If your freight spend is approaching $500,000 a year and you’re not utilizing a Transportation Management Software System (TMS) to consolidate orders; you’re likely leaving money on the table and missing out on valuable process optimization and customer service opportunities.
A transportation management software application is used to increase efficiency, reliability, and cost-effectiveness as inbound or outbound freight is moved from origin to destination. Suitable for moving freight of all sizes, from parcels to bulk commodities, a TMS optimizes domestic and international freight movements across all modes, including intermodal, by:
Throughout the process, the TMS provides real-time shipment visibility across multiple carriers.
At Kenco, we leverage MercuryGate, a flexible, powerful, and cost-effective TMS that is adaptable for companies of all sizes and shipping volumes. Utilizing MercuryGate, the standard process we follow for customers is as follows.
While reducing freight spend is often the driving force behind the adoption of a TMS, it is only one of the benefits. These savings are achieved through process enforcement, analytics, and optimization.
Additionally, the data that resides in the TMS can be leveraged as priceless business intelligence. Key metrics like on-time delivery and freight cost per pound or unit can be used to measure overall performance and understand what is driving costs. No other supply chain application provides so many value and cost-saving opportunities.
A WMS is focused on controlling the movement and storage of materials within a warehouse as well as other associated transactions. While Kenco’s TMS is available to any customer, customers who leverage both our TMS and WMS benefit significantly by gaining complete supply chain visibility and cost control.
The ability to look into both transportation and warehouse systems allows management to weigh competing interests to find the lowest supply chain cost. For example, if a warehouse-bound truck is delayed past closing time, is it more cost effective to pay extra warehouse labor or layover the truck? Complete supply chain integration makes these decisions easier.
If you’re unsure about implementing a transportation management system at your company, begin by considering the importance of freight visibility and the current and estimated future scale of business. If volume has grown so much that spreadsheets are no longer a sufficient management tool, it may be time to think about how a TMS can reduce logistics costs, increase service levels, and improve overall supply chain positions.