Top 3 Benefits For Shippers To Implement Transportation Management Software

If you're wondering why you should be bothered to implement TMS for your organization. Here are the top 3 benefits that shippers can get from TMS.

In our increasingly interconnected world, instant gratification has been ingrained in the psyche of consumers globally. We expect instant status updates with a click of a button.

However, enterprise supply chain and logistics are still mostly behind in streamlining the procurement and freight management processes.

If you're wondering why you should be bothered to implement TMS for your organization.

Here are the top 3 benefits that shippers can get from TMS.

Benefit 1: Reduce business expenses

The last two years of supply chain disruption had freight rates going through rollercoasters - and this issue is expected to persist in 2023. The increased cost has impacted every business that utilises freight shipping to transport their goods - whether they are dealing with B2B or B2C transactions.

TMS can help businesses locate the most cost-effective and efficient shipping option, allowing them to minimise shipping costs. For instance, Cargobase data shows that shippers can gain immediate ROI with up to 27% cost avoidance.

Additionally, TMS can help to reduce manual tasks by automating and streamlining procurement and freight management processes, from quotation requests, booking, shipment tracking, and even invoice audit. When done properly, shippers can save time on repetitive manual work and concentrate manpower on more productive activities.

Benefit 2: Streamline processes

Companies often engage third-party logistics service providers like freight forwarders to execute shipments. This process can be daunting, especially for shippers that often have to tackle global shipments with multiple freight modes with dozens of freight forwarders.

TMS can integrate shippers and logistics service providers seamlessly. A user-friendly TMS should simplify and automate the internal process for different stakeholders within the shipper's organization, from operators, and managers, to finance and top management. It supports the organization in removing redundant processes or manual and repetitive work. On top of that, it reduces the margin of error.

Benefit 3: Increase productivity

There is plenty of manual work involved in logistics operations. Spot-buy freight is still mostly handled via emails. Meanwhile, many companies still rely on several tracking systems to monitor their shipments. Juggling the various processes and multiple platforms often takes significant time, not to mention the errors and dissatisfactory work that arises from team members.

TMS can simplify freight management into a centralised, easy-to-use single-screen solution, allowing businesses to access everything at their fingertips. With easy-to-navigate user interfaces, shippers and logistics service providers alike can share and access essential documents, making it easier to collaborate.

This implementation also helps to reduce the number of emails employees have to sift through, reducing the possibility of a worker overlooking a crucial message. Lastly, all data is easily accessible when needed and securely stored in an archive. All of these factors can help companies save time and resources, allowing them to direct their efforts toward more critical business operations.

The implementation of a TMS system can benefit shippers significantly. Given the ever-changing business environment and demand. Moreover, these systems can be tailored to match the needs of the enterprise, ensuring maximum effectiveness and gains for businesses.

For companies that do not already have a TMS system in place, now is the ideal time to get one! At Cargobase, our no-nonsense transportation management system offers a simple, powerful yet affordable solution that can be implemented in 4 weeks.

Connect with us to learn how you can benefit from a TMS!

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