A transportation management system (TMS) is an obvious tool for the logistics team, helping to move freight faster, more cost-effectively, and more easily from start to finish. But it also impacts and improves multiple areas of a company by driving better efficiencies and opening up clearer visibility between departments.
These ripple effects of a TMS are often overlooked benefits, but they’re especially important when making a business case for a TMS. Let’s examine just a few…
A TMS can have a significant impact on productivity and cost savings.
Increased automation means that headcount can be maintained or lowered; better visibility into truck loads and routing leads to better decision-making around cost; and fewer manual processes for payment and billing means there’s less room for human error and faster settlement.
The flexibility and insight of today’s TMSs supports unique, data-driven marketing campaigns. For example, faster on-boarding than your competitors can lead to quicker cost savings after the sales cycle.
Higher quality services can be tailored to the complex needs of a customer. All of this leads to higher customer satisfaction rates and retention – essential metrics that support any effective sales or marketing effort.
The IT department can particularly benefit from a modern TMS. By fostering better data quality and transforming manual processes into automated ones, IT can more easily manage critical tasks like integrations and on-boarding processes. Plus, with a TMS that drives digital and configurable workflows, there are fewer requests for support help because the system is more intuitive.
A TMS can deliver significant efficiency gains throughout a company’s supply chain efforts, as a cloud-based TMS can back-connect to legacy non-cloud systems and enable you to connect all logistics processes into one, flexible, end-to-end process. A modern TMS also allows for more creative routing options that cut costs but deliver superior service levels – and a competitive differentiator.
A TMS is more than a tool for logistics! It drives clarity, automation, and it supports better quality data that can make all of your colleagues’ lives easier.
Related: Three Ways to Tell It’s Time to Replace Your TMS Transportation Management System
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