Everyone industry require a reliable system to manage organization resources and this appears to be great if industry in manufacturing large products. A transport management system may be appears a final step as it include picking up the finished good and then packing and shipping it.
What Is Transport Management System
Transport management system is a program that is designed to provide aid to business organizations in managing their logistics supply chain. A transport management system include management of shipping units, making schedule for shipments, regular check of freights and the main important task is to check damages and losses.
Enterprise Resource Planning Systems (ERP) Are Required In Transport Management
The enterprises resource planning is used in organization for the purpose of collecting, organizing and storage of important data. It becomes very easy to plan the resources with this. Enterprises resources planning system are required in transport management system for managing cost and planning.
Key technology in transport management system
Transport management system works their proper TMS software. There are many component who together help to make a great transportation. For this need understand the use of various technical devices like traffic controller, LED traffic lights, boom barriers, traffic detection and speed controller.
As we are talking about ERP together with TMS so in that case you need to have proper parking guidance solution, boom barrier and toll management solution.
Before going deep in to topic lets understand the above terms.
Parking Guidance Solution: – it provides useful information as at which place driver can park his Vehicles.
Boom Barriers: – its bar or pole pivoted to allow the boom to block vehicular access.
Toll Management Solution: – this system is designed to collect toll value according to vehicle’s class.
How transport management solution can reduce the cost.
A good transport management can reduce the cost if it is used efficiently
It helps in creating efficiency and productivity as you implement a TMS it can save your time and you can used that time in increasing more productivity. These systems are built to be customized to suit your needs. And if the TMS is intergraded with ERP or WMS than the process become totally faultless.
It enjoys the benefits of reduced costs through carrier selection and optimization
TMS has ability to track all the carriers, their fees and the amount they spend on daily transactions in order to have more saving. As the system uses automated carrier rating and so it’s easy to choose carrier on the base of low cost and fastest transit time.
Better customer service levels
It provides a great customer service for growth of business’s a customer always wants to know where his order is at a particular time. And with the help of TMS he can easily track all these. Customer can easily check on time performance. A TMS can show you how often a carrier meets.
Warehouse efficiency
By using transport management system it’s easy to save time on freight management and so you can have more time to work on other projects such as warehouse duties.
Cash flow improvement
By employing freight accounting, the company can easily save 2percent to 5 percent.
Which transport management system is right?
If you going to have transport management system than you must look the fallowing feature in your TMS:-
- It should have carrier contract management that can track all your individual terms and carrier agreement in real time.
- A good TMS should be able to avoid international shipping risks by automating audited processes and ensuring sue diligence within country regulatory programs or cross border customs requirements.
- If a company is working internationally than it should support multi language interface screens, support foreign currencies, and calculate value added taxes.
- A good TMS should support visibility of items in transits along with auto pick up, automated notification and exceptions alerts.
- Prefer to go for a TMS that can handles parcel rating and routing as well.
- TMS should be able to simplify accounting by auditing and paying freight invoices, creating payment vouchers and allocating cost.
There are many other lots of features but you need to choose a TMS according to your requirement.
