There is a lot to keep track of when it comes to the fulfillment and warehousing of goods. Supply chains have become more involved with more steps and people added to the process. Companies often find it challenging to manage these operations efficiently manually. A TMS is a way to automate some of the more time-consuming tasks in the warehouse. A TMS is a complex software solution that handles various functions of the warehousing and fulfillment sectors from route planning to real-time tracking.
What is a TMS?
A Transportation Management System (TMS) is a software program that is used to coordinate transportation and logistics. Because it organizes and centralizes transportation data, companies are able to do the following:
- Forecast and plan shipping requirements
- Manage carriers and optimize routes
- Track shipments
- Handle payment procedures
- Report network key performance indicators
Shippers that use a TMS provide better visibility to their supply chain operations as they are able to monitor goods throughout their lifecycle. A TMS easily integrates with other supply chain management systems for better control over transportation activities.
Why is a TMS Necessary for Warehousing and Fulfillment Companies?
A TMS is one of the most effective tools for understanding the supply chain because it gathers important information about the network and its visibility. For warehouses, the TMS can be integrated with the Warehouse Management System (WMS) which allows for more efficient planning of the activities within the warehouse and beyond. Information like stock levels, fulfillment statuses, and loading dock availability can be combined with other information to optimize warehouse activities. This reduces lead times which results in faster delivery times.
There are certain functions of a TMS that really benefit warehousing and fulfillment such as:
Planning Loads: Companies that ship extensively need to make sure that their load planning makes sense. A TMS makes it easy for shippers to choose the best carriers, plan their routes, and get the best rates given their load criteria. A TMS is able to optimize shipments using complex algorithms, which saves time and money.
Transporting Loads: The routing guide in a TMS gets rid of the need to manually input details about rate acceptance, capacity, and performance. A TMS eliminates the need to sift through data to find the information needed for tendering and booking and automates these processes for less errors and better costs.
Tracking Shipments: Because a TMS gives full visibility at every point in the supply chain, it can gather and consolidate detailed information that tracks the exact movement of goods. For example, the segment of the journey from the warehouse to the final destination can be viewed every step of the way with real-time updates. The complete visibility feature allows companies to take immediate action should any delays or issues arise.
Shipment Management: Shipment consolidation helps to group smaller shipments going to similar destinations, which saves on shipping costs. This means lower fuel usage and emissions. This software also has the ability to manage and negotiate freight rates with carriers. The system ensures that freight billings are within contract rates as well which reduces the chances for over charges.
Document Management: Warehouses and fulfillment centers used to have to keep track of a lot of paperwork. However, the digitalization of documents such as the Bill of Lading (BoL) reduces the need for manual paperwork. The change to this process also ensures compliance with regulatory requirements.
Detailed Reporting and Analytics: There are a lot of steps in the fulfillment process. A TMS system gives detailed reports about the warehouses and offers insights as to delivery performance, transportation costs, and carrier efficiency. This gives performance awareness that can be used for the future. Analytics can show trends with shipments as well as areas of bottlenecks that need to be addressed.
Verizeal for TMS for Warehousing and Fulfillment
Technology has become an integral part of the logistics industry, particularly with the fulfillment and shipping of orders. The implementation of a TMS reduces costs and makes your business more competitive in the long-run by making it more efficient. Businesses are able to save time and resources by automating manual processes with Verizeal’s platform. Our team’s experience in the transportation industry can help establish a TMS that will work with your business’s needs.
