As the transportation sector becomes more layered and complex, transportation management solutions must respond in kind with more advanced in-app functionality and logistics planning.
Most standalone transportation management systems are too limited to encapsulate the tiered complexity of an international, multi-segment supply chain, but technology that can integrate and converge transportation with other supply chain functions, such as order management, set the new industry standard.
What you look for in a transportation management system should vary depending on a variety of factors, including but not limited to:
A transportation management system (TMS) is a logistics platform that supports the physical transportation and shipment of products between stakeholders. What started as a basic concept has evolved, however, to include a complex ecosystem of vendors, carriers, suppliers, warehouses, retailers, and other parties, all with their own set of operations and constraints.
Basic TMS functionality is used to restrict capabilities to batch orders with limited order-level reporting and speed. New systems that combine transportation management with order management, however, are more versatile and responsive, and therefore better suited for optimizing the whole supply chain network.
Mature organizations with multiple partners need more advanced logistics capabilities. Cloud-based orchestration software offers a holistic alternative to a standalone TMS.
Perfect order performance means incorporating many variables into your approach, some of which change by the minute. With end-to-end visibility and in-app functions for supplier selection, exceptions management, and more, stakeholders have greater control over individual order management, even when conditions change by the minute. Dashboards can show centralized data in real-time from a variety of sources, which is key to responding to disruption events, such as a supply shortage or weather-related delay. This multi-faceted approach to supply chain management is also important for supporting long-term objectives for future growth by providing visibility as the network increases its scale.
Here are a few examples of how TMS can support end-to-end visibility:
A combined order management and transportation management natively built on one platform creates opportunities to optimize processes across business units that would otherwise be overlooked. By collaboratively working toward shared goals, such as, for example, utilizing full truckloads and improving time performance, stakeholders can mutually benefit and improve operations.
Here are a few additional examples to demonstrate specific applications for TMS optimization:
In an era of global supply chain disruption, shortages, and high delivery costs, it’s more important now than ever to understand the performance value and financial reporting. The Suez Canal accident, emerging COVID-19 variants, and international sanctions are just a few examples of events over the last year that caused service interruptions and expenses.
To build resilience against disruption, supply chain management software should include:
Leaders of every industry prioritize customer service. One way to innovate in this area is to develop omnichannel capability, which means a product can be bought, fulfilled, or returned at any location within the network. This line of thinking makes it easier for customers to use your product and services, which makes it more likely they’ll support the organization again in the future.
The following are a few ways your TMS program can strengthen customer loyalty and brand reputation:
These capabilities are valuable but barely scratch the surface of what supply chain management platforms can do to support not just individual business units but the whole supply chain network. A standalone transportation management system can suggest reroutes, but a combined TMS and OMS platform can suggest alternatives that incorporate all the resources and capacities within the network.
Transportation management systems can help mitigate risk and build resilience when exceptions occur that threaten your bottom line. Expanded service levels and communication between silos also make it possible to improve flows that have become segmented. With integrated Transportation and order management (or an order-centric TMS), businesses can provide high service levels and a seamless customer experience.
The MPO Transportation Management System can help you embrace supply chain complexity and truly build resilience. As a multi-modal, holistic solution, businesses can continuously optimize inventory, orders, and transport across inbound, outbound, and reverse flows, with cost-to-serve calculations that go beyond transportation management.
Transportation management constraints are expected to change over time - new partnerships are just one reason to develop operations designed to scale and adapt. Even positive changes pose operational challenges. That’s why flexibility is the single most important factor to look for in a transportation management system. Endless possibilities could affect order fulfillment, and, because variables are constantly changing, a unified platform is the only way to solve the challenges associated with such complexity.
Want to learn more about what a combined TMS - OMS platform can do for you? Otherwise known as an order-centric transportation management system, the supply chain cloud platform ensures you optimize not only individual order execution, but order planning as well. It also allows logistics teams to optimize across silos, both within their organization, as well as across the entire multi-party ecosystem Download the solution guide below for more information about benefits and capabilities.
You can also get in touch by reaching out to [email protected], [email protected], or requesting a demo today
Related Resources
10 FAQs on Transportation Management System (TMS)
Use this FAQ to explore the most common questions we hear about transportation management systems (TMS) to make the best, most informed decision for your business needs and goals. Download Now!
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