How ROI is Optimized by a Robust TMS

With supply chains growing more complex every day, transportation management systems (TMS) are no longer just a nice thing to have—they’re vital for success. Shippers seeking to bolster resiliency and optimize efficiency are turning to TMS applications for help fielding an increasingly globalized, digitized, and volatile landscape.

Three major factors are currently driving shippers to integrate a TMS:

  • Digital transformation—Technologies like AI, big data, automation, and the Internet of Things (IoT) have transformed supply chains. It’s made everything from shipment tracking and event management to everyday tasks like invoicing and claims processing faster and easier. TMS applications make it easy to integrate insights from all of these technologies and maximize their benefits.
  • Surging demand—With middle classes and buying power growth across the globe, so has the demand for goods. E-commerce has played a considerable role in this growth spurt, particularly during the pandemic. Firms seeking to keep up with ever-increasing demand are turning to digital transformation and TMS applications to help them manage multinational supply chains, larger cargo volumes, and global markets.
  • Historically high ROI—TMS’ ROI is well established. It’s been helping shippers cut costs and optimize efficiency since the 1980s. And the ROI has only continued to grow as they’ve become more comprehensive and advanced.

The Covid-19 pandemic and its aftermath have accelerated all of these trends. Firms are currently responding to mounting consumer demand while grappling with unprecedented disruptions and uncertainty. Remote work gave many firms the final push into digital transformation. And, in a market defined by skyrocketing costs for everything from fuel to spot rates, the ROI on efficiency has never been higher.

Optimize supply chain management through TMS

As disruptions and uncertainty continue to dominate global supply chains, improved visibility, better response times, and enhanced risk mitigation capabilities will be essential for survival and protecting bottom lines.

A transportation management system can help firms streamline every step of the supply chain management process, optimize enterprise processes, save on costs, and boost their team’s productivity. Some of TMS apps’ most valuable benefits include:

  • Increased visibility. TMS applications collect and centralize data on inbound and outbound processes to enable end-to-end supply chain visibility. Better access to data on shipping times, exceptions, and operations means more control, faster response times, and improved customer service.
  • Time and cost savings. TMS features such as load optimization, carrier selection, and invoice processing can generate significant time and cost savings by giving shippers access to a broader network of carriers and streamlining manual tasks. When carrier disruptions are common, a carrier selection feature is a valuable tool for diversifying shippers’ carrier bases, supporting contingency plans, and quickly finding alternatives during disruptions.
  • Risk mitigation. Control towers enhance supply chain teams’ exception management capabilities with a full view of enterprise operations. Access to real-time data and automated exception alerts can help shippers stay ahead of delays and disruptions and mitigate the effects of these events on operations and bottom lines.
  • Customer retention. Customers expect more than ever from shippers—real-time updates are industry-standard, and on-time deliveries have become a huge differentiator. Better control over shipping cycles means fewer delays and more reliable information to pass on to clients.
  • Compliance. Keeping track of multiple contracts, rules, and regulations across different regions creates plenty of room for errors. TMS apps with automated invoicing can help firms comply with client and carrier contracts and any regional regulations that apply to their operations.

Looking to build a more efficient supply chain? Power the future of your logistics ecosystem with Honeybee TMS by CTSI-Global. Contact us to learn how we can help you simplify your operations.