In 2008 only 20-30% of businesses were utilizing a transportation management system. Since then, TMS adoption rates have remained in double digits. These systems are most often used in conjunction with an ERP and/or warehouse management system. While the capabilities of TMS software varies by vendor, some of the top features and functionality found in most systems include dispatching, trucking/asset management, integrated accounting, freight brokerage and route management. When evaluating transportation management software industry decision makers often consider its’ ability to effectively and efficiently manage key business functions such as LTL and intermodal shipping; inbound and outbound operations; domestic and international transport; and internal and 3rd party trucking resources. These key operational functions, when automated using TMS can provide significant benefits to any supply chain or logistics operation. One of the most often realized benefits is the significant improvement in customer service levels. The performance data gathered allows supply china operators to make adjustments to both ineffective internal processes and problem transportation partners. Data accuracy will also see significant improvement. When integrated into ERP or WMS systems data entry errors can be completely eliminated. Distribution methods can also be easily adjusted and optimized to meet changing customer needs. The use of TMS simplifies the management of these distribution methods. TMS implementation also assists in reducing costs associated with storing excess inventory. Transportation management software use helps businesses to utilize JIT fulfillment strategies, carrying only as much inventory as is immediately needed. The savings realized here can then be passed on to customers, differentiating your business. These savings can also be used for re-investment in your operation. More closely monitoring transportation operations using TMS also helps to reduce expedite costs. This is most often done through exceptions management functionality that helps your team to be proactive rather than reactive. These fees can quickly add up and take away significant capital needed for other business areas. Lastly, implementing a TMS improves load consolidation capabilities. With a far superior view of outbound shipments your team can more effectively stage and load trailers with little to no wasted space. Learn more about evaluating, selecting and improving your operation with transportation software by contacting Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.

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