Cloud transport management systems: advantages and prospects
The transport component of the business largely determines the success of the company. Because today consumers are interested not only in the quality of the product but also in its timely delivery.
The links between manufacturers and carriers are becoming more complex, so systems transportation management requires a search for new solutions.
Problems in the field of transport logistics
What problems does the company’s transport management system often face:
- Poor informational support. The manager is not always able to keep in touch with the driver to find out where the cargo is and when the delivery is expected. The company representative cannot monitor the movement of goods in mode real-time without online services.
- Difficulty in building routes. It is practically impossible to calculate manually the optimal scheme, especially if you need to cover 5 or more delivery points. Wrong routing leads to idle runs, additional costs and late delivery of goods.
- The complexity of the interaction of several types of transport. It is impossible to work without vehicle docking during transporting goods to long distances. Errors in organizing multimodal transportation are becoming expensive for consignees.
- Underload of rolling stock. This leads to unprofitable transportation and unmanageable shipping costs. The goods are more expensive for the end customer, and due to the high margin. The company loses its competitive advantages.
- Lack of software products in the field of logistics. Even top systems transport controllers do not always cope with complex logistics tasks.
Technology and the marketplace are constantly changing, so programs need to adapt to new conditions. But it is software that can be an effective solution to all problems in the field of logistics. You just need to choose the right application that will include the system which will perform the necessary calculations and will offer the best algorithm for the task.
What is a transportation management system?
TMS is a software package that aims at planning, routing, monitoring and evaluating indicators at each stage of transportation. A set of tools allows you to automate all logistics processes, save time and reduce transportation costs. Integrated software is replacing outdated schemes when all routes were lined up by hand and finances were calculated using Excel spreadsheets.
Thanks to the integrated transport management system, delivery and shipment there are on time. The manufacturing company receives raw materials and components on time, and the order is delivered to the end customer on time. The entrepreneur gets the opportunity to establish himself as a reliable supplier, increase the number of satisfied customers and stimulate profit growth.
TMS main tasks
The transportation management system plays a key role in the supply chain. It allows you to competently organize the entire life cycle of the company from the purchase of raw materials to courier delivery to the client.
The main tasks of TMS:
- Planning. The program calculates a cost-effective delivery method, finds the lowest shipping rates and the most reliable transport partners. The conditions and parameters of transportation are taken into account. The system compiles the best routes, calculates the terms and provides the client with information about changes in the marketplace.
- Implementation. Transportation management systems can include options for consolidated cargo, vehicle docking, automatic import of orders, and tendering between carriers. The user can quickly unload, reconcile and pay invoices, print transport labels, and generate reports.
- Optimization. The system provides detailed information at all stages of transportation from loading to arrival at the consignee’s warehouse. The supply chain becomes transparent. The user sees the weak links in the scheme and can eliminate them promptly. Transportation becomes streamlined and company costs are reduced.
All TMS tasks are solved through the automation of basic and additional processes objectively. A manager needs a couple of clicks to charter a carrier, consolidate the cargo and track its delivery instead of a series of calls, emails and messages in instant messengers.
After implementing the best transport management system, the company will be able to:
- systematize all the information necessary for making management decisions;
- simplify the supply chain for different regions, carriers and modes of transport;
- improve visibility and safety on the route;
- shorten delivery times and reduce shipment delays;
- track all cargoes on a single platform;
- generate new business ideas based on the analysis of delivery processes;
- eliminate the influence of the human factor.
Local and Cloud TMS
All programs for transportation management can be divided into two groups:
- local – this is software that is installed on a computer using physical media (disk or flash memory);
- cloud – these are online transport management systems that are accessible from any device (laptop, computer, tablet, smartphone).
Local logistics programs are gradually giving way to cloud solutions. The online application has several advantages over the desktop versions:
- fast deployment is the application is easily integrated into the client’s business system;
- quick learning is a program that is easy to learn thanks to a well-thought-out interface;
- increased security is reliable protection against data leakage;
- accessibility means that you can connect to the platform from any device and any location (in the office, from home or on the road);
- automatic updates are cloud solutions are constantly improving, offering customers useful features;
- fast return on investment is TMS is positioned as a service with tariffs for using the program without impressive initial costs;
- service support means that the platform is maintained by a strong development team who promptly troubleshoot and help sort out the settings.
All the advantages of an online vehicle management system are collected in the GoRamp software. It is a cloud-based service for entrepreneurs looking to take their customer service to the next level. The program will help to improve the interaction between the company’s warehouse and carriers, optimize production processes and control transportation at all stages.
What companies are suitable for cloud TMS
The advantages of the online platform will be able to assess:
- transport companies with their vehicle fleet;
- logistics service providers;
- companies offering multimodal and international transportation services;
- distributors who distribute products through an extensive distribution network;
- manufacturers who need to control the delivery of raw materials and the shipment of finished products;
- service companies for targeted delivery of orders within populated areas;
- e-commerce companies for organizing trade on marketplaces;
- agricultural firms to control the transportation of agricultural products from the field to storage facilities;
- representatives of small and medium-sized businesses, retail trade.
Especially they need integrated transport management systems for corporate enterprises with a large cash turnover. Only a complete supply chain management package will help them manage production processes efficiently. Small and medium businesses are increasingly turning to cloud platforms. They have to do business on the Internet, speed up delivery and hire employees to work remotely in the context of globalization.
How cloud TMS helps you save
Here are the real figures of savings using online services to optimize transportation. The cost savings for shippers range from 5 to 15% according to the statistics. At the same time, companies spend 75-85% less time on transport logistics and distribution of goods. Let us consider in more detail the reasons for such results.
How to save money
Comparison of tariffs. The user automatically gets access to all carrier fares for easy viewing and comparison. You do not need anymore to switch between individual sites and monitor price tags because all information is collected in a single window. TMS allows you to choose the most favourable rate for each shipment thereby saving money on each shipment.
Audit of accounts. By mistake of the manager, incorrect or random invoices may be attached to the shipment. For example, an incorrectly calculated commission for a truck downtime can significantly increase the check. When paying bills manually, these points are often ignored. The manager simply does not have enough time to fix errors. The cloud program automatically fixes errors and eliminates unnecessary bills, also allowing you to save large amounts.
Analysis of freight costs. The user can access not only tariffs but also analytical information about partners. It knows how well the carrier is performing in a particular lane and can choose the carrier with the best results. The manager can negotiate with the carrier to revise rates or increase the level of service if he understands the level of market rates.
Optimization. Companies with long supply chains can not accurately calculate every step and they miss out on great deals. The best transport management systems help logistics teams create optimal loads and routes. Transportation becomes profitable and the company saves money.
How to save time
Logistics professionals are sometimes sceptical about TMS because they know their job intimately. But suppliers of transportation management systems assure that even an experienced logistician can save a lot of time with modern software. You can refuse dozens of calls, emails and tables because all actions are performed in one tab.
The integrated system will help process hundreds of orders and dozens of shipments per day. Furthermore, saving a few minutes on each order adds up to tens of free hours per month. This time can be spent on strategic planning rather than correcting mistakes.
Prospects for the development of transport management
Customer expectations continue their growth in prompt delivery questions. Global trade dictates its own rules, and business logistics is forced to adapt to them.
What the TMS of the future can offer:
- intelligent cargo tracking;
- integration between partners in the blockchain system;
- digital assistants and chatbots to increase interactivity;
- guided actions based on analytics and forecasting;
- fleet monitoring in real-time;
- cold chain management for the transport of perishable goods, etc.
The GoRamp team is constantly working to improve the cloud service, offering the most efficient logistics solutions. The transportation management system becomes even more reliable and functional with each update. Also, it is providing a fast response and comprehensive data analysis.