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Use Of TMS In Logistics: What To Think?

Logistics

A transport TMS is a solution intended to improve transport management. Adapted to changes in logistics practices, it allows companies to benefit from numerous advantages. Here’s everything you require to understand and make the best choice when it comes to MSD.

Logistics has undergone significant upheavals in recent years with the appearance of new constraints: the reduction of delivery times, the increase in international competition, the rise in fuel prices, the speed of the circulation of information, and changes in regulations are forcing companies to review their operations. The constraints weighing on logistics are no longer the same. Many carriers or large companies use TMS or Transport Management System software. It considerably facilitates the management of the transport function while providing innovative services to the company. A real saving in time, productivity and money, is a decisive competitive advantage for companies that decide to take the plunge. Diceus is the one of the best company that are providing logistics software development and software development cost estimation.

TMS Logistics: What Are The Preferred Management Solutions For Companies?

Many companies have not yet adopted a genuinely competitive solution. More than half of them (54%) still use an Excel spreadsheet to organize their transport. ERP, a resource planning and management tool, is only adopted by 39% of companies. Finally, TMS is only voted for by 36% of them.

Yet more than 4 in 5 companies have measured substantial savings through the use of TMS software. For half of the companies, TMS will have more impact on transport than the Internet of Things and autonomous vehicles. More than 50% of organizations are now convinced that TMS is the technology that will have the most impact on transport by 2022. So why do some companies prefer not to use TMS software?

Among the reasons justifying companies’ reluctance, its cost is too high, and the productivity gains hardly perceptible. However, many studies have shown that TMS software saves money.

The more the transport function is cumbersome to manage, the more the TMS is required as an alternative solution. However, many organizations point out the irrelevance of these tools if the volume of goods to be transported is too low.

What Are The Features And Benefits Of TMS Software?

While WMS makes it possible to improve warehouse management, the functionalities and advantages offered by TMS software for the Transport function are substantial:

  • The support for analysis and decision-making. It contributes to optimizing routes, loads, helps to define the optimal transport plan to meet deadlines and costs while limiting the number of empty trucks in circulation. It offers precise monitoring of the budget allocated to the vehicle fleet, insurance contracts, and transport documents.
  • The operational management of tours. The transport software centralizes each step of the logistics chain, from the entry of transport orders to final delivery to the customer. It ensures the dispatching of the products, gives a real-time view of the planned routes, the vehicles at your disposal, and the traceability of the products. It also manages the invoicing of freight and services. It is sometimes linked directly to the accounting system to integrate expenses automatically.
  • The reporting for continuous improvement of your logistics. The TMS allows you to extract all the essential KPIs to analyze the strengths and weaknesses of your transport function. You will also observe your ability to keep your costs, your delivery times, the filling rate of the trucks, and your CO2 emissions. These data also facilitate the definition of strategic policies in this area.
  • Some TMS solutions have been designed in SaaS ( Software as a service ) model. They are therefore accessible via a secure online platform. The fee is in the form of a monthly subscription. These tools allow more significant interaction with customers who can track their shipments, identify any anomalies, or print delivery slips, for example. This solution prevents the company from investing in actual software, which is especially suitable for SMEs.
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