A transportation management system (TMS) is vital to any logistics department; it acts as the brains of the operations and keeps processes running smoothly. There comes a day in every organization’s life when they start to fall behind the curve, or the organization itself outgrows the capabilities of the current system.
From that dark day, the hunt for modern TMS software begins. And then come the obstacles of implementing a new TMS in a way that doesn’t make life harder or worse for everyone in the organization. A seamless TMS integration can happen, but it’s all in the prep work.
What goes into a TMS?
There are several different components that make up a good transportation management system and aid in the overall planning and optimization of freight. These components work together to streamline an organization’s logistics operations and enhance supply chain efficiency. Here are three of the most important ones.
- Carrier RFP management
- Multi-modal rating and booking
- Real-time shipment visibility
Carrier RFP Management
Logistics professionals are all too familiar with the challenges that come with creating a carrier request for proposal (RFP), sourcing the best carriers, and managing bids from multiple providers. Companies seeking to optimize their routing guide often turn to RFP processes baked into modern TMS solutions to quickly find the best providers.
RFP workflows within a TMS simplify the complex request-for-proposal process by providing a detailed, step-by-step framework. This helps shippers efficiently create, manage, and evaluate RFPs for transportation services to make sure they’re tapping the best partners and getting the best pricing.
Multi-modal rating and booking
Most shippers these days rely on multiple types of modes to ship their freight. If you’re a shipper who hasn’t diversified into multi-modal shipping, you’re probably leaving money and service improvements for your customers on the table. Rating and booking multiple mode types can take a lot of time, however. Some shippers simply don’t look into all their options because their logistics teams don’t have enough bandwidth.
Modern TMS platforms solve this by offering multimodal rating and booking all within a single platform. You can rate and book for FTL, LTL, drayage, and intermodal to name a few. A good TMS can centralize the rating and booking process across multiple carriers and modes to eliminate the tedious task of managing various carrier portals and phone calls.
Real-time shipment visibility
Real-time shipment visibility has become table stakes for shippers, freight brokers, 3PLs, and carriers. To not have it is not an option. Essentially, this provides companies with up-to-the-minute information on shipment locations and statuses throughout the transportation process.
Through the use of GPS tracking, IoT sensors, and integration with carrier systems, a TMS can offer detailed insights into shipment progress, estimated arrival times, and potential delays. These features help companies quickly respond to disruptions, manage exceptions, and meet compliance requirements.
Advanced technologies to consider in your TMS decision
Don’t make the mistake of selecting a TMS based only on current requirements. To avoid needing a new solution after just a few years, consider only the most modern options that can scale with your business. One such example is the next-gen ShipperGuide TMS. Make sure to choose a TMS that leverages (or can integrate with tools that leverage) transformational technologies to remain competitive over a longer period of time.
Machine learning and AI
Machine learning and artificial intelligence (AI) are revolutionizing the TMS space. Although machine learning has been around for a while, it’s now combined with AI to make an even bigger impact. Using AI, the best TMS solutions can analyze vast amounts of historical and real-time data for more accurate predictions and decision-making.
Internet of Things
The Internet of Things (IoT) is a game-changer in modern freight management, especially in the temperature-controlled space. IoT devices may include anything from GPS trackers to sensors and telematics units. They can be attached to vehicles, containers, and cargo to provide real-time data on:
- Locations
- Temperatures
- Humidity levels
- Fuel consumption
- Vehicle diagnostic faults
As demand grows, it’s crucial that your TMS software is capable of handling and integrating with a variety of IoT-enabled devices. They offer enhanced visibility into fleet operations for improved tracking accuracy, proactive maintenance scheduling, and better safety monitoring. This, in turn, helps reduce vehicle downtime and unforeseen delays.
6 steps for a seamless TMS implementation
1. Evaluate existing tech stack
When preparing for a TMS integration, such as Loadsmart’s ShipperGuide TMS, it’s crucial to assess and enhance your organization’s technological capabilities. This involves evaluating your current IT infrastructure, including hardware, software, and network capabilities, ensuring they can support the new TMS. Take the following into account to determine whether your infrastructure can handle increased data flow and real-time operations.
- Data storage capacity
- Processing power
- Network bandwidth
Be sure to also examine hardware system compatibility and API readiness. They cannot be overlooked as they’re crucial to seamless integrations with existing systems like ERP, WMS, or CRM.
If the TMS software is cloud-based, consider cloud capabilities and ensure your infrastructure can support cloud connectivity. Assess your team’s technical skills and plan for any necessary training or hiring to manage and maintain the new system effectively.
2. Set timelines and roadmaps
Half the battle when it comes to a successful integration is planning. A well-thought-out and achievable timeline can make or break an integration. Start with a detailed project plan that outlines key milestones, dependencies, and deadlines. Typical phases include:
- Initial assessment
- System selection
- Configuration
- Testing
- Training
- Go-live
Allow sufficient time for each stage, particularly for data cleansing and migration. The roadmap should also account for potential disruptions to daily operations and include contingency plans. Regular review and adjustment of the timeline throughout the project can help maintain flexibility. Make sure that the system you select is known in the industry for their excellent implementations and prompt customer support when you have a question.
3. Train and get buy-in from users
A comprehensive training program should be developed to familiarize staff with the new system’s features, functionalities, and benefits. This training program should be tailored to different user groups, from executives to daily operators. Everyone should understand how the TMS will impact their specific roles. Consider a mix of training methods, including hands-on sessions, online modules, and documentation, to cater to different learning styles.
To gain buy-in, you should clearly communicate the system’s benefits, addressing how it improves efficiency, reduces workload, and enhances decision-making. Involve key users early in the process, possibly as part of a pilot group, to create champions within the organization.
Make sure to choose a TMS that is intuitive and has a consumer-grade user interface. This will help get users up and running quickly because they can figure it out themselves. This will also speed up the training time for greener employees who are new to the transportation industry.
4. Develop a system integration strategy
A TMS software integration strategy is critical when implementing a new system. This outlines how the TMS will connect and communicate with other existing systems within the organization. These may include enterprise resource planning software, warehouse management systems, customer relationship management platforms, and financial systems.
The goal is to ensure seamless data flow and process coordination across the entire supply chain ecosystem. This is why it’s vital to identify all systems that need to interface with the TMS. Make sure to determine the type and frequency of their data exchange before you begin.
5. Check and recheck your work
Testing and quality assurance are arguably the most important parts of an implementation. Enlist testers from every system user group and ask them to intentionally look for possible errors. This will ensure complete functionality when the new TMS is put into a live environment.
Throughout the process, it’s essential to document test cases, track issues, and maintain a rigorous quality assurance protocol. Automated testing tools can increase efficiency and coverage. QA testing helps identify and resolve potential issues before go-live while also strengthening stakeholders’ confidence in the new system.
6. Create and execute a change management strategy
One of the most commonly forgotten components of implementing a new TMS is change management. Change management involves a structured approach to transitioning individuals, teams, and the organization from the current state to the desired future state. This includes clear communication of the reasons for change, benefits of the new system, and how it will impact daily operations.
Working with people on what to expect and how to accommodate the change is just as important as the technology side of an integration. Unless users are ready and willing to make the necessary changes, an implementation may fail no matter how smoothly the technical aspects go.
Seamlessly transform your operations with modern TMS software
A state-of-the art TMS like Loadsmart’s ShipperGuide is a strategic investment with the potential to completely change the way you operate. By following our tips and committing to continuous improvement, you can achieve seamless operations, enhanced efficiency, and greater competitive advantage.
Just keep in mind that a successful TMS implementation isn’t simply about the technology you choose. It’s also about aligning people, processes, and systems in a way that drives lasting value for your business.
FAQ
Each system has its own set of features, advantages, and fees. The average cost can be anywhere from $10,000 to $500,000 or more. It all depends on the option you choose.
Implementation depends heavily on the technological infrastructure in place and how many other systems there are to integrate with. Typically, it can take one to two months for small or mid-sized organizations and three to six months for large enterprises.
There are few disadvantages to using a transportation management system. However, if it’s not implemented or integrated correctly, there could be issues affecting all levels of the business. These may include an inability to tender loans or difficulty paying carriers.