There are many benefits of Transportation Management systems that manufacturers, distribution companies, and anyone who ships freight realize. They go often way beyond just the cost of shipping freight. If you can look at your freight and transportation departments as more than just a cost, then you are thinking in the right direction on how to holistically help your business Maximize the return on the investment.
Transportation Management reduces transportation cost and increases delivery reliability through collaboration across all modes and providers.
With the complex economic and global trade environment pushing rates higher and capacity tighter, shippers and their supply chain teams are under pressure to choose the right suppliers and transportation partners while squeezing as much value as possible out of their transportation network.
A transportation management system helps companies move freight from origin to destination efficiently, reliably, and cost effectively. A TMS encompasses solutions for moving freight in all modes and also includes intermodal movements. The TMS processes include freight transported inbound or outbound, domestically or internationally; using transportation assets owned either by the company or an outside service provider. The freight managed by a TMS ranges in size from parcels to bulk commodities.
Components of Transportation Management
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Sourcing
Manage the entire lifecycle of transportation sourcing. Optimize bid events, standardize contract management, and drive contract compliance with a secure, single view to the contracted rates and carrier allocations plans.
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Rating
Centralize and standardize transportation rates across modes and geographies. Optimize carrier, mode, route and rate selection based on preconfigured business rules, available services, and carrier capacity commitments.
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Planning
Consolidate, plan, optimize, and schedule across all modes and geographies.
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Tendering
A universal communication platform joining shippers with a networked multi-modal carrier community.
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Freight payment & audit
Receive freight bills electronically, standardize the data and format, and audit against the contracted rate and shipment activity. Resolve discrepancies through a collaborative dispute workflow with transportation providers. Payment vouchers are triggered following bill approval.
Third Party Logistics Providers are the key to your transportation management requirements.
If you are looking to reduce your ocean freight cost, Air Freight or any other form of transportation mode, you need to seriously consider Transportation Management.
