Using a TMS Automates Selection of Less Than Truckload Freight Carriers
Instead of relying on outdated, standard freight quoting processes, modern shippers can maximize operational efficiency with an advanced transportation management system (TMS). A modern TMS leverages electronic data interchange (EDI) and application programming interfaces (APIs) to automatically connect a TMS user with carrier freight scheduling and quoting systems. In today’s world, most carriers use digital resources. These resources are readily available and on-demand, but depending on the type of TMS in use, freight rates for such systems may vary. Remember, freight shipping is an industry reliance on strategic value partnerships. In other words, shippers that move more freight unlock additional discounts, comparable to discount associated with gaining “Shipper of Choice” status. As a result, more shippers have turned to third-party logistics providers (3PL) platform vendors for their TMS needs. For example, the Cerasis Rater gives Cerasis-partnering shippers the bargaining power of the entire Cerasis network of shippers. Furthermore, using an LTL specific TMS can automate the less than truckload freight carrier selection process, turning a traditionally burdensome activity into a turnkey process. According to Penske Logistics, using LTL offers critical benefits, including less risk, better rates, and even faster shipping without harming the environment unnecessarily.
Tips for Choosing a Carrier Within the TMS
Automation is the best path forward in modern supply chain management, but it can have adverse effects. Using automated carrier selection rulesets are only as valuable as the most recent, specified criteria. Thus, the best carrier of today may not necessarily be the best carrier for tomorrow. While a TMS can mitigate this risk, some shippers will wish to retain control of the selection, even when those selections are not necessarily the fastest option. For instance, shippers conscious of environmental costs may opt for a slower delivery, which will incur a lower fee. The same applies to consumer-facing shipping selections. To eliminate customer-preference from the equation and for this discussion, shippers should follow these tips when considering a less than truckload freight carrier for inbound and outbound, business-to-business relationships.
- Consider the carrier’s published rates, including practices for DIM pricing versus freight classification.
- Review the carrier’s rates in comparison to competitors.
- Examine failures or reports regarding carrier performance.
- Analyze available cargo insurance offers.
- Remember to review guarantees for delivery, including remuneration.
- Think about potential accessorials and surcharges.
- Give customers the power of choice through integrated systems.