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With supply chains grappling to keep up with the Amazon Effect, the choice
of an effective Transportation Management System (TMS) has
become crucial.
There are many types of TMS solutions, that vary from more traditional on-
premise TMS solutions, to network TMS solutions. The right TMS can
optimize your core operations and transform the way your business
functions.
Here’s how:
This integration will enable the company to execute orders through the
most cost-effective carrier. It confers the advantages of better route
planning and load optimization to the company. Simply put, planning and
execution of orders will be better and quicker.
3. Minimal Paperwork
Automation of all accounts using a TMS will save precious time and money
spent on bulky paperwork. Administration expenses are reduced to a great
extent. Blunders such as incorrect billing or invoice errors are minimized
and overall efficiency shoots up.
4. Inventory Management
Order cycles have shortened and shipment sizes have shrunk. As a result,
routing is more critical than ever. The right TMS equips users to implement
pool distribution, which is a cheaper and faster method of delivery offering
greater visibility and control. The user chooses the optimum pool point to
determine which shipments should be picked up or delivered. Complex
orders are broken down and routed separately, saving both time and
money.
The right TMS saves your time and money. It enhances your company’s
overall productivity and efficiency. But most importantly, each of the
aforementioned aspects contributes towards your ultimate aim as a
business: getting repeat business. You want your customers to choose
your services repeatedly, and the right Transport Management System will
ensure that they do so. Improved customer experience through TMS will
also increase the likelihood of referrals.
Bottom Line
A study carried out by ARC Advisory Group has found that the demand
for TMS applications has been growing steadily over the years. The
growth is likely to continue until 2018 and well into the mid-2020s when
the market is expected to reach saturation. While tier 1 companies are
expected to continue to drive the growth, small to mid level companies
can be expected to grab a bigger share of the market in the future owing
to their sheer number.
Here is a look at what the future holds for TMS in 2019 and
beyond
Cloud-based Transport Management Systems: The main
reason small and mid-level shippers have been slow to embrace
TMS is the high cost of implementation and maintenances, as
mentioned above. Also, by its very nature, a cloud-based system
can be accessed from anywhere, which makes it easier for
shippers to get real-time information to make on-the-spot
decisions.
Becoming one with the other office systems: Just like word
processor, spreadsheet and presentation started out as separate
applications and merged to become one single office system,
today’s TMS applications are evolving to become one with the
office system. When that becomes a reality, users will no longer
have to worry about costly integration. Also, the next generation
transport management systems will be built on the Enterprise
Service-Oriented Architecture (Enterprise SOA) technologies,
which will allow resources to be shared (and split, when needed)
more efficiently.
In view of all the developments that are going on, the future of TMS
looks very promising. In fact, many experts firmly believe that the future
of shipping and 3PL lies in TMS. As such, shippers and 3PL companies
that adopt TMS early will get a clear advantage over those that don’t.
Therefore, they should adopt TMS as soon as they can.
METHODOLOGY
TMS has gained traction over the past decade, as it has emerged as an
enabler of seamless global trade and logistics management. By enabling
information exchange across functional silos; amid geographically
disparate operations; and in various languages, currencies, and business
units, it has developed into an enterprise software that is finding growing
appeal. Furthermore, its functionalities make it suitable for organizations
that not only have complex logistics operations, but also those that may
have basic transportation needs.
Hardware Requirements:
RAM 2 GB
Software Requirements:
Payment Collection Allotment : In this Module User Can Allot The G.R.
For Payment Collection From The Party To Which Consignment Has Been
Delivered.
Payment : In This Module User Can Manage His Payment Details Like
Payment Received From Party And Release To Agency.
G.R. Status : IN this Report User Can Check G.R. Status i.e. Product
Was Delivered Or Not.
Unloading Report : In This Report User Can Generate Unloading
Report Like Date Wise / Vehicle Wise.
Delivery Report : In This Report User Can Generate Delivery
Report i.e. Date Wise, Paid/Unpaid Wise.
Transport management systems, also known as TMS, have come a long way since the
1980s when rudimentary applications with basic features were introduced. Until
recently, the main aim of TMS was to help shippers increase efficiency and cut
transportation costs by allowing them to choose modes and manage transportation
orders. While this is still true today, the latest TMS applications aim to offer
comprehensive solutions to deal with the complexities of global shipping business as
well as third party logistics.
Still, the use of transport management systems is largely confined to big shipping and
3PL companies due to high implementation and maintenance costs, which have
deterred most small to mid level shippers. According to a report published by Inbound
Logistics, only about 35% of shippers are currently using TMS and most of them are
large companies. This means that most small companies are missing out on the
benefits of TMS applications.
But the picture is changing rapidly. Developers are increasingly targeting small to mid
level shippers who form the bulk of the shippers worldwide. TMS applications are not
only becoming more affordable; they are also incorporating features to provide
comprehensive shipping solutions rather than just the management of transportation. As
a result, a growing number of shipping companies of all sizes as well as 3PL companies
are embracing them in unprecedented numbers.