Transportation is a crucial aspect of the global supply chain. Whether it be by land, sea, or air, ensuring that products travel to their destinations safely and efficiently is no small task. As we look ahead to what 2023 will bring, some of the challenges from the pandemic will unfortunately remain. With higher costs impacting all aspects of business and the supply chain, logistics coordinators must find ways to meet demand more efficiently and at a lower cost. To do so, many are updating their transportation management procedures to boost effectiveness and save money.
The Benefits of Transportation Management Systems
The industry has seen an uptick in the implementation of transportation management systems to help enterprises oversee all aspects of transportation in their supply chain. This is generally a software system that includes key features to assist companies with transportation logistics:
- Transportation planning
- Order management
- Shipment rate management
- Load planning
- Fleet management
- Route analysis
By investing in a comprehensive transportation management system that includes these features, companies may realize important benefits:
- Improved cash flow and cost savings: A transportation management system software solution can compare carrier rates to find the most cost-effective options and can provide coordinators with enhanced insight into operations, allowing them to cut unnecessary costs. Additionally, the ability to plan loads accurately and efficiently lowers the risk of damaged goods.
- Enhanced real-time visibility: Supply chain visibility is more important than ever. Transportation management systems enable companies to track and trace the movement of products as they travel through the supply chain. This enables managers to monitor for inefficiencies in their operations and adjust as needed. The integration of smart technology, such as RFID, can complement this process.
- Increased warehouse efficiency: A transportation management system can work in tandem with a company’s warehouse management system to improve fulfillment processes and boost efficiency.
- Increased customer satisfaction: The days of products taking “four to six weeks” to ship are behind us; thanks in particular to innovations introduced by Amazon, customers expect rapid on-time deliveries. The use of a transportation management system can improve visibility on the customer end by providing them with more accurate updates on where their package is and when it will arrive. According to research from Verte, 91 percent of consumers actively track their packages, making accurate delivery information critical to customer satisfaction.
As supply chains continue to navigate challenges, logistics managers should take advantage of all the technologies available to help them meet demand and boost efficiency. And, as transportation operations continue to evolve, investing in a reliable transportation management system can help companies remain competitive and safeguard against future disruptions.
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