a TMS, a team member might assume that an expedited shipping option is the only way to guarantee that a shipment will arrive on time. But when they explore their options in the TMS, they realize that paying premium freight prices just isn’t necessary—it will still arrive in plenty of time if they use ground shipping. If the customer has paid for shipping within a certain window, this is a smart way for shippers to protect their margins without putting customer satisfaction on the line.
The software can also take the legwork out of comparing and coordinating a multi-modal approach. In many cases, using a mix of land, sea, and air transportation options is cheaper than sticking to one mode alone, but comparing these different scenarios manually can be a slog. A TMS allows staff to easily explore various scenarios, helping them trim more dollars off the final bill.
A TMS helps to eliminate spend on unnecessary truck space
In some cases, shippers are wasting money by paying for space on the truck that they simply don’t need.
Using their TMS, supply chain managers and their teams can quickly identify whether it’s possible to consolidate shipments or take advantage of less-than-truckload (LTL) pricing. A sophisticated TMS enables staff to optimize every shipment, so no space is wasted—and no money is left on the table.
Save money—and make better decisions
Using a TMS helps to ensure that no opportunity to save goes unnoticed. But this software can also help supply chain managers make smarter decisions in the long term. The unparalleled visibility and data that a TMS provides allow for better forecasting, planning, contract negotiation, and more—so shippers can consistently make improvements that bring costs down.
Unlock the savings hidden in your supply chain. Contact CTSI-Global today.