There are many benefits of TMS that manufacturers, distribution companies, and anyone who ships freight realize. They go often way beyond just the cost of shipping freight. If you can look at your freight and transportation department as more than just a cost, then you are thinking in the right direction on how to comprehensively help your business leverage a TMS for the maximum ROI. Return on Investment for TMS system can add up in dollars and cents in a variety of ways besides the traditional per shipment savings.

    Transportation management software is often thought of as a tool to help shipping departments select the lowest cost carrier. Other times, it’s looked upon for condensing shipments or enhancing the way a shipment is being routed. While these are definite features, a TMS also provides opportunities for savings in both soft and hard costs that create extensive benefits for your entire company, not just the transportation department. The TMS has a dramatic positive effect on the profitability of all departments.

    Without a TMS, daily operations can require significant fixed cost wages or salaries of the people equipped to handle logistics. With a TMS, many processes can be automated to the point where it requires less personnel, allowing you to reassign staff to more productive roles or avoid adding additional salaries. On average, with the assistance of Transportation Management Software, 10-15 freight quotes can be completed in one hour of an employee’s workday, versus consuming four to five hours of precious and expensive time quoting on a variety of individual websites and compiling the data to find the best carrier option for each individual shipment. In addition, since a TMS can automatically track and trace, it reduces the time required by employees to do so, improving upon customer service exponentially.

    The new TMS software has also been designed to be more user-friendly. It does not require months of training and/or complex manipulations, saving even more employee time that can be better utilized in other areas. Older systems required special skills to manipulate, but the new TMS software can be used by employees with less training or expertise.  By reducing the time it takes your employees to manually track shipments, it saves on employment expenses, reduces overtime costs, as well as increases employee productivity. Overall, the benefits far outweigh the costs once you consider the true time savings which translates directly into employee hourly wages and each company’s bottom line.

    Please contact or call at 717-626-1107 X 3 for any questions on how the benefits of TMS software and any other supply chain topic.

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