How to Leverage Transportation Management Software

Transport management systems help organizations manage their various transportation activities, such as shipping, delivery and tracking. Integrating transportation management software can improve a company’s efficiency, enhance visibility into logistics operations and save costs. Let’s explore how this software benefits businesses and the different features you can leverage.

Understanding Transportation Management Systems

A transportation management system (TMS) is a type of software that helps businesses manage their transportation operations effectively. The system streamlines the processes involved in the end-to-end movement of goods. These systems are mostly used by:

• Logistics and supply chain professionals.
• Manufacturers and shippers.
• Distributors and wholesalers.
• Retail and e-commerce businesses.
• Carriers and freight forwarders.
• Third-party logistics providers.

TMS Features and Capabilities for Logistics

Leveraging TMS means using the system properly to benefit your business and specific operations. Some essential features and capabilities will help you maximize the benefits of a transportation management system:

1. Route Optimization

This feature allows you to plan time-efficient routes for your fleet. A TMS should integrate with real-time data to account for factors such as road conditions, delivery time windows, traffic patterns, load constraints and more. The data will help determine the optimal routes for every trip.

2. Analytics and Reporting

The TMS analytics and reports feature helps you gain insights on specific performance indicators like fuel consumption, on-time delivery rates and asset utilization. These data-driven reports also enable you to identify bottlenecks and make more strategic decisions on future transportation or logistics operations.

3. Automated Job Assignments and Load Planning

Manually allocating duties to your teams and load planning can be time-consuming and prone to errors. An automated transportation management system should offer load planning and job assignment. This automated feature considers factors such as driver availability, vehicle capacity and delivery constraints.

4. Integration Capabilities

The TMS should be able to connect with other systems you’re using to improve efficiency and decision-making. This integration will enable easy data exchange across different systems or applications like warehouse management, customer relation management (CRM) systems and enterprise resource planning (ERP) systems. In addition, the integration should enhance productivity and collaboration between different teams or departments.

5. Carrier Management

Comprehensive carrier management allows you to maintain an up-to-date carrier profile, ensure compliance with relevant regulations and track performance metrics. A good TMS also gives you the flexibility to choose transportation providers.

6. Fleet Management

The fleet management feature allows you to oversee and control your vehicle fleet. Proper controls help minimize operational costs and optimize resource usage. You can monitor fuel consumption, track the locations of your vehicles and schedule preventive maintenance.

7. Automated Invoicing and Billing

If you want accurate and timely billing for your customers, your TMS should have automated invoicing and billing features. The automated system will also minimize human errors. Through integration with existing systems in your business, the TMS can generate invoices automatically.

8. Mobile-Ready Functions

Mobile-ready features like electronic proof of delivery, real-time tracking and barcode scanning are essential to maintain control over your transportation processes.

Advantages of Transportation Management Systems

The TMS market is estimated at over $2 billion in 2024 and is expected to hit $3.19 billion by 2029. This growth indicates that more businesses are embracing transportation management systems because of their features and benefits. Let’s explore some advantages of these systems that make them a core tool for business logistics operations:

1. Inventory Management

A transportation management system helps predict inventory more accurately. The TMS helps you keep tabs on your order and shipping life cycles, and you can have peace of mind knowing your customers will receive their goods on time. Shipping mistakes are also minimized.

2. Reduced Transportation Costs

Automated transportation management systems enable businesses to optimize asset and resource utilization based on parameters such as order groupings, stop counts, costs and more. Tailored transportation operations can reduce operational costs.

3. Real-Time Tracking

Business owners and logistics professionals can constantly track shipments’ locations. You will be notified when a cargo has not arrived or is late. This real-time tracking allows you to make necessary adjustments promptly.

4. Better Customer Service

Customer demands continue to change with technological advancements, and your business must adapt to meet these evolving needs. For instance, customers prefer faster deliveries and the ability to have unique delivery times. A new-generation TMS can help you meet these expectations and boost customer satisfaction.

5. Minimal Documentation

A TMS automates your transportation processes and minimizes the need for documentation and paperwork. This reduces your administration costs. A transportation management system also makes legal compliance easier.

6. Safety of Goods in Transit

A TMS allows you to track your goods while in transit until they reach their destination. You can detect anomalies, quickly correcting any actions or activities that hinder the safety of your goods and staff in transit. This is a significant benefit for businesses that transport sensitive goods.

Why You Need a TMS

As a business owner or logistics manager, your markets may be spread across the country or beyond borders. Your goods must be transported to these diverse destinations in a timely and secure manner. You need to manage your transportation processes properly to meet your customers’ expectations and simultaneously comply with legal requirements.

A simplified and more organized way of managing logistics is preferable over any method that minimizes efficiencies, such as manual transportation operations management. A TMS allows you to manage and store necessary data in one platform that integrates with other systems in your business. Furthermore, a TMS makes it possible to exclude the influence of human factors, allowing for more accurate deliverables.

A good transportation management system can also solve these common problems in transport logistics:

• High costs of transportation
• Inefficient use of fleet
• Lack of analytics or insight
• The inability to change routes online
• Planning based on subjective opinion

By solving these problems, a TMS becomes a virtual intelligent assistant for business owners and logistic professionals involved in transportation management.

Let Broussard Logistics Handle Your Transportation Needs

Transportation is a key component for many businesses, and the more efficient your logistics are, the more satisfied your customers will be. With over 40 years of experience in logistics, Broussard Logistics assists companies in controlling, managing and lowering freight costs by improving their supply chains.

Our cloud-based transportation management software allows you and your team to access accurate information, streamline internal processes and improve cost management. This solution aims to:

• Help logistics managers solve transportation management challenges.
• Eliminate the inefficiencies associated with manual processes.
• Enhance productivity through a variety of cutting-edge technology features.

Request a consultation for a TMS, and our team will contact you shortly. We look forward to speaking with you!