5 Ways a Transportation Management System Improves On-Time Delivery
Increasing supply chain demands are incentivizing many businesses to streamline and improve transportation efficiency. Customers expect faster deliveries, challenging retailers and shippers to overcome logistical demands. Implementing a transportation management system is one solution.
Transportation management systems help manage transportation activities such as shipping, tracking, and delivery. A TMS benefits businesses by providing cost savings, improved efficiency, and enhanced visibility into transportation operations.
In this blog, we’ll explore what a transportation management system is, why it is important, and the benefits that it can provide to businesses.
What is a transportation management system?
A transportation management system is a software platform that helps companies manage their transportation operations, including shipping, tracking, and delivery. The system can automate and optimize transportation processes, providing businesses with greater visibility and control over their supply chain.
A TMS may include features like carrier selection, load optimization, route planning, freight audit and payment, and real-time tracking. It is often used by logistics and supply chain management professionals serving manufacturers, distributors, retailers, and other industries.
The Benefits of a Transportation Management System
No matter your business’ field or specialty, a TMS can help evolve your supply chain and improve on-time delivery in several ways. Here are some of the key benefits.
Route optimization: The system optimizes delivery routes to ensure that drivers take the most efficient and direct route to their destination. This cuts back on delivery time and avoids costly delays.
Real-time visibility: With real-time visibility into the status of shipments, shippers can track the progress of deliveries and proactively address any issues that may arise.
Carrier performance tracking: A transportation management system can track carrier performance metrics, such as on-time delivery rates and transit times. This allows shippers to identify carriers that consistently deliver on time and avoid those with a history of delays.
Automated alerts: Automated alerts are triggered when shipments are delayed or at risk of being delayed. Shippers can take measures to minimize delays and keep delivery schedules on track.
Load planning: A TMS optimizes load planning to ensure that shipments are loaded onto trucks in the most efficient manner possible. This reduces transit times and improves on-time delivery performance.
A transportation management system improves on-time delivery performance, ultimately resulting in increased efficiency, enhanced visibility, and cost savings for businesses. A history of consistent, on-time delivery allows companies to provide better customer service and increase customer satisfaction.
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