What is a Transportation Management System (TMS) ?
A transportation management system, or TMS is a platform that is designed to streamline the shipping process. It is a subset of supply chain management concerning transportation solutions. From quoting to delivery, those shipping freight are almost always looking for ways to optimize their spend and improve processes.
What is a Logistics Resource Management system (LRM)?
Logistics Resource Management is a supply chain management component that is used to meet customer demands through planning, control and implementation of effective movement and storage of related information, goods and services from origin to destination.
What are the benefits of LRM systems?
In the area of logistics, handing over the process to a logistics management software has its own advantages. With logistics management software, a company or 3PL could avail the following benefits:
- Refine Transportation: Transportation being a pivotal area of logistics incurs the most charges in the form of fuel, energy, labor, tolls and shipping fees. Relying on logistics software can help manage the various transportation means and leverage the data to automate the process. This allows for easy analysis, which a company can utilize to make relevant decisions for maximizing efficiency and reducing costs.
- Faster Delivery: Logistics being a linear flow of goods and services come across several issues that affect delivery and cause delays. By incorporating a logistics software, a singular benefit that businesses derive is in the faster delivery of products to the customers. A logistics management software can improve the speeds in delivery by interfering in the production cycle and selecting the right shipping service, which cuts short any delays to a large extent.
- Minimize Human Errors: The other notable advantage of having a logistics management software is in reducing human error. Analysis of transportation data results in huge quantities of data that is difficult, time-consuming and prone to errors when processed manually. A logistics software can process these data without any errors in less time, which will seamlessly push forward the operations with zero chances of delays.
- Automates Functions: Automation is another boon to integrating a logistics software to deal with the processes. Certain functions like creating shipment routes, load planning, and tendering of load to carriers are easily automated and managed by using a logistics software. Moreover, it eliminates paperwork, which helps deal with the processes in a more efficient and timely manner.
- Reduce Costs: Savings is the end result as the logistics software can automatically compare different shipping services, delivery agents and transportation methods to find ones with the least pricing. The other way by which a logistics software reduces costs is by lowering the expedited shipments through improved planning of the shipments.
What is the importance of having a Logistics Management Software?
Logistics Management Software allows shippers to reduce expedited shipments through better shipment planning and system-directed exceptions handling. Logistics software helps in creating route maps for shipments, that makes sure that the correct carriers are selected and the optimal shipping mode is used.
How is technology changing logistics?
Improved technology has also increased productivity in the supply chain by minimizing costs and errors. These advances benefit all areas of the logistics industry: trucking transportation, international transportation (ocean and air), supply chain management, and shipment tracking.