Effective Transportation Management Solutions

The efficient management of transportation systemsand integrating all these can be made simple with the
raises the quality of products and services that areright applications.
rendered to end clients. Transportation managementTransportation management solutions that have been
systems have emerged to address the increasinglydeveloped are designed to automate a business
complicated logistical needs of business organizations.firm's transportation network, both inbound and
According to market research, the Transportationoutbound. This instrument paves the way towards a
Management Systems (TMS) market had exceededmore efficient day-to-day operations including source
$1 billion in 2006. Through the years, the objective ofto shipment assignments. Moreover, by ensuring a
a TMS implementation remains to be thesmooth flow of these operational activities,
achievement of customer service level requirementsrelationships with suppliers and carriers may be
at the lowest possible cost.strengthened. The benefits of integrating TMS into a
Transportation Management Systems (TMS) is acompany's operation strategy are not limited to the
software application, often web-hosted, that is usedincreased efficiency of the supply chain. By eliminating
as part of logistics management especially forlogistical problems, companies can focus on providing
activities like managing shipping units, shipments thatquality services to customers. Consequently, with high
are outbound and intra-company, inbound shipmentcustomer satisfaction, overall profitability of a firm will
scheduling, bills of lading generation, carrier orincrease.
transportation mode selection, freight bill auditing andManagement of transportation facilities is often
payment and processing of loss and damage claims.associated with the concept of logistics and supply
These systems often feature a "dashboard" or achain management. These two principles are primarily
graphic user interface portal. The dashboard displaysconcerned with the smooth flow of certain goods
data according to key success factors that arefrom the supplier of a manufacturing firm to the end
relevant to the user.users which are the firm's customers. Aside from
Companies, especially those with complex supplytransportation, other important logistical concerns are
chains, make use of TMS so as to manage and trackinventory management, materials handling,
shipments that may be carried by air, land or sea.warehousing, inventory management, and customer
Several shipment options are available for clientsservice. For various businesses in the United States,
including truck, parcel, intermodal, private fleet, rail, orlogistics make up 20 to 30 percent of total operating
through domestic carriers. Some systems allow clientscosts. By utilizing an ideal TMS program, it will be
to track their shipments online. Other TMSmore convenient for business executives to plan and
incorporates Global Positioning System navigationimplement supply chain activities. In addition,
technology to enable fleet managers to monitor andperformance efficiency of the entire supply chain will
dispatch vehicles in accordance with shipmentbe guaranteed and the company will benefit from
schedules. The advancement of technology has madecost savings.
it possible to transport goods in virtually any mode