In logistics, efficiency is everything — and top transportation management system (TMS) solutions are at the forefront of making freight management activities more efficient by automating key processes.
Keep reading to learn how these advanced systems are helping shippers streamline operations, cut costs, and boost overall supply chain industry performance.
First things first: What’s a TMS?
Think of a TMS as your logistics command center. It’s smart software that helps you plan, execute, and keep tabs on how your goods move from point A to point B (and sometimes C, D, and E). Modern TMS solutions are cloud-based, allowing for real-time data access and collaboration across teams.
TMS-enabled automation can be considered the ‘secret weapon’ of advanced shipping operations. When the technology first started catching on, users were glad that they no longer had to manually compare carrier rates and juggle spreadsheets. And that was a huge step forward, but why stop there? The best transportation management software providers have continued to evolve, and so too should your expectations.
7 ways a shipper TMS automates freight management
Automation is the name of the game now, and it’s transforming how companies handle freight faster than you can say ‘supply chain optimization.’ Let’s explore ways that top TMS solutions leverage automation to revolutionize how shippers manage their freight operations.
1. Carrier selection
Some shippers describe the carrier selection process as almost as much an art as it is a science. Advanced TMS solutions, though, remove any ‘eeny, meeny, miny, moe’ element from the decision, automatically handling the legwork for you. They crunch numbers faster than any Excel expert, analyzing historical data, current market rates, and carrier performance to pick the best option for each shipment, every time.
And as an added bonus, the best systems don’t just examine the basics. They also factor in data like transit times, reliability scores, and even any unique preferences your company may have. Older legacy TMS platforms are seldom equipped to handle this level of decision-logic customization.
2. (Real) real-time tracking
In the not-too-distant past, tracking a shipment was almost like trying to find a needle in a haystack. Automated shipper TMS technologies have since changed the game, integrating with carrier systems and IoT devices to offer play-by-play shipment location updates whenever you want.
But it’s not just about knowing where things are. These systems are smart enough to flag potential issues before they become full-blown crises. At the mere whiff of delivery delay or disruption, an advanced TMS will send an automated heads-up so you can execute your plan B.
3. Load planning and consolidation
If you’ve ever played the game Tetris, you may recall the satisfaction that comes with clearing a line from the screen. Efficient load planning in logistics is kind of like that, but with real money on the line. The best TMS platforms are smart enough to spot opportunities to consolidate freight or help you choose better modes. That means fewer half-empty trucks on the road, which is a win-win situation from both a profitability and sustainability perspective.
4. Predictive analytics and forecasting
Wouldn’t it be nice to see into the future of your supply chain? While TMS solutions can’t quite manage that, they do come pretty close with predictive analytics. Using AI and machine learning technologies, transportation software can forecast future shipping needs and potential hiccups. With this kind of foresight, you can make proactive decisions that keep your business running smoothly.
5. Invoice auditing and payment processing
Mind-numbing invoice auditing and payment processing tasks are a breeze with today’s leading TMS products and services. By comparing invoices against contracted rates and services to identify financial discrepancies, they help prevent overcharges from landing on your books.
6. Freight management performance reporting
Spreadsheet fatigue is real, and a cutting-edge TMS can help you avoid it by generating automated reports on the key performance indicators of your choosing. On-time delivery rates, cost per mile, carrier performance scores, and more are made accessible with the touch of a button. Comprehensive reporting capabilities enable you to spot trends, identify areas for improvement, and make data-backed decisions that improve your shipping operations.
7. Bid management
For companies that regularly put out bids for freight services, TMS-enabled automation is a game-changer. Use it to handle the entire bid management process, from generating and distributing RFPs, to analyzing responses and even making award recommendations. Think of it as a virtual procurement team working around the clock to ensure you always get the most bang for your buck. You can even execute mini-bids for short-term contracted rates on special projects or new lanes.
The payoff: Why a modern TMS is worth the investment
So what does all of this automation really mean for your company’s bottom line? The benefits of implementing an advanced TMS are substantial.
- Increased efficiency: Minimizing the time your team spends on manual tasks frees up your resources for more strategic activities.
- Money in the bank: Optimization, smart carrier selection, and improved load planning add up to serious savings.
- Improved accuracy: Automated processes mean fewer human mistakes and less wasted time..
- End-to-end visibility: Real-time tracking and reporting give you clarity and control like never before.
- More informed decision-making: Data-driven insights help you make smarter moves, faster.
- Satisfied customers: Proactive issue management and accurate tracking lead to happier customers and better service levels.
- Scalability: Automated processes scale up smoothly, minimizing new headcount and technology needs.
Embrace freight management automation
From picking carriers to crunching numbers, TMS automation can help turn your shipping operations into a well-oiled machine.
Top TMS solutions with robust automation capabilities, like Loadsmart’s ShipperGuide TMS, offer unprecedented efficiency, visibility, and cost savings. And as technology continues to advance, we can expect even more innovative features to emerge, further streamlining freight management processes.
For shippers looking to stay competitive in today’s fast-paced market, embracing these automated TMS solutions isn’t just an option — it’s a necessity for future success.
FAQ
An example of freight management is coordinating a shipment from a manufacturer to a distribution center. This might involve negotiating contracted rates with carriers for this lane, selecting and tendering to the most cost-effective carrier on the best mode, and ensuring timely delivery.
A freight manager oversees the entire process of moving goods from origin to destination, including planning routes, negotiating with carriers, and tracking shipments. They are responsible for optimizing transportation costs, ensuring regulatory compliance, managing inventory levels, and resolving any issues that arise during transit.
Logistics is a broader term that encompasses the entire supply chain process, including capacity procurement, warehousing, distribution, and customer service. Freight management, on the other hand, specifically focuses on the transportation aspect of moving goods from one point to another, including carrier selection, route optimization, and shipment tracking.