One of the best ways to improve efficiency and reduce operation costs is by using transportation management systems. Using a TMS improves the service and reduces costs. It also improves the transparency of shipments.
You can receive the rates for shipping, and you can arrange and track shipments in one single platform. Take a look at the top eight benefits of using a TMS.
1. It Reduces Shipping Costs
When you use transportation management systems like Rose Rocket, the software allows you to find the best shipping services for the best prices. When you can access this information and compare the different options, it allows your company to come up with a cost-effective method for your shipping and transportation of freight. You can make better plans so that customers receive their products more quickly and for a better price.
2. It Improves Your Order Management
Using a TMS also helps to improve the order management process. This software has a lot of different features, so companies can organize the inventory databases, process orders, collect data about customers, track shipping, and follow orders from start to finish. Your order processing runs more efficiently, as there are no delays as orders move through the various processes.
3. You Give Better Customer Service
Using a TMS allows you to give better customer service. You can use the reporting and analytics features to see how your decisions impact the transport of your products. For example, you can track the performance of carriers you have used to ship products to your customers. If you consistently choose a particular carrier because it has a lower cost, but you notice that they deliver your products on time only 60% of the time, you can improve customer service by selecting a slightly more expensive company with a higher on time delivery rate.
While customers do want to pay lower costs, they also want to receive their products in a timely fashion. You can use the data in your TMS to determine the best possible options for your company.
4. You Have More Time to Manage the Warehouse
When your company spends less time on freight management, you have more time to focus on warehouse projects, such as inventory tracking. You can integrate your TMS into other applications to decrease any errors and update what inventory you have and what products you have shipped.
Because you will have fewer errors, you won’t waste time double checking paper records and making corrections. This also gives you greater supply chain visibility, so you can make better decisions about what you need in the warehouse.
5. You Benefit From Route Optimization
Another benefit of using a TMS is that you can optimize your routes. You may be able to use fewer vehicles and chart out the deliveries more efficiently. If you use your own vehicles for delivery, you can save gas and time, and if you rely on shipping services, you can find the best possible options.
The TMS will also contain your cargo agreements with different transporters, and it can search for combination and multi-stop openings, and it can let you know the best route for the best price. You can find the best routes for air travel, boat, and vehicle, and it helps you optimize your routes.
6. You Get Real-Time Tracking
Another benefit of using a TMS is that you can track your shipments in real time. You have greater supply chain visibility because you can find out exactly where your products are in the process. You can integrate tracking for drivers and products, so you will be able to tell customers the exact location and expected delivery time for their products. This saves time, and it keeps customers happy because they like to have accurate information.
7. You Can Identify Delays
Because the TMS tracks your products until they are delivered, you can get immediate updates if there are any delays. If you find out about a delay, you can update the tracking and inform customers so that they know as soon as possible. This gives you greater visibility, and it also lets you know the frequency of delays over time with a particular driver or shipping service.
8. You Get Greater Order Accuracy
When you are able to track your orders through the transportation process, you will have greater accuracy. There are fewer mistakes, and you can resolve problems without affecting your customers. You can track the performance of drivers, and let them know exactly how they can improve.
You also get added security because you can follow all of your shipments until they are delivered. This makes the process more accurate from start to finish.
Final Words
Using a TMS is beneficial to your company in many different ways. It helps improve data collection, increases accuracy, and reduces costs. You can find the most cost-effective and efficient ways to deliver products to customers, and you get data that helps you improve your company’s bottom line.