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7 Reasons why shippers want to Implement a Transportation Management System (TMS)

7 Reasons why shippers want to Implement a Transportation Management System (TMS)

Why would someone want to implement a TMS?

Implementing a transportation management system (TMS) can be daunting as initial unfamiliarity can be intimidating, especially for those not technologically inclined or who have limited experience with similar software. So for those still on the fence, understanding exactly why so many businesses make the leap to bringing one into their operations — and what kind of benefits they experience — can be the perfect place to start. 

Jumping into Transportation Logistics 

Let’s imagine you are operating a business experiencing challenges in one or more areas of your transportation management processes. Below, we’ll explore those areas, and how making the decision to subscribe to a TMS could help to address them. 

Operational inefficiencies: A TMS would streamline your transportation operations by providing centralized control and visibility over your entire supply chain. It enables efficient management of transportation processes, including order management, carrier selection, route optimization, and load planning. 

Accounting errors and cost constraints: Your TMS will enable your business to identify cost-effective carrier options, negotiate favorable rates, and minimize empty miles. Costly errors are avoided such as duplicate orders or inefficient route planning.

Logistical blind spots and losing track of shipments: Having real-time visibility throughout your supply chain, your business can track shipments, monitor delivery status, and receive alerts in case of delays or disruptions.

Ineffective collaboration among stakeholders: Your TMS will act as the perfect communication system, connecting suppliers, carriers, and your restaurant seamlessly. It facilitates efficient collaboration, ensuring smooth information exchange and timely updates. 

Slow or unsuccessful strategy development: By analyzing transportation data, your business can gain valuable insights into its operations, identify trends, and make data-driven decisions. These insights can help you optimize transportation strategies, identify areas for improvement, and drive continuous operational enhancements.

Inability to keep up with changing business needs: Subscribing to a TMS allows your business to scale your transportation operations to match your needs. Whether it’s handling a growing volume of shipments, expanding into new markets, or integrating with other systems, a TMS provides the flexibility to grow.

Compliance issues and customer complaints: A TMS helps to improve risk management capabilities, allowing businesses to ensure compliance with transportation regulations and standards. By improving adherence to regulations, your business will avoid penalties, maintain a good reputation, and mitigate potential supply chain disruptions.

Embrace reality and turn your thoughts into action by trying a demo of Shipwell’s TMS today!