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Logistics Insights: Everything You Need to Know About TMS and SCMS

What is TMS?

  • A Transportation Management System or TMS is technology that logistic businesses use to plan and execute the physical movement of goods.
  • Enterprise TMS platforms help businesses optimize how they plan, execute and settle incoming and outgoing shipments.  
  • Transportation Management Systems streamline shipment processes. 
  • Efficient TMS platforms provide profound visibility into logistic companies’ operations.
  • The top TMS applications enable digital documentation of freight movement and fulfillment. 

What are the Benefits of TMS?

  1. Reduced freight management expenses.
  2. Tracking deliveries in real-time.
  3. Increased levels of customer service.
  4. Improved warehouse efficiency and productivity.
  5. Increased supply chain efficiency.
  6. Use of new delivery capabilities.
  7. Ongoing network optimization and growth.

What is SCMS? 

  • A Supply Chain Management Software or SCMS refers to the software applications businesses leverage when performing supply chain transactions, overseeing supplier relationships, and administering any related business processes.  
  • SCMS aids businesses by creating a streamlined, automated process for product development, sourcing, production, and logistics.
  • The functions of these systems are expansive but often include customer-requirement processing, purchase order processing, sales and distribution, inventory management, goods receipt and warehouse management, and supplier management. 
  • SCMS help prepare businesses for their future needs by providing forecasting tools. 
  • By managing their supply chain more effectively with a SCMS, companies can cut excess costs and deliver products to consumers more efficiently.

What are the Benefits of a Digital SCMS?

  1. Enables adaptivity to the ever-changing and growing complexity of supply chains.
  2. Allows more informed decision-making with real-time data.
  3. Fulfills customer expectations for fast, free shipping.
  4. Supports sustainability in providing free, fast shipping.
  5. Bridges the divide with real-time data sharing.

What Makes a Good TMS?

  • Inbound and outbound shipment visibility with notifications.
  • Carrier selection and rating.
  • Planning and route optimization.
  • Instant messaging for each shipment.
  • Cloud-based portals for all stakeholders.
  • Reports and dashboards.
  • Mobile apps for drivers.
  • A TMS that is self-configured and adaptable to your specific needs.

What Makes a Good SCMS?

  • Integration features that connect with all your applications. 
  • Real-time collaboration capabilities:
    • Personalized dashboards.
    • Real-time notifications.
    • Self-service portals.
    • Role-based authorization.
  • Process optimization abilities that automate the order-to-cash cycle.
  • Analytics and forecasting to better mitigate risks.
  • Customization that allows companies to build their own applications.

Competitive advantage with TMS and SCMS:

  1. Embrace end-to-end transparency.
  2. Meet customer wants and needs clearly and effectively.
  3. Utilize data-driven logistics to create new ways of maximizing efficiency.
  4. Leverage shipment traceability to improve traceability, visibility, and communication.

How to Leverage Logistics Technology to Your Advantage?

  • Focus on real-time tracking options and data distribution.
  • Push for improved communications and instructions.
  • Focus on faster problem solving and more intelligent choices.
  • Work towards more substantial predictive analysis and planning options.
  • Find more affordable rates that bring fewer fees.
  • Embrace automated updates and reports for team members.
  • Bring better customer service options to the table by showing status and real-time tracking info to customers.

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