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Logistics Backed by the Cloud: The Many Benefits of Cloud-Based TMS

Cloud-based logistics management solutions allow businesses to meet the need to be flexible with the benefit of real-time visibility. A cloud-based logistics system improves efficiency and reduces overhead operational costs while helping to manage the changing demands of modern supply chains. A cloud-based TMS allows companies to run a successful supply chain operation.

Cloud-Based Technology Streamlines Logistics Operations

The development of cloud-based technology has revolutionized the logistics industry. Cloud computing uses servers, storage, and analytics to create a more efficient way to run logistics operations. The use of cloud-based technology in the logistics industry has accelerated quickly over the last five years.

Cloud-based computing streamlines the management of logistics operations by providing a central hub for inventory, shipping, and receiving data, which makes tracking and managing inventory levels easier. Cloud-based software improves delivery times with automated tracking and tracing. Analytics and reports can help managers improve their systems. A system that is cloud based has become essential for getting the most value from transportation operations.

What is a Cloud-Based TMS

A TMS (Transportation Management System) that is cloud based manages the transportation of goods in real-time. It can optimize routes by monitoring traffic conditions, weather conditions, and other information that plans transportation more effectively. Inventory and order management are also part of a TMS solution. Advancements in technology have allowed TMS solutions to move from on-premise to cloud based with a host of new advantages. The difference between a cloud based or in-house TMS solution can make a big difference in the daily operations of an organization.

How Does a Cloud-Based TMS Help a Business

Cloud-based platforms have many advantages including visibility, easy access to information, scalability, to name a few. When used in logistics operations, it creates many opportunities to reduce risk and waste. Cloud-based logistics is ideal for businesses that need to scale because they can quickly add locations, carriers, providers, and users. A cloud based TMS offers far more advantages over traditional systems.

Real-time Visibility

A cloud-based TMS provides logistics managers with an overall view of transportation operations that can be accessed from any device. Detecting and resolving any issues can be done from anywhere at any point in the transportation process. Key performance indicators (KPI’s) ensure that all of the involved parties have access to the same information and are able to make decisions based on that data. Data that comes from the cloud gives more control over the shipping process such as tracking shipments in real time.

Responsiveness

Real-time data and analytics of a cloud-based TMS enhance visibility of the entire supply chain from any internet-connected device. Different divisions and locations can share processes and workflows in real time. Every employee is able to access the same information remotely. A study found that 52% of supply chain executives found that using cloud technology helped to increase resilience. Any new information can be shared in the cloud to everyone at the same time so decisions can be made more efficiently. Managers can observe transportation processes in real-time from remote locations and modifications can be made instantly.

Cost Effective

Cloud computing reduces costs by automating certain processes and eliminating expensive hardware and software. New servers and software licensing fees are cut drastically because cloud-based systems charge for the resources that are used every month. This means that the costs are in line with how the business is using the software. And being able to associate a price with every logistics element of the supply chain enables better management of costs. Since pricing elements for warehousing and transportation can vary and fluctuate based on a number of factors, this gives greater control of the entire process. TMS providers that operate via the cloud handle all of the infrastructure updates and upkeep at a lower overall cost, making the ROI higher than the actual investment.

Scalability

One of the biggest benefits offered by cloud-based technology is scalability. Cloud-based TMS software allows businesses to scale up or down, depending on the season or need. Logistics operations can adapt to peaks and valleys throughout the year. Because there are no licensing or server restrictions with cloud technologies, when a new carrier or partner is added, they are able to be added easily.

Easy Access

The cloud is a virtual desktop that can connect anyone its information and can be accessed from anywhere with an internet connection. The setup of cloud computing is ideal for businesses that need portability, for example with remote teams, or mobile employees that are traveling. Because the data is stored on the cloud, data does not need to be transferred among employees.

Increased Security

Cloud-based TMS software that is back with blockchain is more secure than traditional solutions, which can be more vulnerable. Cloud-based systems with blockchain are protected by secure encryption of every piece of data, mitigating the risk for a security breach. Some platforms also incorporate advanced enterprise-grade enhancements that ensure privacy controls and prevent unauthorized access to information.

Improved Customer Service

The customer experience has become pivotal in the shipping industry. Customers expect to receive their orders correctly and quickly. Cloud TMS solutions have helped logistics companies meet these expectations because of the increased visibility throughout the supply chain. Customers are able to track their orders in real time as well as receive updates on the delivery process. This type of transparency has helped logistics companies to provide the best in customer service.

Verizeal for Cloud-Based TMS

Cloud computing is revolutionizing the logistics industry. The use of a cloud-based TMS increases efficiency, improves visibility, and reduces costs by automating processes. As the supply chain changes, cloud-based TMS will become more important to operations. Verizeal offers a comprehensive cloud-based TMS that runs more efficiently than in-house systems. Our team of logistics experts make sure that our customers get the most from their solutions.

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