Understanding the capabilities of a transportation management system, or TMS, and its impact on the modern supply chain network requires a good understanding of these systems and what they entail. The modern TMS is a logistics platform used to improve the supply chain, including planning, executing, and optimizing the day-to-day operations and processes. Often, these systems are part of a more extensive supply chain management setup that helps managers and customers stay connected. A TMS helps companies remain competitive and allows faster and more directed growth and expansion, reports Inbound Logistics. However, a vital question must still be asked- have the capabilities of a transportation management system today reached their maximum efficiency? Can further progress be made, and can the TMS systems today be improved?
Breaking Down the Form and Function of a Typical TMS—What It Is and Its Purpose Within the Supply Chain
Since the beginning, TMS systems have played a vital role in the modern supply chain network. It has provided a means for easier collaboration and helped to optimize productivity and capacity within the current supply chain. By improving overall visibility into the movement of freight and boosting the levels and efficiency of shipment tracking, the capabilities of a transportation management system become recognized within the shipping and transportation industry.
Issues That Arise When Automation, Digitalization, Push Notifications, and Technology Are Not Utilized Efficiently
Understanding the impact of technological advancements and digitization makes it easier to maximize the benefits of any TMS platform. Uncovering the full capabilities of a transportation management system and seeing whether they are still effective and viable in today’s shifting and changing market presents a challenge. It requires a close examination of some of the significant issues that can arise when technology gets ignored within the supply chain:
- Increase in overall cost from end-to-end- including managers and customers.
- Wasted time overseeing mundane tasks that could easily be automated.
- More occurrence of issues caused by human error and poor decisions.
- Poor visibility and tracking from end to end on critical shipments.
- Reduced levels of customer service and satisfaction across the board.
- Poor communication regarding order status and disruption resolutions.
- Higher chances of shipments ending up lost or damaged during transit.
- Lackluster data analytics allows inefficiencies to go undetected.
These and many other issues can plague shippers and carriers when little to no TMS innovation remains in play. The capabilities of a transportation management system are only as good as the work that goes into them. Embracing and utilizing these technological advancements and taking full advantage of the tools available is critical for optimal performance with any TMS platform integration.
How the Newest Advancements in TMS Integration Applications Improve End-to-End Network Efficiency
A lack of insight and communication can lead to significant inefficiencies within the modern supply chain. However, with suitable advancement and TMS integration, there are many ways to improve end-to-end efficiency throughout the entire supply chain network. Some benefits of the capabilities of a transportation management system today include:
- Improved tracking and monitoring to lower the chances of delays and bottlenecks due to scheduling oversights or issues.
- Greater chance of maximizing capacity and improved track record of securing adequate inventory when needed.
- Fewer challenges and fewer issues dealing with volume and production rates, both during slow and peak seasons.
- Reduction and near elimination of idle time and dead haul miles resulting from poor scheduling and capacity management.
- Faster response to disruptions and issues and more substantial resolutions to promote better customer experiences.
The capabilities of a transportation management system remain closely connected to the overall integration and utilization of the tools and platforms available within the supply chain network today.
Align Your Tech Stack With a World-Class Collaborative Logistics Platform
Proper onboarding and solid application of TMS systems can help transportation service providers maintain a competitive advantage and higher profit margins. Within the modern-day supply chain, these systems allow shippers and carriers of all sizes to realize the benefits that automated processes and innovative technology can bring to their operations. Discover the capabilities of a transportation management system and what a modern TMS partnership can contribute towards a competitive advantage. Connect with Turvo to learn more today.
