Here's why you Need to Invest in Good CMS Software

Can you believe that less than 10 years ago most shippers were reviewing the performance of their carriers manually? As in... paperwork!

We've come a long way in the last decade, though. Today, big companies depend on robust, yet easy to navigate software platforms to monitor all carrier-based transactions and key performance indicators. Collectively, this type of platform is known as Carrier Management Systems (CMS). This simple to implement CMS software focuses on one sole task, and it does it amazingly!

A CMS (carrier management system) helps shippers ensure that their carriers are performing efficiently. But more than that, a CMS allows shippers to view various other data that help them make better-informed decisions when finding carriers to partner with.  

In this blog post, we will be discussing the meat and potatoes of modern CMS software platforms. Even better, we will also explain a few of the best practices for using and activating this new technology within your own supply chain.  

A Little Background on CMS Software 

The first carrier management systems focused on allowing shippers to do just a few basic things. These generally included tasks like organizing carrier data, negotiating rates, and other minor carrier-oriented tasks. To make matters worse, most of the time they required installation on a centralized computer. This meant that they were fully dependent upon being installed on a single computer. Obviously, this is far too limiting.

Today's CMS software is a far cry from that outdated technology.

Nowadays, we have this beautiful thing we call the cloud. So, modern CMS platforms, unlike their predecessor, are generally stored and ran from the cloud. This means that users can access them from just about any device, from any location.

Ah! The ability to log in from a smartphone and run a review on your carriers while you run to a meeting, isn't technology a grand thing?

Aside from cutting the cord, modern CMS software also comes packed with more than just the ability to run some basic features. It comes with a plethora of tools that enable the user to handle the likes of everything from service commitment levels to damage reports, and everything in-between.

Overall, CMS platforms are essential for medium to large-sized companies who ship freight on a regular basis. Keeping tabs on all the carriers who are moving your freight across the country is not optional.

How Can Shippers Best Utilize a CMS? 

Like any other software program, a carrier management system can be configured for specific tasks and functions. 

For example, if a company markets its products to consumers with the promise of lightning fast delivery speeds, then utilizing the CMS to track carrier performance based on these specific criteria is the most logical. Luckily, most CMS solutions do this by default.

Checking service commitment levels is another important task that CMS platforms handle. When a company enters into a partnership, there is an agreement on the level of quality of service. This is a service commitment. When a shipment goes out, the software tracks its movement. With all data gathered, it compares it to the expected delivery performance commitment. From this comparison, it is determined whether or not performance is on par with the original commitment.

One of our personal favorite uses of a CMS software is the fact that is simply saves time.

Gone are the days of shuffling through tons of paperwork for hours on end to ensure your carriers are doing their job efficiently. A well-rounded CMS is a tool that holds so much promise and benefit as an overall productivity-boosting solution. The implications are so far-reaching, it's crazy.

Coupled alongside a solid TMS and the expertise of a reputable 3PL, you would be unstoppable.

Final Thoughts

Arguably, the biggest hurdle or objective here is the cost of getting started. However, new technology is making it easier for companies to get started for a minimal investment. And yes, it is indeed an investment, as it will continue to pay off year after year.

Are you considering implementing a CMS software platform for your supply chain? Before making a final decision on which platform is best for your business, reach out to the experts at Redwood Logistics.