Six Benefits of Transportation Management Services

Written by Neal Willis

transportation managementOf course, transportation management services can yield lower freight costs, but they can also be beneficial in other areas and have become increasingly important to both shippers and carriers. Transportation management services often involve technology offerings that support transportation and other freight related functions and assist with lowering freight transport cost through administrative efficiencies. Beyond lowering freight costs, other benefits that can be realized through the use of transportation management services include: Data, Customer Satisfaction, Improved Cash Flow, Staffing Efficiencies, Time and Process Standardization. 

Data for Driving Better Decision Making

Whether through a freight bill payment and audit service, Transportation Management Software (TMS) or both, shippers are able to capture data they’ve never been able to wrap their arms around in one, centralized location, providing them with easy access to data analysis for multiple aspects of the business.

Customer Satisfaction

Through streamlined processes and better customer support with faster response times for issues such as tracking and invoicing, shippers can greatly enhance their customers’ satisfaction levels.

Improved Cash Flow

Freight bill audit and payment, as well as centralized billing support, can improve cash flow. By standardizing the payment terms for shipments, such as marking everything freight collect or freight pre-paid, shippers can more accurately plan their cash flow by knowing what to expect in terms of freight invoicing and payables and receivables. Also, when working with LTL carriers direct, shippers are commonly on terms of net 10 or 15 days with the carriers for payment of freight invoices. A transportation management service can sometimes give shippers an extension of net payment terms beyond net 15 days with the LTL freight carriers, allowing them to hold on to their money a little bit longer before having to make payment.

Staffing Efficiencies

transportation management servicesA transportation management service allows shippers to utilize a staff of trained professionals without having to incur training expenses and/or having to endure a learning curve. Plus, when your business grows, there’s no additional payroll expense added to your business costs.   

More Time to Focus on Core Business

By allowing a transportation management firm to handle the freight and freight related support functions, it gives you more time to focus on your core business and less time spent dealing with freight related headaches such as running rate quotes or fighting an invoice discrepancy with a freight carrier.

Process Standardization

Transportation management services often involve the standardization of certain processes, such as centralization of the freight payment and invoicing functions across many locations to one department/location. By creating the standard across the entire company, it allows for a more clearly defined path for customers and employees alike to follow when problems arise or questions need answering, saving time and money for everyone involved.

When selecting a transportation management services provider, keep in mind that transportation management services not only offer lower freight costs through lower freight rates, they can also help with a plethora of freight related functions ranging from freight bill audit and payment to customer service support for tracking, billing and freight claim assistance.