Five Ways Your Business Can Benefit from a TMS System

What is a Transportation Management System?

A transportation management system (TMS) is a logistics platform that uses software as a service to help your business optimize the transportation of cargo domestically and globally. Also, a TMS system ensures your shipments are appropriately documented and compliant.

Reinforced by advanced technology, TMS can help you accurately deliver next-level performance in transporting your freight from the starting point to the destination. If you're trying to decide whether implementing a TMS system is viable for your business, the following five benefits of TMS should help you make a more informed decision.

1. Supply Chain Transparency

One of the most empowering advantages of a TMS system is the high level of visibility it provides across your entire supply chain. TMS gives you access to real-time data from all your integrated systems. This capability gives your company a tremendous operational edge by promoting customer satisfaction while maintaining efficiency and high performance.

2. Advanced Routing Capabilities

Today's consumer expectations and industry standards have made ultra-efficient routing essential. Since TMS scheduling and routing are faster and cheaper, it helps you effectively meet the demands of shorter order cycles and smaller shipments. For example, TMS schedule technology allows you to break down more complex orders and route them individually, saving you money and time. Also, it makes this possible by alleviating the need for manual data entry.

3. Lower Freight Expenses

A TMS system can save your company money on avoidable expenses, such as excess fuel consumption, supply chain disruptions, and out-of-the-way cargo pool locations. But most significantly, it reduces resource costs by automatically processing tasks usually done by accountants and shipping personnel. This function cuts expenses and increases net productivity at the same time.

4. Boost Customer Service

Innovative iPaaS Platforms like Lumino offer data analytics and intuitive functionality that improves customer service by harvesting data to track key performance indicators (KPI), such as on-time deliveries, ETAs, and damage rates. With this information readily available, you can better serve your customers by replacing low-performing logistics partners or in-house drivers with higher-performing choices.

5. Consistently Accurate Order Fulfilment

TMS systems can exponentially increase shipping accuracy. By providing real-time tracking and supply chain metrics, your TMS system can help your logistics department drastically cut down on shipping mistakes and irregularities. This benefit can save you money and elevate your brand image.

How a TMS System Could Fit Your Business Needs

Whether you're considering a TMS system for a small business or a TMS system for brokers, you can use the benefits we list and several more to fortify your competitive position in an increasingly evolving and expanding commerce arena. The five benefits that we highlighted are terrific. But you may be wondering whether a TMS solution fits the unique scheme of your business. If you contact the experts at Ariox, we will explain how the Lumino (iPaaS) platform can serve as a connection between your TMS system and other software or systems to optimize your business operations.