Freight forwarders need TMS (transportation management software) to compete in today’s digital world.
Transport management system (TMS) software allows freight forwarders to manage their entire network from one coordinated system. The entire transportation chain, from customers to drivers to customs to deliveries, are easily managed through intuitive visual displays. TMS software integrates with both legacy freight forwarder systems and client systems, making customer service a snap. With the freight industry growing more competitive, freight forwarders are searching for ways to speed deliveries and cut costs.
Why do freight forwarders need TMS software in today’s world?
TMS software for freight forwarders achieves both these objectives, allowing those who effectively employ it to gain a critical edge over the competition. TMS software uses automation to pinpoint the best transport company
In the old days, freight forwarders had to manually determine which transporter to select for each job. When contracted rates were kept on paper, this was laborious and prone to error. Few freight forwarders have the spare employees to compare each individual transportation contract against the needs of each unique situation. This leaves money on the table.
TMS software stores contracted freight rates and can automatically match the best freight rate according to the conditions required for satisfactory job completion. The TMS planning module suggests recommended routes to the user based on the criteria specified. The user can then evaluate the options and select the reasonable choices. These reasonable choices are then fed into the transportation provider analysis module, which selects the best option with the least cost. After the selection is made, TMS software creates electronic cargo tracking data for the selected carrier, as well as freight paperwork.
The four key processes of TMS software
Automated decision making
Freight forwarders enter specific parameters in the TMS system according to rank of importance. For example, one freight forwarder might rank the importance of parameters as 1) cost 2) lead time 3) fewest stops. TMS software then analyzes all the available options and determines which best fits the criteria.
TMS automates many of the processes necessary to complete a freight forwarding order, such as carrier rate acceptance, dispatching and tracking.
Many administrative functions are automated through TMS software. The software can efficiently track customs clearance, booking related docs, invoicing, and transmit alerts if there are delays.
A key benefit of TMS software is the creation of key performance indicators, which rank vendors according to how consistently they achieve predetermined goals. For example, a freight forwarder can rank transportation companies according to the following criteria:
• On time delivery percentage
• On time pickup percentage
• Cost Per mile
• Cost per weight
• Cost per pallet
• Number of units shipped
• Order to weight ratio
• Order to load ratio
Freight forwarder TMS software means never overpaying again
In an industry as competitive as freight forwarding, overpaying can slice vital margins and endanger your business. Overpaying was difficult to avoid in the pre-TMS software age, as rush orders and shortage of personnel prevented thorough analysis of many orders. There were just too many competing priorities, and rate comparison had to be sacrificed for customer service and on-time delivery. Freight forwarder TMS software solves this problem by automating the rate comparison process, which identifies the best cost according to the conditions in seconds. This creates savings that go straight to the bottom line.
Choosing a TMS system
Freight forwarder TMS systems that provide a user-friendly experience result in the most benefit. In a business with intense time pressure, overly complex or unwieldy and slow software systems cause losses in efficiency that hurt both the bottom line and customer satisfaction. Efficient TMS systems make all the difference. For example, software that automatically imports and updates contracted rates saves time that can be devoted to business development. A user-friendly system will also provide an intuitive layout for building customizable analytics reports. This allows managers to get the overall picture and drill down on specifics, a keyway that freight forwarder TMS systems save costs and increase company performance.
TMS software automates many of the necessary tasks that do not contribute directly to profitability. When the labor cost is taken out of these tasks, the bottom line quickly improves. Also, the labor that once completed these tasks can now be redirected to customer service, operations and business development work, which grows the business and creates additional efficiencies. The successful freight forwarders of the future will be those that use TMS software stay ahead of the competition.
CSA Software provides Cloud-based freight management software solutions for every aspect of your freight business. Whether your business is domestic or international, we offer the best product in the industry utilizing the latest in Microsoft technologies. Our freight forwarding software solution products include World-Trak, Web-Trak, Wms-Trak, LTL-Trak and more. Offering add-on operational interfaces and customizing software to meet each client’s individual needs, our freight forwarding software is available for you to try for Free. Contact us for your Free Demo!