The global transportation management system (TMS) market is booming, as logistics companies seeking to improve efficiency and reduce costs have contributed to its rapid growth. The market size of TMS software was valued at $10.5 billion in 2022 and is projected to rise at a robust 14.8% compounded annual growth rate through 2030. An advancement in technology is paving the way for continuous innovation, and matched with steady growth in retail and e-commerce, is forcing companies to adapt–or be left in the dust. Managing logistics systems is more essential than ever as companies strive to increase productivity in all aspects of their operations throughout the supply chain. To do so, they must be able to capitalize on the features of a TMS to share data seamlessly with stakeholders throughout the transportation network.With the transportation management system market rapidly expanding, companies need a place to turn to make sure every facet of their business blends well with a TMS. This article will explore seven vital ways TMS software can be integrated into the logistics of your company, and how Turvo leads the way in providing software solutions that permit every system to connect with each other in one platform in real time.
What is TMS in Logistics?
A TMS is a software solution that helps plan and execute the movement of freight through the supply chain. Through technology with cloud-based programs that provide real-time reports and data analysis, a TMS helps logistics companies stand tall in the increasingly competitive logistics marketplace. TMS software provides options such as real-time tracking, automated scheduling, order management, fleet management, data analytics, and route optimization. These features help the company save money and improve efficiency along the supply chain, streamlining the shipping process by providing end-to-end transparency to all parties.
Logistics TMS Software: 7 Essential Integrations
Not all TMS software is equal. A good TMS should make every part of the supply chain process better, and should be adaptable and scalable for all companies to ensure they can grow their network without any issues. A top-notch TMS, such as Turvo’s collaborative platform, provides attributes such as real-time tracking and end-to-end communication to automate and streamline the transportation process for improved shipping and tracking. A TMS should be able to be integrated across all systems, helping minimize costs, improve efficiency and increase customer satisfaction. Here are seven important integrations that logistics companies need from their TMS software to stay competitive in a fierce marketplace:
1. Warehouse Management Systems
Labor shortages have hit companies hard in recent years, with 73% of businesses saying they are having problems attracting employees and also having issues meeting workers’ desires to have a flexible schedule. Logistics companies that are short-staffed have employees that suffer more mental and physical mistakes, leading to an overall slowdown in the supply chain process. With these issues, it is imperative for companies to embrace technology to optimize their warehouse management systems (WMS). A WMS uses software to streamline managing inventory and orders in a warehouse with accuracy and efficiency.“You need to use technology to maximize physical assets because you cannot magic them up,” said Mark Picarello, managing director of Pierbridge. “This is very much about the marriage of the WMS and TMS, because you are talking about the entire warehouse, and those things really do need to work together.”Having too little or too much inventory on hand can be rough on warehouses, but integrating with TMS software helps improve the flow of goods. When volume is low, warehouses have to be able to look ahead and see what will be needed in busier times. Wild swings in delivery demand, often caused by the e-commerce explosion, mean the staff at warehouses must be able to track and manage inventory more efficiently to consistently optimize the space available. Otherwise, there will be either wasted space or not enough room to store goods, leading to possible delivery delays.
2. Inventory Management Systems
An inventory management system (IMS) is software that tracks and manages all the inventory of a company. TMS software may be integrated to enhance the ability to monitor the inventory process throughout the supply chain. The systems working together allow for maximized profits and minimized costs, as tracking inventory in real-time dramatically reduces the chance of having either too much or too little of it on hand at a given time. Detailed reports help all parties review details and trends associated with inventory, and automated alerts let stakeholders know when products are close to being out of stock and more need to be purchased. A strong TMS helps you manage your shipments better by sharing data and reducing risk while ensuring deliveries are made on time, helping customer satisfaction soar. Using antiquated methods of tracking inventory often leads to being overstocked or understocked. TMS software lets you accurately track inventory at every possible moment.
3. Order Management Systems
An order management system (OMS) is a software program that manages the back end of transportation logistics. TMS software integrates with an OMS to offer real-time visibility from the time a shipment is ordered until the time it is delivered. A TMS provides data analytics on trends in ordering and delivery to optimize customer service. Offering constant, current data lets companies adjust as needed in real-time to share information across the entire network. This streamlines the order fulfillment process, as everyone can now see where in the process each shipment is easily and quickly.Delivery times and costs may be tracked, managed, and analyzed to see the best way to get products to customers on time. An OMS and TMS can also manage billing, produce shipping documents, review carrier rates, schedule pickups and deliveries, and perform other related tasks as needed. A TMS allows you to monitor the entire order process and analyze it to reduce delays and improve customer satisfaction.
4. Integrated Scheduling Capabilities
Scheduling is easier than ever before when a TMS is added–no more spreadsheets or emails to keep track of. A TMS can keep tabs on all important dates, meetings, and events over a single interface. This results in the huge time saving of having to input data manually, while also cutting back on the chances of missed or delayed shipments or forgotten appointments. Schedules in a TMS can be automated and adjusted to eliminate detention fees by using proper dock scheduling to ensure there are no delays or other mishaps. They may also easily track arrivals and departures as needed and provide complete transparency. A TMS allows everyone to see updated, full schedules in an easy-to-view format in real time. Overscheduling mistakes can be eliminated and life will be much easier by integrating scheduling into a TMS.
5. Accessible Telematic Insights
The application of telecommunications and information to transportation systems allows for vastly improved visibility across the network thanks to real-time tracking and data exchange. Companies can more easily monitor and analyze driver behavior, and better manage their fleet of drivers by measuring their performance and finding strengths and weaknesses. Telematic insights optimize the entire transportation process by sharing data and documents to reduce costs, find inefficiencies, and make sure deliveries are made to customers on time and with the shipment intact and in perfect condition.Drivers also greatly benefit from this system. They are sent real-time alerts and warnings, with data that allows them to improve routes as needed while receiving current data on vehicle location and performance. Shipments can be prioritized, with all documentation complete and easy to access. Drivers may also collaborate in real-time, across the globe if necessary, and even if they don’t speak the same language, sharing information such as traffic delays and other unexpected problems that often lead to a missed shipment.
6. On-Demand Supply Chain Visibility Software
Using visibility software helps all stakeholders track and monitor every stage of the supply chain. TMS software increases efficiency while reducing the time and money spent on problem areas. Real-time data provides access to every workflow and permits everyone to share insights across one network. With improved supply chain visibility and efficiency, customer satisfaction will be raised. Visibility software provides data on the location and status of orders and vehicles, plans routes better, and lets everyone communicate on one platform. The visibility and collaboration between all parties allow the company to better manage all logistics involved in the supply chain.
7. 3rd-Party APIs
Having application programming interfaces communicate with each other allows the TMS to gain access to powerful technology and data that assists in better decision-making. Real-time data on traffic and transportation conditions are now easily monitored and shared, and the location of vehicles at all times allows for better route optimization. Any assistance a driver needs during his trip is now easily available to him no matter the location. APIs allow shippers to access carrier rates and availability to find the best rates and services available. With real-time tracking, deliveries may be monitored and adjusted as needed, with the schedules accurate and updated in real-time. Integrating an API into a company’s TMS encourages everyone to share data and insights along the supply chain.
For Today’s Shippers, Transformative TMS Integration Starts With Turvo
TMS is becoming the logistics industry standard as its use skyrockets. By integrating the value of what TMS software brings to streamline the supply chain process and work with other systems across the network, the whole is even greater than the sum of its parts. All people and systems are now connected in real time, and communicating more effectively allows for data analysis and insights that can take your business to the next level. The logistics infrastructure is headed to exciting places, and companies that aren’t using TMS software–and integrating it across all systems–will be quickly staring up at their competitors.Turvo’s Integration Hub makes connecting everyone in your business together effortless. Turvo offers rapid implementation to connect your teams into a one-stop system and have everyone collaborating for the good of the company. Its visibility offers the most relevant data exactly when you need it and integrates all important systems together into one harmonious platform. With the improved collaboration and software that Turvo provides, it can expand networks using your current systems and allows for the integration of third-party systems, with data to help you analyze and expand. Don’t be left behind in this rapidly changing business environment. Schedule a demo with Turvo to find all of the numerous ways it can help your business meet its needs and stand out from the crowd.