The Benefits of Using TMS Software For Freight Shipping

The Benefits of Using TMS Software For Freight Shipping

There are many factors that go into the shipping process, and in order to drive your supply chain, you’ll need to understand how to best optimize your operations. Managing carriers and shipments can be chaotic, but there’s a way for 3PL providers to perform their best work. As a seasoned logistics service provider that already utilizes a transportation management system (TMS) to provide outstanding service, we want to share the numerous benefits of TMS.

So, what is a transportation management system? Essentially, it’s on-demand transportation management software for small and large shipping companies that encompasses all areas of operations, offering reliable solutions to 3PL clients. 3PL companies can effectively manage their transportation services by handling the fundamentals with TMS software. In short, a TMS is a complete, advantageous solution in the world of freight shipping and logistics. While this system has growing appeal, in 2014, 85% of shippers didn't utilize a TMS. To us, that’s a pretty big deal!

Here’s everything you can do with a multi-faceted TMS:

  • Manage orders, fleets, fuel, and more
  • Routing and scheduling
  • Track shipping
  • Optimize loads by reducing empty miles and consolidating shipments
  • Calculate rates
  • Provide feedback to drivers

They increase Productivity and Efficiency

Why wouldn’t you want to manage all of your transportation modes in one place? A logistics platform makes this possible because you can access everything you need to run your transportation efforts at any time. With a TMS, you can manage LTL, FTL, air, ocean, and other shipping methods while preventing any downtime.

Newer transportation management systems work great on their own, and they pair well with existing systems as well. You can plan orders, manage billing, check revenue, and so much more. It’s extremely adaptable because you can customize it to suit your company’s unique needs. This way, both the 3PL and the client benefit.

For 3PL companies, it’s essential to keep track of key performance indicators (KPI). Fortunately, a TMS generates all reports and analytics on one platform. This way, 3PL companies can find ways to better serve their clients by examining internal and external performance.

If there are any last-minute changes, the system can easily manage those—no paperwork is needed. Managers have a full view of the supply chain, meaning they can resolve issues in real time. With a TMS, employees have more time to take care of other business. Ultimately, you’re able to be faster and more reliable with fewer chances for error. You have to fill in the fields with the correct information, and the system takes care of the rest.

Reduce costs

It can be expensive for clients to manage their systems. However, when a 3PL company and TMS software combine, they work together to save money. When you buy a transportation management system, you only need to buy the modules your company will use.

System users can reduce shipping costs, inventory costs, and even administration expenses (as the system allows companies to use less paper). This is because the software will generate suggestions regarding how you can save in specific areas, such as fuel and filling trucks to maximum capacity.

Transportation management systems are flexible; they’re certain to reduce manual work outside of the system, which can save you money. Plus, the money you’re saving can be reinvested into your business. By saving money on moving freight, you can improve your business in other ways.

Provide transparency to clients

Offering transparency is important, and in freight shipping processes, you’ll need to have all the information at your disposal—even down to the SKU level. One of the best parts of a TMS is how intuitive it is to clients. Companies strive to exceed customer expectations, and this is a way to do it. From the ordering process to payment, and from the shipment’s origin to its new destination, the system is easy to use. By using cloud-based TMS software, you’re certain to differentiate yourself from your competitors.

For one thing, when you use TMS software, onboarding new clients is easy. To add new clients, all you need to do is configure your TMS’s settings. A scalable platform, such as a TMS, allows you to effortlessly grow your business.

Clients can choose their preferred carrier and view rates and shipment statuses simply by logging in with a username and password. Plus, clients will quickly receive an invoice and bill from the TMS, and the company will see the payment via the software.

Your clients can find everything in one place via the platform, eliminating unnecessary phone calls. They can simply log on to see if their freight has shipped or if it has been delivered.

Simply put, if you own a 3PL company, a well-designed TMS is a great investment. You can feel more confident in your ability to provide for your clients as well as keep track of your company’s success. There’s certain to be an increase in reliable service because of your TMS, so you can even expect repeat clients. Before implementing your system, be sure to evaluate what your business currently looks like.

A 3PL company will choose TMS software to make life much easier. We know you care about your clients’ satisfaction, and in today’s world, it’s crucial to offer exceptional customer service. Reducing spending is essential to improving the freight transportation experience for your company and your clients.

DTS is proud to use an innovative TMS; we offer several carrier options, reduced costs, and more. From real-time web updates to easy access to your bills, we always have your interests in mind. There are many 3PL providers out there, but we take pride in providing the highest level of service to our clients. When you become one of our clients, you can relax knowing you have full accessibility to our strong partnerships as well as our resources. For over 25 years, we’ve changed the way people think about 3PL. Contact us today at 310-521-1200 for more information about the technology we use for shipment management.

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