Warehouses live and die by the efficiency of their supply chain and logistics network. Their primary role is that of storing merchandise for later distribution.
So, it should go without saying that anything that threatens warehouse efficiency directly impacts the movement of freight altogether!
And let us just tell you, managing a warehouse is no simple feat. It is demanding, time-consuming, and it can even be downright confusing at times.
In this blog post, we will discuss how cloud-based TMS solutions benefit overall warehouses efficiency. We will also outline a few reasons why partnering with an experienced 3PL company might be the wisest decision you make this year!
How Do TMS Solutions Work?
Those who manage a supply chain understand that the key to the efficient movement of freight is organization. Without this one thing, all other efforts are rather fruitless.
Luckily, this is ultimately the primary task of a transportation management system. These platforms search for, collect, and lastly, organize transportation-related data. All in an effort to schedule the movement of freight from the point of origin to its destination.
Not too long ago, a transportation management systems resided on a single computer. It was from this single desktop that users would interact with the TMS platform.
However, today's TMS solutions are offered as a software as a service (SaaS). These modern platforms are connected to a cloud-based server. So, instead of having access on only one computer, the user can connect with any device including laptops, and tablets. More often than not, they can even connect through smartphones to compare shipping rates, received multiple bids from different carriers, organize and schedule a pickup, and even use real-time tracking.
For warehouse distribution centers, having access to this type of robust software improves many areas of their operation. Most importantly, it increases the speed and accuracy of managing inbound and outbound freight. Furthermore, these fully-customizable, scalable, and user-friendly platforms integrate rather easily.
So, the question that most warehouse managers ask about TMS solutions is how they are beneficial for their specific industry?
They Help Find the Right Carrier
For warehouses who simply act as a storage facility and have no say in who picks up or delivers freight, some of the tools within a TMS system are simply not relevant.
However, if you must schedule any shipment, the TMS helps you find the right carrier for that specific mode of movement.
Users can customize carrier preferences, upload or download negotiated contracts with those carriers, and compare the different service levels offered by those carriers.
This type of flexibility allows the warehouse manager to know exactly what they're paying for, and whether it is a good value proposition for the warehouse and their recipient.
Improves Paperwork Control
Warehouse managers understand the importance of maintaining paperwork.
Having a paper trail to review previous invoices or shipping history helps to solve theft issues, accidents, or simply prove the scheduling and movement of freight inbound and outbound of the facility.
TMS solutions digitally store these documents on a secure, cloud-based server.
This type of storage makes it simple to access, locate, and download digital copies of paperwork to any device at any location, and at any time.
Makes Invoice Processing Simple
One of the major headaches that any warehouse manager must deal with is paying bills. When it comes to freight invoicing, the transportation management system is the medicine you need to reduce those headaches.
TMS solutions can be configured to set up automatic invoice processing, invoice auditing, and payment forwarding.
TMS solutions are invaluable platforms that allow warehouse managers to achieve twice the amount of work as usual... with half the effort.
The key to implementing a transportation management system is to first discuss this technology with a 3PL.
3PLs specialize in creating technology solutions that are specifically applicable to individual industries. And yes, this includes warehouse distribution centers. They can build a platform that is easy to use, is scalable, and most importantly affordable.