TMS Benefits for Both Shippers and Carriers

One of the most frustrating and time-consuming tasks you undertake as a shipper is finding the right LTL carrier for your light shipments. Shippers from retailers, suppliers, manufacturers and more are dependent on less than truckload carriers to move cargo and freight efficiently to their customers. However, with so many fish in the sea, how can you find the top LTL carriers that provide you with affordable rates and top-shelf service? The answer falls in the automated solutions that TMS systems provide users.

Today's transportation management systems are cloud-based solutions that help shippers and the top LTL carriers connect with each other. In this blog post, we'll explore three key reasons why both shippers and LTL carriers depend on TMS automation to streamline their operations. While the systems are customized for each industry, there are three main reasons why both shippers and LTL carriers depend on the automated features of TMS solutions to power daily operations:

TMS systems are customizable
TMS improves the efficient flow of commodities
Customer service is improved

Reason #1 – TMS Systems are Customizable

One of the biggest myths about a transportation management system is that it's only used by shippers. In truth, the modern TMS is simply a platform that can be customized to fit the needs of virtually anyone who operates within the supply chain. A TMS is designed to be an automatic data collection and organizational tool that can be accessed through a dashboard and in some cases, from multiple locations. The dashboard is designed to provide users with a big-picture point of view of the supply chain operations for a company. These dashboards can be configured to fit the needs or tasks that an individual company completes on a daily basis. Due to this flexibility in customization, both shippers and leading LTL carriers depend on them to power their networks.

Reason #2 – The TMS Improves the Efficient Flow of Commodities

Shippers and carriers use TMS solutions for different reasons. But, one common usage is to ensure that special handling shipments are efficiently moved throughout the supply chain. Shippers will often use a robust TMS to find carriers that can transport shipments that require special handlings, such as refrigerated LTL, secured shipment, or other unique shipment types. Once the right LTL carrier has been found, the TMS permits the shipment to be tracked, with instant notifications being sent to all parties within the movement of that freight.

Here is a practical example of how this system works for both the carrier and the shipper.

Let's say that you're a shipper that makes technology equipment that requires cold-storage and enhanced security protocols. The TMS is used to search for carriers who can provide these special services, along with displaying rates, availability and more. This permits the shipper to streamline routing of freight, set up the pick-up and delivery, and upload contact information for stakeholders involved in the shipment. Once the freight is picked up, instant updates on the movement of that freight can be sent to the original shipper, recipient, or other third-parties involved in that shipment.

This permits the carrier to update all parties on weather or traffic delays, improve estimations for delivery time, and then provide proof of delivery notifications. The best part – is that many advanced TMS solutions are cloud-based, meaning that users can access them from any location – and often from multiple devices.

Reason #3 – Customer Service is Improved

Today's consumer demands information quickly and accurately delivered through their communication platform of choice. This is another strong automated feature of TMS solutions used by shippers and carriers alike. The flexibility of custom notifications can be configured to send updates on the fly via SMS text messages, emails, even desktop or laptop device notifications. Automated phone calls can be sent that inform parties involved with the shipment about delivery notifications, changes in delivery point, and also permit recipients to confirm and reply to these automated messages.

Delays in shipping happen and quite often, out of the control of the shipper or carrier. The key is making sure to quickly update the recipient of the freight to permit them to adjust their schedules accordingly. By taking this simple action, customer service is vastly improved.

Final Thoughts

Regardless of the type of business you have, a TMS solution can be a huge benefit. If you have questions about setting up a customized TMS solution for your supply chain related business, contact Redwood Logistics to ask about how your company can integrate this affordable platform into your daily logistics operations.

FAQs

What is a transportation management system, and how does it help shippers lower freight costs?

A transportation management system is a cloud-based platform that helps shippers manage carrier selection, rate comparison, shipment tracking, and notifications in one place. It can lower freight costs by making it easier to find the right carrier for each shipment, streamline routing, and reduce manual work that slows down operations. For light shipments, it is especially useful when comparing LTL options quickly.

How does a TMS help with LTL carrier selection?

A TMS helps with LTL carrier selection by centralizing carrier search, rate visibility, and service details so shippers can compare options faster. Instead of manually checking multiple carriers, users can identify providers that match shipment needs, including special handling requirements. That makes it easier to choose affordable service without losing control of delivery expectations.

Can a transportation management system be customized for different businesses?

Yes, a transportation management system can be customized for different businesses and supply chain roles. The dashboard can be configured around a company’s daily tasks, and it can be accessed from multiple locations in some cases. That flexibility is why both shippers and LTL carriers use TMS platforms to support their own workflows.

How does a TMS improve shipment tracking and communication?

A TMS improves shipment tracking and communication by sending instant updates to shippers, recipients, and other stakeholders as freight moves through the network. It can also provide proof of delivery notifications and alert parties to weather or traffic delays. Many systems support communication through email, SMS text, desktop alerts, and automated phone calls.

Why are cloud-based transportation management systems useful for logistics teams?

Cloud-based transportation management systems are useful because they let users access shipment data from any location and often from multiple devices. That makes it easier to coordinate pickups, deliveries, updates, and stakeholder communication in real time. For teams managing freight across locations, cloud access supports faster decisions and fewer handoff gaps.

How does a TMS help with special handling shipments like refrigerated or secured freight?

A TMS helps with special handling shipments by making it easier to find carriers that can meet specific requirements such as refrigeration or security protocols. It also supports routing, scheduling, and live updates once the load is in transit. That combination is useful when freight needs tighter control than a standard shipment.

Can small businesses use a transportation management system effectively?

Yes, small businesses can use a transportation management system effectively because the platform is highly customizable. The automation features reduce manual tasks, improve shipment visibility, and help smaller teams work more efficiently without adding unnecessary complexity. A TMS can be scaled to fit daily logistics needs rather than forcing a one-size-fits-all process.