In 2008 only 20-30% of businesses were utilizing a transportation management system. Since then, TMS adoption rates have remained in double digits. These systems are most often used in conjunction with an ERP and/or warehouse management system. While the capabilities of TMS software varies by vendor, some of the top features and functionality found in most systems include dispatching, trucking/asset management, integrated accounting, freight brokerage and route management. When evaluating transportation management software industry decision makers often consider its’ ability to effectively and efficiently manage key business functions such as LTL and intermodal shipping; inbound and outbound operations; domestic and international transport; and internal and 3rd party trucking resources. These key operational functions, when automated using TMS can provide significant benefits to any supply chain or logistics operation. One of the most often realized benefits is the significant improvement in customer service levels. The performance data gathered allows supply china operators to make adjustments to both ineffective internal processes and problem transportation partners. Data accuracy will also see significant improvement. When integrated into ERP or WMS systems data entry errors can be completely eliminated. Distribution methods can also be easily adjusted and optimized to meet changing customer needs. The use of TMS simplifies the management of these distribution methods. TMS implementation also assists in reducing costs associated with storing excess inventory. Transportation management software use helps businesses to utilize JIT fulfillment strategies, carrying only as much inventory as is immediately needed. The savings realized here can then be passed on to customers, differentiating your business. These savings can also be used for re-investment in your operation. More closely monitoring transportation operations using TMS also helps to reduce expedite costs. This is most often done through exceptions management functionality that helps your team to be proactive rather than reactive. These fees can quickly add up and take away significant capital needed for other business areas. Lastly, implementing a TMS improves load consolidation capabilities. With a far superior view of outbound shipments your team can more effectively stage and load trailers with little to no wasted space. Learn more about evaluating, selecting and improving your operation with transportation software by contacting Datex experts today at marketing@datexcorp.com or 800.933.2839 ext 243.

1. TOP 7
BENEFITS:
OF IMPLEMENTING
A TRANSPORTATION
MANAGEMENT
SYSTEM
BY: ANGELA CARVER

2. What is TMS?
• Transportation management systems (TMS) are defined as “a subset
of supply chain management concerning transportation operations…”
• These systems often operate in connection with ERP and/or
warehouse/distribution software.
• In 2008 SupplyChainDigest reported that only 20-30% of businesses
reported utilizing TMS software. Since that time, transportation
management software annual adoption rates have remained in the
double digits.
https://en.wikipedia.org/wiki/Transportation_management_system

3. Top TMS Features
• Like any other supply chain software solution transportation
management software features and functionality varies by vendor.
• Experts have identified some of the top TMS features and the list
includes:
– Dispatching
– Trucking/asset management
– Integrated accounting
– Freight brokerage
– Route management

4. Top Uses for TMS
• For annual adoption rates to increase, TMS vendors must prove their
technology is a viable solution and can be used practically in
customer supply chain operations.
• The top criteria operations and IT managers evaluate TMS software
based on is its’ ability to manage:
– LTL and intermodal shipping
– Inbound and outbound operations
– Domestic and international transport
– Internal and 3rd party trucking resources

5. Benefit of Implementing TMS
• Improve Customer Service Levels
– Using reporting and gathered analytics from your TMS can help
your team to better serve customers. Recording, analyzing and
acting upon key performance indicators (KPIs) such as on-time
delivery and damage rates allow you to identify and rectify issues
relating to transportation services.
– Eliminating problem transportation partners or in-house drivers
and replacing them with high performing alternatives will help to
improve overall customer satisfaction.
1

6. Benefit of Implementing TMS
• Improve Data Accuracy
– Integrating your TMS into key software systems such as
warehouse management software (WMS) or enterprise resource
planning systems (ERP) significantly reduce or eliminate manual
data entry - a key source of data error.
– Capturing and transmitting data using automated data collection
technology (ADC) will allow your team to collect data at all levels
of the delivery process that can be used across the enterprise.
2

7. Benefit of Implementing TMS
• Easily Optimize and Expand Delivery Strategies
– The implementation of transportation management software
allows your team to more easily add, adjust and automate
distribution methods.
– With omni-channel retail increasing the complexity of many
distribution strategies, it is more difficult to manage these
without added assistance. TMS implementation can simplify
these processes for your team.
3

8. Benefit of Implementing TMS
• Reduce On-Hand Inventory Costs
– The analytics gained from the implementation and utilization of a
TMS allows for higher level just-in-time delivery and
replenishment strategies. JIT delivery is only possible with the
real-time tracking data.
– Implementing a JIT strategy allows your facility to reduce
inventory levels and the associated inventory costs. These
savings can then be passed on to customers making your supply
chain business more competitive.
4

9. Benefit of Implementing TMS
• More Available Capital
– The reduction of on-hand inventory and the associated costs
recognized when implementing a TMS system allows your supply
chain operation to free up additional capital that would have been
tied up in holding inventory otherwise.
– This freed up capital can then be re-invested in your business to
promote growth.
5

10. Benefit of Implementing TMS
• Reduce Expedite Costs
– With the improved transportation planning that your TMS affords
your operation your team can expect a significant reduction in
expedite costs.
– This reduction is due largely to the system-directed exceptions
handling functionality present in the software. This feature allows
your shipping operation to be proactive rather than reactive and
avoid absorbing these costs.
6

11. Benefit of Implementing TMS
• Improve Overall Load Consolidation
– Paired with the directed loading function of your warehouse
management software, your pre-planning capabilities are far
superior than when used alone.
– This insight into outbound shipments helps your team to more
effectively stage and load trailers, making the most of each
outbound load.
7

12. Conclusion
• Before implementing transportation management software it is
critical to evaluate your current operation and identify areas needing
improvement and where current functionality gaps exist.
• This evaluation will help your team to select a best-fit TMS solution
that can provide these top benefits and many more.

13. Need help with your technology needs? Talk to
Datex. We are here to help.
800.933.2839