How Does a Transportation Management System Work?
The system typically starts by receiving orders that need shipping. After order entry, the TMS evaluates transport options. Using criteria like cost, time, and distance, it suggests the best carriers.
Transportation Management Systems work with various data sources. They use information from carriers, such as available routes and schedules. A TMS can also automatically generate shipping documentation.
Why is a Transportation Management System Important?
TMS solutions provide numerous benefits to businesses. They help reduce shipping costs by optimising routes. Additionally, they aid in shortening delivery times, which improves customer satisfaction.
Tracking is a key feature of these systems. Businesses can monitor shipments’ progress, and this transparency allows for better planning and response to issues.
What Features Should You Look for in a TMS?
- Carrier Management: Tools for managing relationships with transportation providers.
- Freight Auditing: Features to check and approve shipping invoices.
- Custom Reporting: The ability to create tailored reports for insight into shipping activities.
Businesses should evaluate features based on needs. Integration capabilities with existing systems are crucial. A TMS should be user-friendly and offer a good return on investment.
How Does a Transportation Management System Enhance Sustainability?
Through route optimisation and shipment consolidation, a TMS aids businesses in reducing fuel consumption, which helps in lowering their carbon footprint. Some of the systems provide analytics around emissions; thus, allowing companies to measure and improve their environmental impact.
