Top 5 TMS Benefits Your Solution Should Provide

TMS Benefits

Your transportation management system (TMS) is there to connect every aspect of your supply chain, so you can fulfill customer orders and meet market demands timely and effectively. The right TMS will improve transparency, service, connection, communication, forecasting, reporting, and decision making to improve your business operations. 

Not all transportation management systems will offer the same services and benefits. So what should you look for in your TMS that’s going to show strong results and success?

In this blog post, we look at the top 5 TMS benefits that will push your business to the next level with efficiency, scalability, and transparency. 

Don't need to read another article and already know that you need help implementing a new TMS or optimizing your current system? Reach out to the team here at Redwood and let us help get you up and running!


What Is A TMS? 

A transportation management system (TMS) is a software that connects internal and external processes for the logistics process. The TMS helps facilitate the interactions between enterprise management systems and warehouse systems, as well as cultivating a network of shippers and carriers throughout the supply chain. It functions as the primary hub for executing transportation operations as well as organizing all logistical needs for a business or delivery carrier. 

A TMS software will often provide services like route planning, load optimization, freight audit and payment, invoicing, advanced shipping, order visibility, track and trace, carrier management, customs clearance, transport alerts, and measurement of KPIs. 


Learn more about transportation management systems, the tech every LTL shipper needs


TMS Benefits

  • Plans and optimizes route efficiency 
  • Streamlines vehicle load optimization
  • Collects vast amounts of data
  • Reports and analyzes data
  • Assists in financial planning and strategy 
  • Reduces freight expenses
  • Offers freight negotiation
  • Provides scheme simulation
  • Assists with transportation provider selection 
  • Acts as a network hub for supply chain
  • Offers access to the transport industry best practices
  • Tracks and traces shipments
  • Enhances supply chain transparency 
  • Develops operational efficiencies
  • Minimizes loss, damage, and errors
  • Improves customer service and communication


Read: 3 Reasons Every Shipper Should Use A TMS


5 Key Components of a Strong TMS

Not all transportation management systems are created equally. You can get “good” TMS systems, or you can get incredible ones that will enable your business to grow exponentially. If you’re making the investment in a TMS, why not go for exceptional right off the bat? 

Here are the five aspects of a TMS that are truly unique. If your TMS has these capabilities, then you’ve got a system that will bring you on the path towards a future of growth and progress. 


Cloud system 

Today’s most advanced logistics systems are hosted in the cloud.

A cloud-based TMS is offered as Software as a Service (SaaS) that can be accessed online from a remote location. This is by far one of the best TMS benefits. The fact that the user does not have to host the server themselves makes this a less capital intensive and easier to implement option that also allows for continuous and seamless upgrades with each new version of the software. This kind of accessibility enables a high level of scalability and growth. 


Blockchain connectivity 

Blockchain technology connects every partner to the processes they need to be able to monitor as a team. Fortunately, blockchain tech has also begun to play a rather central role in most modern TMS platforms.

TMS platforms that make use of the blockchain allow for every movement, transaction, and detail of data that is recorded in the cloud be made available for all stakeholders to access. The blockchain is a fast, secure way to pull together all partners for a high level of transparency in the supply chain. It allows for less friction, faster invoicing, fewer errors and losses, better timelines, and a heightened analysis of goods movement. 

To stay ahead of the curve (or event at least to stay up with the times), your TMS should be blockchain accessible. Learn more about the future of blockchain and how a TMS benefits your supply chain


Read: Why Blockchain Solutions Should Be In Your Plans For 2020


System integrations 

Your TMS should be able to communicate with all of your other logistics systems, like your order management system (OMS), enterprise resource planning (ERP), and warehouse management system (WMS). These all work together to ensure you can deliver on customers’ orders effectively and efficiently. All management systems have to work in tandem to streamline the process; otherwise, you end up running into even more roadblocks and inconsistencies along the line. 

The transportation management system is often the “missing link” for supply chain management. Warehouses have systems and businesses that have systems, but it’s the in-between transport that ties it together to make sure goods are delivered from A to B with success. That’s why your TMS needs to be able to integrate and evolve with your other management systems, operating as the central hub of intellect. Without it, there’s still a major portion of the supply chain that’s left in the dark. 

The goal is total transparency and connectivity.

Note: Transportation management systems that can link to blockchain tech often also offer a lot of integration options. 


AI and machine learning 

Artificial intelligence is coming to TMS and other management systems, and it’s revolutionizing operations. Not only can transport systems connect through the cloud, but machine learning can also analyze and leverage a tremendous amount of data within seconds.

AI helps identify issues in real-time while offering recommendations for decision making. It can also enhance forecasting in terms of inventory, transportation, and production plans. This enables a faster fulfillment of customer orders and greater transparency along the supply chain, which radically enhances the customer experience. Machine learning is also utilized to efficiently utilize company assets, resulting in fewer losses, greater safety, and higher profit margins. 


Read: How AI and IoT Can Change Transportation Management 


Logistics partnership

A lot of companies are opting out of the rigorous (and often unsuccessful) process of attempting to implement a transportation management system all on their own. Instead, smart organizations are choosing to work with a third-party logistics company (3PL) or supply chain partner, like Redwood Logistics TMS Implementation, to do the heavy lifting for them. Not only does this ensure strong and effective implementation, but it also improves the service of the TMS in the short- and long-term.

When working with a cloud-based TMS through a 3PL, you get access to a wide array of software across multiple clients. This reduces costs while also improving AI operations that are used for your business. You only have to pay for the software you need, while still tapping into some of the industry’s leading information and operations. 


TMS implementation

Implementing a cloud-based TMS isn’t easy, but it’s crucial in order to have a comprehensively connected system internally and externally. A TMS can allow for the highest level of transparency, which improves daily operations, reduces costs, minimizes errors, and streamlines operations. 

You don’t have to make the decision or do the implementation on your own, though. Working with a trusted partner for your TMS ensures you get the most connected service, with a successful launch—and that nothing falls through the cracks.

Still not sure if these 5 TMS benefits are enough to get you to invest in a new, better platform? Drop us a line and let's talk about what you are working with and how to optimize it!