What are some function aspects of a transportation management system TMS )?

A transportation management system, or “TMS,” is a platform that’s designed to streamline the shipping process. It is a subset of supply chain management concerning transportation solutions. A TMS allows shippers to automate the processes they have in place and receive valuable insights to save time and reduce spend on future shipments. 

Distribution companies, e-commerce organizations and anyone else that moves freight on a regular basis realizes there are many moving parts to the shipping process, both literally and figuratively. From quoting to delivery, those shipping freight are almost always looking for ways to optimize spend and improve processes. Thanks to transportation management systems (TMS), shippers have a solution on their side to do just that.

Benefits of TMS.

• Technological capabilities: With a transportation management system, you as the shipper will have the technology you need to make routing decisions based on quotes, transit time and carrier mix. This centralized location for quoting will eliminate unnecessary stress and time spent during the booking process.
• Simplify processes: A TMS can help to simplify the carrier selection process by allowing you to evaluate the merchandise being sent and matching it with a carrier in the network. By managing this entire process in one place, you will be able to revisit past shipments and quickly match similar loads to the appropriate carriers.
• Track freight: With a TMS, you can track freight that’s on the road and even receive alerts to any transit exceptions or unforeseen delays from one location. It’s impossible to control human error or Mother Nature, however, a TMS will let you see when delays are occurring and why.
• Business insights: Robust transportation management systems will offer you in-depth insights and reporting capabilities. For example, let’s say you oversee the shipping process for 20 locations that each send five shipments out a week. That’s 100 shipping invoices to create and shipments to evaluate each week. With a TMS, information will all be stored in one location and custom reports can be created to analyze things like the discrepancies between rates and final invoices.

Types of TMS.

There are many types of TMS to use in your daily shipping processes. However, at Freightquote by C.H. Robinson we rely on our Enterprise Transportation Management System and team of industry experts. Enterprise TMS allows you to automate your current shipping process while gaining valuable insights that save you time and money. Enterprise is ideal for large shippers who need customized solutions such as dedicated account managers customer specific pricing, and more. 

Shippers buy or subscribe to a transportation management system (TMS) for a number of other reasons, and the TMS product or service offering today continues to evolve, with return-on-investment being found in an increasing number of functions.

3Gtms Resources

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Companies

• 3Gtms is the fastest growing, Tier-1 transportation management system (TMS) provider. It is dedicated to helping shippers and logistics service providers gain a competitive advantage through technology. Whether you move $5 million or $5 billion in freight, its 3G-TM solution seamlessly manages the…

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January 17, 2017 · By Peter Moore ·

Often times I read or hear in a meeting that the return on investment (ROI) derived from a transportation management system (TMS) is from load optimization.

The heuristics of these powerful tools can indeed assist the less-than-truckload (LTL) shipper in building multi-stop routes for consolidated loads or prioritizing and tendering to truckload and carriers in a price-ranked priority.

However, shippers buy or subscribe to a TMS for a number of other reasons.

The TMS product or service offering today continues to evolve, with ROI being found in an increasing number of functions.

For shippers seeking intelligent technology to help discover, plan and execute transportation cost and service opportunities, exploring the range of TMS functional options are a must.

With that goal in mind, I’ve listed seven of the more popular functional options with a thought on how the ROI can be determined:

1. As an ERP interface. TMS is able to capture and translate the 12 to 40 various data fields of a complex shipment to the simple needs of the ERP - typically less than 10 fields. This saves on the re-entry of data and enables the use of standards in xml and EDI with carriers.

2. As a freight payment/settlement application. From the traditional match-pay to the more sophisticated dynamic settlement processes, the TMS has earned a reputation for double digit savings and staff cost reductions. Whether in-house or through a service provider, these tools serve as systems of record, electronic auditors, communicators and bank interfaces.

3. As a complex route builder. The TMS functionality in international multi-modal has made great strides in the past decade. The use domestically to build multi-leg trips, thus minimizing empty miles on a day/hour basis, can make this tool indispensable to both carriers and shippers with a regular need to execute elaborate orders.

4. As a backhaul planner. Today’s TMS tools incorporate GPS, arrival time calculators and automated communications to discover, plan and execute opportunistic runs. Factors such as hours-of-service (HOS) regulations and equipment maintenance can be incorporated as well, thus making an impact on cost and service metrics.

5. As a customized bill of lading (BoL) generator. A TMS can edit and transmit a shipper-designed BoL that includes contract provisions tied to a shipper approved carrier contract. A new BoL is printed/transmitted with the latest contract provisions to the shipping location on an as-needed basis, thus avoiding the use of a carrier document with possible hidden rules and limitations.

6. As a performance tracking tool. A TMS is uniquely positioned to match an order with a bill of lading and then the many status messages that indicate how the carrier performed. Today, this tool is also being used to illuminate the shipper’s “performance to promise” as well, with data captured on ready-to-ship times verses carrier requested pickup times and other delays that may make an impact on driver HOS, fuel and equipment utilization.

Of course, there are more functional options in a TMS, and leading shippers and 3PLs that take full advantage of the power of the application beyond load consolidation will often mention the reasons above as to why they’re seeing such terrific ROI.

7. Let me leave you with one tip for acquiring TMS functions: Any implementer or service provider worth their salt will provide detailed demonstrations of functionality using scenarios unique to your specific circumstance.

Insist on real, working applications so you can gain maximum benefit from your investment in this technology.

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