With technology driving so much of the logistics industry, your company always stands on the edge of obsolescence. Implementing a transportation management system (TMS) allows you to integrate your core processes, but these systems must adapt to changing industry demands. Here are some ways to future-proof your TMS logistics while improving operational efficiency.
Why should transportation businesses future-proof their TMS logistics?
Your TMS logistics demand constant updates to adapt to evolving conditions. For example, your TMS strategy requires you to keep up with things like:
- Technological advancements
- Changing industry regulations
- Inflation and price increases
- Fluctuating shipping demands
You need a solution that helps you remain agile and competitive in the face of these challenges.
How to future-proof your TMS
The following suggestions can help you augment your current TMS logistics methods while remaining flexible enough to handle whatever the future brings.
1. Analyze your business model
To begin, it’s important to evaluate your business model and devise a strategy that aligns with your short- and long-term goals. Here’s how to think this process through.
Identify your short- and long-term goals
First, pinpoint your short and long-term business goals. Make sure they’re specific, measurable and bound to a specific time frame, such as five or 10 years.
Understand the cost of business operations
How much are you spending on business operations? Having a clear idea may help you project operational costs as your business expands or evolves.
Assess your current TMS capabilities
What can you do with your current TMS? What are your limitations?
2. Invest in automation
Automation can streamline your core processes and eliminate errors and inefficiency.
To evaluate how technology can streamline processes, start by determining which areas of your business would benefit most from it.
Use automation tools to increase efficiency
Task automation and artificial intelligence (AI) can let you get more done without the burden of hiring additional personnel — all while increasing your business volume.
Invest in robust software solutions
The best software will integrate with third-party platforms, offering centralized, end-to-end visibility across your entire operation.
3. Improve visibility
Stay agile by implementing a fleet management solution that keeps your supply chain process transparent.
Implement real-time tracking capabilities
TMS platforms can provide tools for advanced route planning, allowing you to respond to challenges and make adjustments in real time.
Use data to gain better insights
Transportation data allows you to optimize your system, highlighting areas of inefficiency so you can implement appropriate solutions.
Implement systems that provide visibility into the supply chain
The best systems provide insight into your inventory control, shipping speeds and other metrics that can be used for process optimization.
4. Optimize your network
Your logistics network consists of your company and its various manufacturers, suppliers, retailers and consumers. Here’s how to keep it running smoothly.
Analyze the current network structure
It may help to make a chart showing the components of your network, the connections that link these components and the shipping speed between warehouses, retailers and consumers.
Identify inefficient routes and processes
Are there choke points in your network? Addressing inefficiencies can streamline the rest of your processes.
Use analytics to optimize the network
Data can help you measure the success of new solutions and identify areas for improvement.
5. Use data-driven solutions
Today’s businesses make decisions based on actionable data. Here’s how to make your data work for you.
Leverage data to make smarter decisions
Every decision should produce measurable benefits, such as reduced shipping time, lower cost or reduced driver turnover. Data can be used to validate your decisions and illustrate their benefits.
Use predictive analytics to anticipate problems
Advanced tools pinpoint problems before they begin, allowing you to adapt to local and industry demands.
Implement solutions that are data-driven
Every company is unique. Your data will steer you in a specific direction, helping you resolve issues within your logistics network.
6. Create a scalable process
When it comes to managing the growth of your trucking company, you’ll need a system that allows you to expand operations without incurring additional costs.
Develop a flexible process that can accommodate growth
Take stock of your most essential processes and make sure they can handle increased shipping volume. Otherwise, growth can short-circuit your core operations.
Use processes that are future-proof
How can you adapt your current processes to future changes? Consider how new technology, consumer behavior or inflation could impact your shipping business.
Use technology to scale processes
The right technology makes it possible to scale your business without the cost of additional employees.
7. Monitor performance
To adapt to change, you’ll need to keep your finger on the pulse of your trucking company. How do you monitor performance?
Track TMS performance indicators
Identify your key performance indicators (KPIs) and determine whether you’re trending positively or negatively.
Analyze performance data to identify areas for improvement
Take time each quarter or year to review your data. Look for opportunities to improve shipping speeds, cut costs or otherwise optimize your processes.
The future starts with you
Once your TMS logistics are future-proofed, you’ll be better able to keep up with the changing demands of the logistics industry.
By investing in automation, optimizing your network and using data-driven solutions, you can create a scalable process that can grow with your business and ensure that your TMS logistics are always running efficiently.
FAQ
TMS stands for transportation management system. It refers to the platform or system used to plan, monitor and optimize the movement of goods through the supply chain.
Trucking companies can use TMS data to identify areas of inefficiency, then devise solutions to overcome these challenges, saving time and money and reducing friction in the logistics process.
A TMS can help logistics providers identify and respond to challenges in real time. The same data can then be used to evaluate the effectiveness of the solution.