5 Ways A Transportation Management System Increases RevenueWritten by Paul Forand
An increasing number of smaller businesses have begun to invest in Transportation Management Systems (TMS) specifically to help them get their shipping costs under control. Are you still doing everything on paper?
A TMS can have many different functions, but broadly, its purpose is to optimize freight routing and billing, and to centralize freight data for easy access. For example, it can allow agents to easily look up the shipping costs for a product at the point-of-sale. It can also track shipments, bills, and payables to enable company-wide auditing and optimization.
Freight costs are one of the most controllable elements of a business today, but a company sometimes needs help to get them under control, and that’s where a TMS can come into play.
Five Of The Many Ways A TMS Helps Your Bottom Line
1 - Faster turnaround times.
One of the biggest single benefits a TMS brings is speed. Paperless electronic processes will shave hours, days, and potentially even weeks off processing time. Further, predictive analysis can save even more time by allowing you to pre-plan for needs based on historical analysis.
Better communication likewise means that any hiccups in the processes can be identified earlier, speeding their resolution and minimizing inconvenience to the customer.
2 - Rapid eBilling and payment verification.
Most TMS platforms support electronic billing via EDI 210, which is the standard used throughout the freight industry. When the shipper, carrier, and recipient are all on compatible systems, this can greatly reduce the time between bills sent and payments received.
Often, it's entirely automated, with the recipients' systems processing the payment as soon as it appears.
3 - Faster quotes bring more customers.
Businesses are increasingly unwilling to wait days for an estimate, especially for a transaction they consider routine. With a TMS, your employees should be able to look up virtually any freight quote within a few minutes, at most, with extremely high reliability.
After all, if you're still taking a week to get an estimate to a customer, you can be virtually guaranteed that he's spending that week calling other sources.
4 - Find least-cost options for every shipment.
There's basically no limit to how much data can be incorporated into a TMS, and this includes most major carriers’ freight rating web services
This gives you far more ability to minimize freight costs on every shipment, which creates value you can pass straight on to customers - and that's important today! With free/reduced cost shipping being a major selling point online, anything you can do to reduce costs can potentially bring in more customers.
5 - More customer empowerment.
Absolutely everything mentioned above can be implemented on your website to give your customers more choices. A user friendly website can bring huge benefits to your customers, and make their lives far easier.
A TMS Optimizes All Shipping
From finding better rates, to empowering customers, to forecasting, there's little limit to what a well-integrated TMS can do for your operations.
To learn more about how you can benefit from an online TMS, contact ReTrans Freight today for a free cost-savings analysis!