5 Scenarios That Prove You Need a Transportation Management System (TMS)

Inefficient route planning, costly transportation, missed deadlines, and bad reviews can hurt businesses. To stay competitive, companies must manage transportation well. But many don’t realize the benefits of Transportation Management Systems (TMS).
They don’t see why deliveries are late, costs are high, and revenue is down. It’s because their transportation systems are disorganized. This hurts profits and trust in the transportation industry, driving customers away. That’s where TMS comes in.
Here, we share 5 such scenarios that indicate the need for a TMS and explore how intelligent transportation management software can help in all cases.

TMS Software Necessity Checklist: 5 Instances Where You Can’t Do Without It

1. High Transportation Costs

High transportation costs are a big problem for businesses. There are many reasons why transportation costs can be high, like not planning routes well, using more fuel than needed, and paying more for labor. This makes it hard for companies to make money.
But there’s a solution: using a transportation management system (TMS for Freight Forwarders). With a TMS, companies can solve these problems. They can plan routes better, use less fuel, and save money on labor. This makes deliveries faster and cheaper, which helps companies make more money. Plus, a TMS helps with things like loading trucks efficiently and using resources well. This saves even more money and makes deliveries even faster. So, using a TMS helps companies make more profit and deliver things more efficiently.

2. Mismatched Fleet Requirements

Transportation problems often happen when companies can’t match the right number of drivers and vehicles to meet delivery demands. This can be due to changes in orders, busy seasons, or sudden drops in demand. Using manual methods to manage fleets and resources makes it hard for transportation managers to predict how many assets they need for deliveries to be on time and efficiently.
A solution to this is a Transportation Management System (TMS) for Freight Forwarders. It has smart algorithms that can plan deliveries intelligently. It also has a vendor portal where businesses can easily work with vendors, find the right vehicles in the market, and communicate easily.This automated system helps businesses manage their fleet needs better, negotiate better deals, save money, and get vehicles more efficiently.

3. Lack of Visibility Across the Supply Chain

Another very common issue is not being able to see all the parts of the supply chain, like vendors, trucks, deliveries, and orders. This makes it hard for businesses to know when things will arrive, where shipments are right now, manage money well, and keep track of everything. When lots of different carriers are involved, people often have to talk to each other using calls, texts, emails, and chats. This lack of seeing everything causes confusion, mistakes, and things taking longer.
But with a transportation management system (TMS) for Freight Forwarders, businesses can see where shipments are in real-time. They can track them, watch important moments, and make sure everything runs smoothly. This helps make customers happier, saves money, and makes operations better. It also makes it easier to do things like send bills, give fines, and tell people about shipment statuses. Overall, using a TMS for Freight Forwarders makes supply chains run better and helps businesses be more reliable.

4. Service Level Agreements (SLA) Breaches

When shipments don’t get picked up or dropped off on time, or when they’re delayed moving between hubs or reaching their destination, it breaks the promises made in the shipping process. Sometimes, businesses don’t even realize these delays are happening and end up paying extra fees like detention or demurrage.
These delays also mess up the estimated arrival times that businesses give to their customers, making the customers unhappy. When transportation is managed manually, these problems often aren’t noticed because there’s no direct feedback from customers. But if a business uses a transportation management system (TMS) for Freight Forwarders, they can track shipments in real-time. This means they can see where all their shipments are at once, without having to check with lots of different people.
Real-time tracking also helps fix problems like drivers not doing their job properly, and it makes the whole shipping process more transparent. Plus, customers can get updates on where their shipment is at any time, which makes them happier. TMS for Freight Forwarders also usually comes with a way for customers to give feedback. This lets businesses know what they’re doing well and where they need to improve.

5. Clunky Operations Management Owing to Manual Elements

Using paper and manual methods to handle data and documents, and communicating separately with carriers and vendors can cause mistakes, delays, and extra costs. When businesses can’t easily request and organize shipments and work together with different parties at the same time, or when they can’t see how well things are going, they might need something called a Transportation Management System (TMS) for Freight Forwarders.
This special software brings together different systems, like businesses, customers, transportation partners, and drivers. It helps them all talk to each other smoothly. This means everyone involved can quickly find out about money, shipping, and deliveries.
With this system, managers can keep track of requests for shipments, where shipments are, which carriers are being used, and when shipments are supposed to arrive. They can do all this in one place. This makes it easier for customers too, because they don’t have to keep calling to check on their deliveries.
Also, the system lets businesses measure how well things are going. They can set goals, see how close they are to reaching them, and figure out what they can do better. This helps them pick the best partners for shipping in the future and makes everything run smoother.
The software also makes it easier to handle things like proof of delivery (POD) and reports when deliveries don’t happen (NDR). This helps stop things like fake delivery attempts or wrong deliveries from happening.

What Makes FREIGHTOSCOPE â„¢ The Best Choice For TMS Needs

Freightoscopeâ„¢ offers a comprehensive solution to address the challenges outlined in the scenarios above, making it an indispensable tool for TMS for freight forwarders. By leveraging advanced algorithms, Freightoscopeâ„¢ optimizes route planning, reducing transportation costs and improving efficiency. Its intuitive vendor portal streamlines communication, ensuring the right fleet resources are allocated to meet delivery demands accurately. With real-time visibility across the entire supply chain, Freightoscopeâ„¢ enhances operational transparency, enabling businesses to adhere to service level agreements and prevent delays. Moreover, its digital platform eliminates clunky manual processes, facilitating seamless coordination among stakeholders and reducing errors. Overall, Freightoscopeâ„¢ empowers freight forwarders to enhance profitability, customer satisfaction, and operational excellence.

FAQ’s :

1. What are the main challenges faced by businesses in transportation management?

Businesses often struggle with high transportation costs, mismatched fleet requirements, lack of visibility across the supply chain, service level agreement breaches, and clunky operations management due to manual elements.

2. How can a Transportation Management System (TMS) help reduce transportation costs?

A TMS can help reduce transportation costs by optimizing route planning, minimizing fuel usage, and optimizing labor costs. Additionally, it can aid in the efficient loading of trucks and resource utilization, further saving money and time.

3. How does a TMS address the issue of mismatched fleet requirements?

By utilizing smart algorithms, a TMS can intelligently plan deliveries and allocate the right number of drivers and vehicles to meet delivery demands. It also provides a vendor portal for easy communication and sourcing of appropriate vehicles from the market.

4. How does a TMS improve visibility across the supply chain?

A TMS provides real-time tracking of shipments, allowing businesses to monitor their movement and ensure smooth operations. This transparency helps in managing finances effectively, keeping track of shipments, and providing updates to customers, ultimately enhancing reliability.

5. What role does a TMS play in preventing Service Level Agreement (SLA) breaches?

A TMS enables real-time tracking of shipments, ensuring that they are picked up, dropped off, and delivered on time. This helps in meeting the promises made in the shipping process and avoids extra fees associated with delays.

6. How does a TMS streamline operations management?

A TMS integrates different systems involved in transportation management, facilitating smooth communication and coordination among stakeholders. It centralizes processes such as shipment requests, tracking, and delivery management, reducing manual errors and delays.

7. What distinguishes Freightoscopeâ„¢ as a TMS solution?

Freightoscopeâ„¢ stands out as a comprehensive TMS solution that addresses various transportation challenges. It optimizes route planning, enhances operational transparency, and streamlines communication through its intuitive vendor portal and real-time tracking features.

8. How does Freightoscopeâ„¢ contribute to improving profitability for freight forwarders?

Freightoscopeâ„¢ helps freight forwarders reduce transportation costs, adhere to service level agreements, and prevent delays. By optimizing operations and reducing manual errors, it enhances efficiency and customer satisfaction, ultimately leading to improved profitability.