4 Reasons to Use Transportation Management Software

4 Reasons to Use Transportation Management Software

Moving goods may seem like a straightforward process, but there are plenty of problems that can happen between point A and point B. Using a transportation management system (TMS) can help you recognize and avoid costly problems before they happen. Consider these benefits to using a transportation management system:

 

Reduced Expenses

A transportation management system can aid cash flow by improving freight accounting practices. According to Inbound Logistics magazine, a shipper can reduce costs by 5 to 10 percent per freight invoice by using integrated freight payment, auditing, and consolidation services within a TMS solution.

Using a TMS can also reduce costs by make shipping operations more efficient. By optimizing distribution and collection points, delivery capabilities can be streamlined, reducing costs and increasing profits. A good TMS will allow you to analyze your business processes in detail and find areas to reduce expenses, such as fuel costs, inefficient delivery routes and driver overtime.

Inventory Management

Integrating warehouse inventory management software with a TMS will create a central database for incoming and outgoing orders. It can also be used to assign employees where they are needed most, increasing the efficiency of the overall operation. Another advantage to TMS is its ability to track inventory in the warehouse, in transit, and once it arrives at its final destination.

Using a TMS can lead to inventory reductions, reducing the amount of money tied up in product sitting in inventory. Data provided by the system can help with inventory forecasting, making ordering more accurate and reducing the amount of inventory kept on hand.

Cloud Accessibility

Using a cloud-based transportation management system gives anyone access to critical information, anytime and from anywhere. It allows for flexibility in accessing data from desktop computers or mobile devices, and gives employees real-time visibility of the process.

Cloud-based software also reduces IT costs associated with the program. There is no need to purchase expensive hardware or pay to maintain it, since the cost of upgrades is included in your contract. There is also no need to hire expert staff to maintain the system. Finally, you will see savings in energy costs by eliminating the need to power network equipment.

Customer Service

A good TMS will help you provide your customers with accurate, timely information on where their order is in the process. From initial order to delivery, you can let customers know where their order stands and when to expect delivery.

Additionally, by using TMS reports on vendors, you can track their performance. For example, you can compare two carriers in relation to their timeliness and accuracy. If a carrier is consistently late, it causes more customer service headaches for you, wasting valuable time and money. Having this information lets you prevent the problem before it happens, providing better customer service for your clients.

GTG Technology Group

GTG Technology group can provide a transportation management system to meet the needs of your company, whether you are an international shipper or a small, local operation. GTG will reduce your expenses, improve inventory management, reduce IT costs with cloud accessibility, and improve your customer service.

One thought on “4 Reasons to Use Transportation Management Software

  1. You wrote that with this transportation software, most companies will be able to reduce costs by making shipping operations more efficient. I had heard in the past that different services were investing in software to help them function better, and wanted to learn more about it. With things like trucking, being able to map out the best possible route could help you get the cargo to the destination in better time, and help the business keep their clients. Thanks for the read.

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