Transportation Management Systems (TMS) rank as one of the fastest growing sectors of the supply chain and freight industry. Sadly, most businesses do not take full advantage of a TMS system. Shippers in their quest to get LTL freight from point A to point B at the lowest cost are often times stuck in the old ways of using the fax, multiple websites and waiting to hear back from the various LTL carriers. A one stop shop where all the carriers are in one location is the wave of the future.
Focusing on cost reduction is the first point a good TMS platform can provide. History shows a good TMS platform provides a good solid cost savings for companies who use them. This becomes a critical component for a companies bottom line. Increasing the shipment volume also becomes easier with a TMS based system. Basically you have the ability to do more with less. Moving loads of 10-12 LTL shipments a day using phone and paper can quickly go to 60 plus using a TMS based system.
Exploring the various capabilities with a TMS system is also often missed. Sometimes shippers just pluck the low hanging fruit such as route optimization and carrier connectivity. However, they miss out on other valuable aspects suck as metrics reports and asset tracking. An obvious goal should be where you use a TMS system to the full potential that is offered.
As the business environment continues to evolve, expect more shippers to start using TMS to maximize their current operations. Vendors are honing their TMS offers to better meet LTL, TL and Air Shippers growing needs. Innovation and companies turning to a single source solution platform is key and the best of the TMS market has yet to be tapped.