Supply chain management is a complex, ever-changing process. The actions of yesterday do not necessarily reflect the best practices of tomorrow. Amazon and Walmart continue to encroach on small businesses, and the ability to gain insight into freight spend has never been more critical. With all the hype about savings and improvements through a transportation management system, let’s go back a step to really answer the overlooked question, “what is a transportation management system?”
A transportation management system is a type of supply chain management program that gives shippers the ability to see logistics costs and planning processes, explains TechTarget. However, systems vary in scalability and function. The core function remains logistics management, including managing freight and carriers, but modern systems are capable of much more than just management. They deploy technology to enable traceability.
A modern platform leverages cloud-based capability to offer access from anywhere with internet connectivity. They serve as an extension/ module within a company’s enterprise resource planning (ERP) software to keep freight costs under control.
Although a TMS is primarily designed with shipper goals in mind, it has additional implications for carriers and logistics service providers. Even 3PLs, including Cerasis, have worked to develop a TMS that benefits everyone in the supply chain.
The ability to track more information surrounding transportation management offers additional benefits to shippers through new capabilities, powered by data. Key benefits include:
Optimum logistics management begins with the deployment of an advanced platform that will finally give shippers, carriers, and logistics providers the information necessary to keep costs under control and boost customer service levels. It all boils down to the need to use an advanced, well-developed, and intuitive transportation management system. Stop asking, “what is a transportation management system,” and do something about improving your freight management practices. If you are not using a TMS today, you are losing money somewhere. Ask for a demo today of the Cerasis TMS, the Cerasis Rater.
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