TMS: Know what it is and its advantages

Currently, many companies still use manual processes to control the demands and deliveries of their products, however, this ends up generating errors, delays in service, poor service, among other problems; therefore, relying on a TMS is a solution to improve processes and generate savings for the company.

What is a TMS?

TMS is an acronym for Transportation Management System. It is a software that collects, stores, processes and distributes information related to the transportation of goods in a company.

A TMS helps a company select the optimal mode of shipment and the best carrier, based on cost, efficiency and distance, including optimization of multi-leg transportation routes. A robust TMS can provide visibility at every stage of the supply chain and, along with global trade management functionality, can also provide information on trade and rates, and whether there are potential delays that may occur.

 The execution functions of transportation management systems vary widely, but can include freight matching and communication with carriers, documentation and tracking of shipments, as well as assistance with freight billing and settlement. Some TMS provide track and trace services, enabling real-time information exchange between carriers, distributors, warehouses and customers. They may also have functionalities that handle complex international logistics, including the delivery of appropriate import and export documentation to ensure that shipments comply with trade regulations.

TMS optimization capabilities typically include the ability to measure and track performance with reports, dashboards, analytics and transportation intelligence.

What are the benefits of using a TMS?

The benefits of having a TMS system are numerous, the system offers various functionalities that address the most varied logistics needs of a company. Some of these benefits are:

1.Cost reduction.

With a TMS, companies can plan all the routes for the delivery or collection of goods, this planning allows them to know the resources they need, type of vehicles, total kilometers that they will travel, consider working time of drivers, number of orders for each route and of course the most optimal route for each driver

Increased efficiency and productivity

With a TMS, better results can be achieved in less time through a platform for executing, managing and analyzing the company’s logistics processes.

By eliminating manual work, the time spent organizing the supply chain can be significantly reduced and many errors can be eliminated. Supply chain managers can spend more time analyzing and making improvements, rather than performing administrative tasks.

Increased supply chain visibility

A TMS solution provides the data needed to control and improve transportation processes, especially when cargo is in transit, which provides greater transparency.

Thanks to the visibility provided by a TMS, information flows through the supply chain, enabling analysis of data such as pick-up and delivery times, costs, time in transit, fuel efficiency, transport capacity, loading time, and more.

Improved customer service

Due to improved forecasting capabilities and real-time information on shipments, as well as the appropriate use of data to provide personalized services, the company improves both customer service and customer satisfaction levels.

 In the long term, this can indirectly lead to an improvement in the Net Promoter Score (i.e., the measurement of customer loyalty based on the recommendations they make), which can generate new business opportunities and partnerships.

Warehouse efficiency and inventory management

With a TMS, you can automate some of the warehouse tasks and eliminate errors to reduce the time spent on these tasks. It also provides greater visibility of stored products.

Improved transportation execution and on-time deliveries are two benefits offered by TMS, which impact inventory flows and replenishment strategy. Complete visibility over the delivery of goods enables forecasting and planning, which reduces stock levels and avoids delays, thus saving costs.

About Drivin

Drivin is a TMS SaaS, one of the most complete solutions on the market and adjusts to the logistics needs of companies through a modular platform, very easy to implement and use.

We have strong consulting, support and development teams that accompany the customer in their initiatives to drive new business or continuous improvement, creating an experience that adds value to their supply chains.

By choosing Drivin, companies take their logistics to another level, achieve real efficiencies and can offer greater added value to their customers.