3 Key Processes Of Transportation Management System

Transportation Management Systems are really meant to increase the ROI and efficiency of your logistics company and has become a mandatory element for an effective logistics management. The transportation management system or TMS helps your make your logistics management more organized and accurate.

Transportation Management software are aimed at bringing down the time, cost and improved profit. If the time and cost taken are decreased, then there is no doubt that your profit would sour high. All you need to do is to learn to manage this amazing tool in the right way. If you are not managing TMS in the proper way then you cannot expect your business to improve.

Here I would like to talk about the 3 key processes of a transport management system, which have an influential role towards the success of your logistics business.

1) Planning and Decision Making
Planning and Decision making are the most essential parts of any successful organization and cannot be ignored at any cost. If the planning and decision making are not up to the mark, the business is sure to suffer. There have been many instances when many companies have vanished due to lack of proper planning and decision.

A transportation management solutions helps you to plan your logistics business effectively and categorize your transport schemes accordingly based on the importance as per user policy. Some of the major things that plays vital role in proper planning and decision making are transport cost, shorter lead-time, fewer stops, flows regrouping coefficient etc.

The TMS systems is also known as logistics management system and helps you to calculate your transportation cost and adjust your routes so as to experience a decrease in the transportation cost. It helps you to find out which routes yields you better profit margin and which are the stops that needs to be avoided without harming your profit ratio.

In the end the report generating facility offered by this vehicle management system helps you to analyze your logistics management in a much better way. You can even change the scheduling and routing of your vehicles for better results. The report helps you to plan better and make decisions based on that.

2) Customer follow-up
TMS helps you to experience a better customer relationship and follow up due to its enhanced features. One of the advanced feature that makes the tool stand out is the GPS vehicle tracking facility, which helps you to track your vehicle with the help of satellites. With this you would be able to inform your customers as where the vehicle is and when their goods would be delivered. It also helps in effective billing, accurate report generation, documentation etc, which makes your customers happy and satisfied.

3) Measurement
A transportation management system offers you a detailed and customized analytics report which would help you to understand your business in a much better way. The report would help you to find out the areas that needs improvements and also help where you stand when compared with the previous months. Certain reports helps you to drill down more deeper so as to get a better assessment regarding your vehicle routing software.

Does Achieving the Best Shipping Solutions Require Hiring a Logistic Expert?

Shipping products without the aid of logistics is like journeying to an unfamiliar destination without the aid of a map; eventually, you get there, but it usually takes more time and money than you anticipated. Just as an uninformed driver makes more stops and takes more roads than necessary to arrive at his destination, an uninformed shipping process results in freight making more stops and taking longer routes than necessary, increasing the cost of the shipping process. Realizing this, shipping companies that don’t have an “in house” logistics department will seek the advice of a logistic expert. But the type of logistic expertise that they retain can also have a significant impact on the cost of the shipping process.

When a company doesn’t have its own logistic expert, it has two options for implementing shipping logistics: hiring a third-party logistics (3PL) provider, or implementing logistics software. Traditionally, shipping companies have opted for 3PL. But today, shippers are increasingly choosing logistics software over 3PL for two reasons: the software offers more shipping options and it costs significantly less than hiring a 3PL provider that offers the same level of service. For companies that are considering hiring a 3PL provider, it’s important to realize that not all 3PL providers are the same. Currently, there are three types of 3PL providers: standard 3PL providers, service developers, customer adapters and customer developers.

Stand 3PL providers offer transportation logistics, but not as one of their core competencies, which ends up making them attractive due to the low cost of their services. Service developers perform transportation logistics as their core competency, but typically emphasize in “value-added” services, such as cross-docking and specific packaging. Customer adapters oversee a company’s logistics process, but don’t specialize in innovative shipping solutions. Customer developers oversee the logistics process and do specialize in innovation solutions. But the price of hiring a customer developer is can be similar to hiring your own logistics experts.

Moreover, 3PL often places small and midsize companies in the position of hiring logistics services that don’t offer comprehensive, innovative solutions or attempting to hire unaffordable logistics services that do; a situation that makes companies realize the value of logistics software, which allows them to realize comprehensive, innovative shipping solutions that increase the timeliness of the shipping process while reducing its price by eliminating the following costs: TMS software costs, 3PL costs, gain shares, freight margins, common rate base licensing costs and annual software maintenance costs.

Logistics software is available on either a software as a service (SaaS) model or as an onsite software solution, with the former offering the advantage of remote system access. But in either case, the software allows its customers to make expert logistics decisions through an easy to use interface. Research shows that companies who implement logistics software can reduce their annual shipping costs by 10 percent after the first year.

Warehousing Management Software: One Of The Best Investments You Can Make For Business Here’s Why

Warehousing software can be expensive which is why in this tough economy it is easy to understand why a business owner, whether they be large or small would not want to take on an unneeded expense.

After all the ultimate goal of business is to keep expenses down so you are able to maximize profits to the best of your ability. However, certain things you can purchase should not be looked at as expenses.

These things should be looked at as assets, tools for business to grow and function more efficiently. Warehousing management software offers just this. There are a lot of businesses who have probably heard of using this type of software, but many of them are still not sold on how powerful it can be for them. Not a problem, you can easily be convinced. The advantages are plenty.

The entire purpose of warehousing management software is to enable a user to get an instant picture of certain information that is very pivotal.

Quick access means that warehouse operations function far smoother than what they may be at the moment. You will be able to cut back on various costs, and as a result increase your bottom line.

For starters, you need to constantly be aware of how much inventory is in your warehouse. You may already have a system in place for this, but it can be made far more effective.

Warehousing management software will help you know instantly how much inventory is in your warehouse, whether it be for specific parts or for everything.

You need to know how many orders are being shipped at the moment, this gives you an idea of how much product is being moved. The logistics software is going to help you get an instant picture of this as well.

At times your business is going to have pending orders. There are several processes involved in this, and you need to know what they are. Warehousing management software will easily alert you to the various stages of processing when it comes to pending orders.

Does your business hire staff? Odds are it probably does, and you need to make sure they are being as productive as possible. You cannot afford to pay people who are not being productive right?

Warehousing management software will allow you to set up a system so that you can monitor staff productivity details. This enables you to make sure your staff is performing the way they should and that your warehouse is operating the way it is supposed to.

You also can use the software to see how many goods have been shipped by the warehouse for a specified period of time. This information is going to be needed at times, and you can easily search for it for any time period you wish.

Businesses that are smaller and have not had the chance to automate their warehousing management process will definitely benefit from using warehousing management software.

Logistics software is a very simple way to automate your warehouse management process without having to interrupt the flow of your business. You can be up and running in no time and if you need help it is easily available.

Do not let the cost of warehousing management software deter you from deciding to make an investment in it. The longevity of your business is important to you right?

Having this type of inventory software at your disposal will benefit you in ways that will protect your business from the tough economy.

Your business needs to operate as efficiently as possible, and you definitely cannot rely on the old way of doing things. Make the investment in some good warehousing management software today and start realizing the benefits mentioned in this article.