We get a lot of questions from manufacturers and distributors about how to get control of their shipping and transportation costs. There’s so much uncertainty in the market in terms of fuel prices, shipping capacity, driver availability it’s important to get—and stay—agile in order to maintain a consistent customer experience. But it’s just as important to keep tight controls over the expense to get your goods to your customers.
Transportation Management Systems (TMS) help companies navigate the increasingly complicated and challenging world of carrier selection, load management, tendering, route planning, and administration of common carriers, contract transportation resource, private fleets and package delivery services. TMS automates much of the complicated management of these resources, allowing transportation professionals to focus on performance and cost, finding the best and most efficient solutions to save time and money while helping meet delivery expectations and keeping customers happy.
What many companies don’t realize, however, is TMS software, especially cloud-based TMS like BestTransport’s solutions, usually more than pays for itself in a remarkably short time. Here are two of many reasons why:
First, TMS solutions can create for you an optimized shipping plan to take advantage of lower cost options that balance transportation time, weight and volume, route, and schedule.
Our solution, in particular, also has a function called Rate Attenuation that compares full truck load (TL) and less than truckload (LTL) methods to find the best overall cost for any given shipment. While it’s always a benefit to reduce costs, with a comprehensive database of possible suppliers and a complete history of past performance and price, TMS can broaden your selections and enhance your ability to get the best service at the best price.
Second, if you have the ability to find the most efficient routing from among all the possibilities, you’ll yield the best expense/delivery performance ratio. Whether it’s your own fleet or contract carriers, better routing delivers better service and lowers costs. And TMS solutions enable that magic—every day.
We’ll explore more ways TMS can help your business in our next post.