Getting a product from point A to point B might sound simple, but pull back the curtain and you will see the complexity of what’s involved in a well-calibrated and efficient Transportation Management System (TMS).
TMS, a division of a supply chain management focuses on transportation methods. It includes inbound and outbound transportation providers to come up with the best suggestions for routing options and the best cost.
Other Focus Of A TMS Include:
- Planning and improving ground transport rounds
- Managing motor carrier, rail, air and maritime transport
- Tracking of transportation
- Load volume of vehicles and best route
- Shipping orders in batches
- Negotiating freight costs
Key Benefits Of Tms
A top benefit to TMS is that it green-lights shippers to automate the processes. And it also provides invaluable insights on how to save time and reduce spending.
Other benefits of TMS include:
- Technological Expertise: With a transportation management system, the shipper will have the technology needed to make routing decisions based on quotes, transit time and carrier options.
- Simplifying processes: A TMS helps to simplify the carrier selection process by allowing the shipper to assess the merchandise being sent and matching it with a network carrier. By managing this entire process in one location, the shipper can check past shipments and easily pair similar loads to the appropriate carriers.
- Tracking freight: With a TMS, shippers can track freight and receive alerts to unexpected delays. The system lets them see when delays are occurring and why.
- Business insights: Solid transportation management systems offer detailed insights. The system allows information to be stored in one location and individual reports can be generated to analyze differences between rates and final invoices.
Tms Offers Flexibility At Astiora
At Astiora, a subsidiary of K&J Enterprises, the TMS makes it easy for the business to talk immediately with carriers about changes to shipment plans and receive status updates on scheduled pick-ups and deliveries. “It’s great to have the flexibility to reschedule or adjust delivery schedules to accommodate our current staffing and facilities schedules,” the website at Astiora.com states.
The company can easily reschedule deliveries and pick-ups based on operational needs or at the request of a client. Notification is given instantly of any changes and workers check the schedule daily to maximize staffing and to make necessary changes.
Top Tms Procedures
Transportation management systems deal with four key management procedures:
- Planning and making decisions – TMS define the most efficient transport strategy based on set guidelines that have lower or higher importance as stated by the user policy: transport cost, shorter lead-time, and fewer stops to guarantee quality.
- Transportation Implementation – TMS allows for the implementation of the transportation plan, such as carrier rate acceptance and dispatching carriers.
- Transport follow-up – TMS allows tracking any physical or administrative operation: tracking each transport event such as shipping from A, arrival at B, customs clearance; invoicing and booking documents; sending transport alerts, such as delay, accident, unplanned stops.
- Measurement – TMS have or need to have a logistics key performance indicator (KPI) reporting function for transport.
“Part of our success is due to the fact that we are never satisfied,” the Astiora website says. “Our team is always on the lookout for the newest technologies and latest business philosophies that will help us take not only our business but those of our customers to the next level.”