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Is Your Transportation Management System Working for Your Business?

Is Your Transportation Management System Working for Your Business?

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Is Your Transportation Management System Working for Your Business?

Sep 8, 2021

Steve Bayley

Transportation management systems (TMS) have improved efficiencies and optimized operational performance within the supply chain since the 1980s. Yet, the increasing fragmentation of the supply chain means that it’s now more important than ever to have a TMS that puts you ahead of the game.

The question is: does your TMS still work for your business needs? And just as importantly, is it flexible and robust enough to deal with future changes in your industry?

To determine if your TMS is the right fit for your transportation operation, it’s essential first to identify and understand some of the complex challenges and issues that impact the logistics industry. You can then make a clear judgment on whether the time to move to a more advanced routing and scheduling software is now. Here are a few key benefits of advanced route optimization software:

Vehicle Fleet Utilization and Optimization

Research by Heriot-Watt University shows that fleet utilization can be as low as 50%. It’s not surprising then that in a survey by Supply Chain Management Review and Logistics Management, 55% of supply chain, logistics and distribution managers said their transportation planning operation could be improved significantly.

More advanced TMS solutions enable you to plan regular routes, schedule delivery slots better and adapt routes in real time to meet ever-changing delivery requirements and external factors such as traffic conditions.

If your supply chain is fragmented or has a sizable commercial vehicle fleet, innovative transportation software is essential. Benefits of improved planning, route and schedule adherence, and controlled delivery time slots could reduce fuel costs by 12-15% .

Increased Customer Service and Visibility

We live in a customer-centric world, and to compete you must provide deliveries at times that best suit the customer and offer transparency in the delivery process. Get this wrong, and late delivery penalties can be incurred, along with serious reputational damage.

Can your TMS plan delivery slots at a time to suit the customer and allow for changes while also maximizing fleet utilization? Can your customers track delivery status and discover whether items are out on the road or still in the depot? If not, you may be falling behind your competitors.

Easy Integration

If you are operating within a complex supply chain, integration between your TMS, warehouse operations and suppliers is crucial.

If you need to know exactly what has been delivered, when it has been delivered and the outcome, transportation software can be integrated with your in-cab telematics, electronic delivery systems and warehouse software. Accurate stock levels and locations can be quickly identified to give a single view of what needs to be ordered, reducing wastage.

Admin and Future Planning

Suppose you are running a relatively simple supply chain. In that case, it’s easy to invoice and keep track of which logistics suppliers are working for you, both in terms of meeting customer service levels and ensuring profitability.

Keeping track of profitability can be harder the more complex your operations. It can be time-consuming to track which customers are the most profitable and which suppliers operate more efficiently or meet service level agreements. However, implementing a more innovative, advanced TMS can provide easy reports for key business decisions.

Is Now The Time To Change Your Transportation Management System?

Are you one of the many supply chain, logistics or distribution managers considering acquiring or updating your TMS? Get in touch and discover how Aptean Routing & Scheduling Calidus Edition could be just the right solution your business needs—now and in the future.

Tell us about yourself and an Aptean specialist will be in touch.