Selecting a Transportation Management System (TMS)
- Published: 04 Mar 2016
A transportation management system (TMS) allows companies to move freight efficiently, consistently and cost effectively. Prior to purchasing a TMS, create a list of features that your business would require from the system. Some features of a TMS to look for include:
1) Providing insight into your businessThe TMS analyzes shipping practices and provides insightful information. This allows you to review current practices and what can be changed to improve operations. This information will assist in reducing shipment delivery times, reduce costs and provide performance indicators of current practices.
2) Accounting capabilitiesSee if the software has the ability to simplify accounting processes such as:
- Allocating costs
- Auditing and paying freight invoices
- Creating payment vouchers
- Assigning billing codes assisting with budgets and billing
3) Track and manage carrier contractsA TMS can track carrier agreements, terms of each contract and provide carrier charges for a shipment. The system allows this information to be easily accessible and provides simple carrier selection. Select a TMS that can:
- Track all terms and carrier agreements
- Provide alerts when it is time for contract renewals
- Display total costs, including extra fees, allowing you to select the lowest costing carrier
- Calculating the precise cost of delivery, providing you the amount to charge your customer
4) Rate negotiationA TMS provides carrier rates and service information, which allows the user to negotiate better rates. This information also allows the creation of data for specific shipping lanes. The user is provided with information to create the best rates for shipments.
5) Provide item visibilityProviding full visibility of the item(s) being shipped and comprehensively track the status of the shipment. Look for a TMS that provides:
- Automatic notifications
- Integration through EDI with a carrier
- Exceptions alerts
Providing customers with full visibility will keep your customers satisfied and manage your costs. Our TMS at ADLI Logistics allows our customers to access to their shipments and provides them information as to where their shipments are at all times. For more information about our transportation services, please call us at (877) 363-7281 or fill out our contact form!