Selecting the correct software system for the business helps to maintain process efficiency, gain visibility into the supply chain, and control general transport costs. The Transportation Management System or TMS is one of them. It is a subset of supply chain management related to transportation operations. TMS has become an essential piece of equipment in a growingly competitive and complex transportation landscape. Whether employed by the manufacturer or a third-party logistics provider like DHL or Kuehne + Nagel, it can decrease transportation costs, enhance performance, and upsurge customer satisfaction. The following article examines the top 4 features to look for when selecting a transportation management system.
Powerful optimization engine
Presently, there are several kinds of TMS systems on the market. Still, only some are equipped with optimization engines designed to develop the most efficient route plans that fulfill various limitations in delivery, as well as route plans that minimize costs and maximize vehicle capacity. When selecting a TMS, it must have at least one of the following powerful optimization engines:
- Load Optimization:Arrange packages on the vehicle, considering rules.
- Route Optimization: Plan Shipments in the best manner on available Vehicles using available routes.
- Strategic Freight Management:Arrange bids by carriers for long-standing contracts based on factors like Risk, Capacity, and Cost.
- Selection of Carrier:Arrange carriers for each shipment, keeping in mind allocations, business shares, and costs.
It should offer track-and-trace capabilities for products as they move along the network and provide a comprehensive view of each stage of the transportation process, making them simpler to manage. When choosing a TMS, it should be ensured that it offers an enhanced accuracy rate of monitoring and tracking and efficient management along with automated notifications for events on the road.
Contract management of the carriers
The root of the TMS is the contract. Consequently, the desired TMS should have the ability to enable the organization to efficiently leverage the preferential terms and negotiated conditions established for the business by consolidating the contracts in an e-database that has the competency to offer access and decision support tools for the transportation management team.
Such a transportation management system has been developed by Abivin and another Canadian multinational technology company that can handle multimodal contracts with substantial flexibility, offer role-based access, and is easy to set up. It supports thousands of agreements in real time. Customizable geography descriptions for effective dates, transit times, zones, lanes, and notice of expiring agreements can be integrated into the portfolio of carriers.
Power to integrate with ERL, WMS, and other leading systems
Information silos are the killers of the connected supply chain. By including TMS information with other inner data sources, such as ERP and WMS or OMS, businesses can achieve approximately real-time visibility into products from purchase through inventory and transportation. This integrated outlook of the products through the whole supply chain can be seen through a single portal that gets data from several sources, combines it, and offers it in a searchable and user-friendly control center that acts as a single reference point for tracking visibility through the supply chain.
Through ERP or any other system – TMS integration, manufacturers and distributors intend to strengthen end-to-end visibility across shipping and warehouse functions such as order processing, record access, and general ledger information, offering a more all-inclusive view of processes that should result in planning and coordination.