Reduce Transportation Costs with Transportation Management Software

Multi-carrier transportation management systems (TMS) have been implemented within the enterprise order fulfillment process for more than 20 years. However, over the last couple of years there has been a higher demand for these systems from mid-sized companies, e-commerce retailers, and omnichannel retailers.

With the cost of transportation rising steadily over the years, a multicarrier TMS serves as a reliable method to reduce transportation and fulfillment costs. Cost savings from a multi-carrier TMS extend from the time the customer places an order all the way through the pick, pack, and ship processes.

Typical quantitative ROI calculations show the investment payback well within 12 months of implementing such a system. Each business application or industry will have different metrics that contribute to the cost savings. This document explores the most common and important elements contributing to the cost savings. Not all of them will apply, and some will be more important than others depending on the personality of the industry and business automation stage.