Many businesses that ship through 'Less than Truck Load' (LTL) freight services, can achieve greater efficiency and cost effectiveness of their logistics and transportation departments while using Transport Management System (TMS).
Most large scale manufacturers, wholesalers and distributors who freight expenditures run into lakhs every annual, have already acknowledged the use of TMS as an effective tool in controlling their costs and enhancing their work efficiency. But the smaller companies, with not so much spending on their freight, are yet to embrace this technology in the wrong notification that TMS is best suited only for larger scale freight management. The truth though is that TMS can benefit small time shippers as it can also help enhance LTL freight efficiency just as much as it would a FTL (Full Truck Load).
Top Benefits of Using TMS in LTL Freight Management
Loads can be matched with the best lanes, equipment and carrier through TMS which will also help in getting the best possible rates without needing to compromise on the service. Here are some top benefits that talk about the benefits of TMS when applied to LTL freight management;
Enhances Communication Between Parties
Most of the TMS programs are online today, which aids in storing very important documents and communications that may be of help in the future. The communications between various parties such as a third party logistics provider, the carrier, consignee and the shipper can be stored for any future references. This gives a great mileage for any business as there is no need to go digging for documents Else as everything is stored and can be retrieved in no time. Notifications can also be automated which facilitates instant communication to all concerned parties as to the location of the freight at any given point of time. This there fore ensures that there is no lack in communication which can lead to plenty of confusion and stress during the transport process.
Facilitates Freight Accounting
In the case of multiple LTL shipments going out per week to multiple locations, freight accounting can become very overwhelming. This calls for plenty of freight invoices that need to be manually checked, paid, audited and managed efficiently. When TMS is implemented, all information relating to the shipment is made available at the click of a button. This can help in avoiding plenty of costly errors. All shipment information will be easily available along with instant and automated reports that can even show the differences in pricings between the actual invoice and the quote given for the same. Such details help to minimize stress, risk and enhance performance while saving time and cost. Since all shipment information is available at the click of a button, it becomes easy to monitor the income and expenses on a regular basis thereby helping to take important management decisions.
Simplifies the Process
Automation of logistics helps in integrating the commodities through the ERP system. This eases out the data entry process. One time feeding of the charges, surcharges, prices help avoid repeated information entry that will minimize the transactions of data entry errors while reducing labor hours spent on the data entry process. Data entry errors are known to lead to heavy losses at times or can even ruin the relationship between a supplier or a customer and the business. This can be averted through an efficient transportation management system in place.
Better Control and Management
With a proper transport management system in place, instant information on the freight rates, performance comparisons, restrictions of user choices, space for future developments and growth, reducing man hours on the process, fuel management, driver control, etc. can be enjoyed. This facilitates an easy process while offering better control and management.
Data and Analytics
Spot reports are one of the most advantageous outcomes of having an automated logistics control in place. The reports offer an invaluable insight into LTL freight shipping details that includes profit and loss statements. Easy comparisons can be made between carriers, which includes time comparisons, cost comparisons, route comparisons and overall efficiency comparisons which can help in taking future fact based business decisions.
Visibility of Shipments
A proper logistics system will enhance the visibility of the shipment as all parties involved will know where the shipment is, how long it will take for it to reach its destination and the nature and quantity of goods that are being shipped. This helps to build better rapport among customers and suppliers all the same.
Apart from the listed advantages there are additional back office support advantages that can be enjoyed such as; daily pricing reports, auditing of freight bills, bills of lading generation, claim processing, proof of deliverations updates, appointment confirmation entries, tracking of goods, spot scheduling of goods, fuel monitoring, pick up scheduling, etc. which offers a great deal of support for LTL freights.