The transportation industry has been one of the sectors to test the emergence of technology advancement and innovations. As one of the key sectors that needs to get more efficient results, it is important to constantly optimize performance and results through the application of technology and modern communication systems.
Transportation management solutions have been sought after more because of the high growth rate. It is aimed at reducing transportation costs and increase reliability through collaboration across all modes. It allows organization to manage their international and domestic transportation, tackling supply chain complexity with integration and to partner systems with a single control layer for monitoring the life-cycle of transportation. The bidding and awarding of contracts processes can be completed on the platform, execution monitored and changes made based on detailed analysis of transport data available. Shippers, suppliers and logistics service providers all collaborate in the cloud with transportation management system. A typical scenario would include both inbound (procurement) and outbound (shipping) orders to be evaluated by the transportation management systems (TMS). Its planning module offers the user various suggested routing solutions. These solutions and data can be assessed by the user and are passed to the transportation provider analysis module to select the best mode and least cost provider. Once the best provider is selected, the solution typically generates electronic load tendering and traces to execute the optimized shipment with the selected carrier and supports freight audit and payment.
Transportation Management Systems (TMS) products serves as the logistics management hub in a collaborative network of shippers, carriers and customers. It’s software modules include route planning, load optimization, execution, freight audit, payment, yard management, advanced shipping, order visibility and carrier management. A fully deployed TMS brings about the reduction of costs through efficient routing, load optimization, mode selection, improved accountability, visibility into the transport chain, flexibility for last minute contingencies to alter the delivery plans and key supply chain execution requirements.
Transportation management systems comprises of sourcing, rating, planning, tendering, freight payment and audit. These help to reduce transportation costs. They eliminate billing errors in the audit process, standardizes globally on one transportation management platform, reduces transportation provider switching costs by gaining faster deployment and low cost of ownership.
There are many benefits of transportation management systems that manufacturers, distribution companies and anyone who ships freight can use. If you can look at your freight and transportation department as more than just a cost, then you are thinking in the right direction on how to fully help your business leverage on transportation management system for the maximum return on investment (ROI).
Transportation management systems helps companies move freight from origin to destination efficiently, reliably and cost effectively. It encompasses solutions for moving freight in all modes and also includes intermodal movements, freight transported inbound or outbound, domestically or internationally using transport assets owned either by the company or an outside service provider. The freight managed by a transportation management ranges in sizes from parcels to bulk commodities.
The application offers so many ways to save money or drive value in the supply chain network, and blue-chip companies deploy this application to reduce freight spending based on proper process enforcement, analysis and optimization.
Shippers that implement TMS solution compared to traditionally methods of transportation management perform better in terms of service levels and freight savings. Transportation management system with reporting and analytic details enables you to see the effect of your choice within the system leading to better customer service delivery.
The more you use the application the more you decrease time on freight management and more time working on other projects such as warehouse duties and other areas within the transport sector. It also gives you the overall combined supply chain visibility you need to make better business decisions that helps drive further cost savings and decreases inefficiencies within the system. A robust application also offers the ability for you to optimize the way you transport your goods and services. It gives you confidence that your customers are receiving their orders on time and allows you plan better for your inventory at hand. Accurate forecasts of your inventory is very important because of the increase in e-commerce transactions, employing proper accounting process through payment, auditing and consolidation services. Within a TMS solution an entrepreneur can make quite a lot of profit and this is what big organization globally are leaning on.
Being fully convinced of the benefits of technology in driving an efficient and more reliable transport system, there is urgent need for Nigerian (public and private) companies and other transport organizations within the African region to invest more in the knowledge and application of intelligent transportation systems which is the solution to achieving better output and results.
Festus Okotie
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
