Want to Reduce Freight Costs? Use a TMS… & Here’s Why

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Implementation of a TMS is the most effective and productive way to reduce freight spend across the board. Shippers are under increasing pressure to release the burden on carriers and avoid all errors. In addition, customer expectations are growing faster than ever before, thanks to the surge in e-commerce. For shippers to remain competitive, they need to control overall freight costs, and the use of a TMS is the best way to achieve this feat. Consider these keys ways that using a TMS can reduce freight spend.

A TMS Can Reduce Freight Costs Through the Consolidation of Lower-Density Freight

There will always be times when freight will be sent via full truckload, and full truckloads make sense. Full truckload is more affordable than nearly every other mode available. Unfortunately, the value of full truckload only exists as much as the capability of shippers to take advantage of it, and e-commerce makes it almost impossible to take advantage of full truckload freight in today’s world. The average of order weights & volume via e-commerce are too small to use full truckload, so shippers need a way to build smaller shipments into larger loads via freight consolidation and deconsolidation, explains Frank McGuigan via Supply Chain Brain. Furthermore, these processes may require multiple shippers working together to consolidate freight to the point where a carrier can effectively ship via Less Than Truckload or full truckload. To pull off collaborative consolidation may request that you work with your competitors in some cases, but using a TMS will allow you to process a shipment whether it is Full Truckload, LTL, parcel, or final mile needing white glove services, primarily when the shippers use a TMS like the Cerasis Rater, offered by Cerasis.

 

Shipper of Choice & TMS: How a TMS Makes Shippers’ Freight More Attractive

Using A TMS Also Streamlines Employee Activities

Every employee represents a cost to your company. Inefficient workers amount to lost opportunities and increased risk of error. When workers are overworked, they are more likely to make an error, and this is true regardless of where they work. Back-office workers may make an error in the paperwork, and dock staff may improperly load freight. Any slip-up in the entire operation could undermine the efficiency of your process, not to mention result in added charges by carriers and delays in customer service and delivery. However, the implementation of a TMS effectively ensures all processes are handled in the most efficient way possible, including working with the preferred carrier, ensuring each shipment is scheduled at the lowest possible cost, avoiding potential bottlenecks with other freight schedules and more.

Process Automation Forms Another Aspect of How a TMS Will Reduce Freight Costs

Process automation is perhaps the most significant innovation to ever arise in supply chain functions. Process automation refers to the automating of existing actions through advanced algorithms in the application of data to make informed decisions. Artificial intelligence and machine learning are both forms of process automation, and the use of other connected technologies, including handheld scanners and automated identification and data capture (AIDC) technologies, can further automate the entire process.

Get Your Freight Costs under Control by Implementing a TMS in Your Organization Today

The use of a TMS is the most affordable and effective way to control freight spend. It provides a one-stop solution to true supply chain visibility and helps shippers overcome obstacles as they arise. More importantly, a modern TMS can integrate with many existing systems, including your warehouse management system (WMS) and your legacy ERP platforms. At the same time, a TMS is incredibly advanced through additional connected technologies, empowering shippers. Get a Demo of the Cerasis Rater TMS to start reducing freight costs today.

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