Last time we started talking about how using Transportation Management Software can bring significant benefits to manufacturers and distributors—and generate significant ROI for the business. Let’s look at another way this happens:
First of all, the means to manage a network of possible freight carriers is built in to a TMS solution. By identifying and designating preferred carriers for specific routes or shipments, they can be given first priority in tendering logic, which in turn assures the maximum opportunity for using lower cost and reliable resources. Of course this can be done manually, but how long does it take and how difficult is it to keep track of carriers, routes, and performance? Best Transport offers an exclusive feature called Tender Roll that manages the tendering process by offering the load to one provider at a time and, if rejected (or non-response within the allowable interval), automatically making the offer to the next carrier on the list. Best Transport can also handle straight tender (one carrier), Quick Tender (multiple carriers at the same time), and Spot Quote (auction) to contract carriers or all available carriers in the database.
It follows, that when you have a wider range of choices, it’s easier to compare prices, find the best price, and have a basis for contract negotiations with rival providers. Automated tendering can enforce a disciplined process of offering loads to carriers in a defined sequence, assuring the best priced carriers are given priority, if you so choose.
The key to savings without sacrificing performance is control—the control you get from a full-featured TMS solution. Manual processes can’t match TMS for speed, accuracy or savings, and outsourcing to a 3PL, while offering some advantages in certain areas, introduces challenges in others. We’ll talk about that in a future blog.