According to Globe NewsWire, The market size of global Transportation Management Systems (TMS) is forecasted to get market growth from 2020 to 2025, with a CAGR of 14.5%. The size is expected to reach USD 4330.8 million by 2025, which was USD 2524 million in 2019. These figures clearly depict how rapidly every business around the world is adopting transportation management software.
What is a TMS?
A transport management system or software helps businesses to manage, monitor, and optimize the day-to-day activities of their transportation fleet. It also facilitates real-time visibility, improved shipping efficiency and reduced the overall transportation cost of e-commerce, manufacturing, retail, or any other business.
6 Reasons Why You Need a TMS
1. To utilize a vehicle’s capacity to the fullest
To utilize your vehicle’s capacity completely, it is necessary to segregate the consignments correctly and map them with the right vehicle. A transportation management software automatically uses various filters to segregate the orders and then send them to the right vehicle depending on the weight, volume, vehicle’s capacity, delivery location, and other factors. By utilizing a vehicle’s capacity completely, you can ensure more deliveries per vehicle.
2. For efficient route planning and optimization
A TMS is capable of generating efficient routes to avoid traffic congestions, prevent idling of engines, reduce driving time, and increase deliveries per vehicle. The software requires no human intervention as it automatically collects necessary information, including the delivery location of users to decide the routes for multiple vehicles.
3. For dynamic route planning
With businesses providing their customers with various delivery-related options, such as rescheduling the delivery, changing the delivery address, and more, dynamic route planning has become no less than a necessity. The feature is a part of modern transportation management software. Using TMS, businesses can do dynamic route planning whenever a customer changes their delivery address or time after the order is placed. The feature immediately plans and displays the new route to drivers so that they don’t have to make a failed attempt for the delivery. This would not only reduce time but also the cost.
4. To track consignments in real-time
Tracking consignments and drivers in real-time is necessary to know the updated status of the consignments. A TMS not only provides this option to the merchant but also to the customers. They can also track their order in real-time. Doing this not only helps to maintain transparency between the merchant and the customer but also builds a strong reputation for your brand. Moreover, it will also reduce the number of calls to your customer support centre.
5. To improve customer experience
Nowadays, customers expect businesses to offer free deliveries at a lightning-fast speed. Moreover, they also expect services like change delivery time, contact details of the delivery agent, and real-time order tracking. Using a transport management system can fulfil all of them without using any separate software. The software can be integrated smoothly to any business’s ERP irrespective of its size. Providing the same help businesses to get 100% customer satisfaction and deliver an unmatched customer experience.
6. To minimize paperwork and human efforts
A transport management system automates route planning and optimization, dynamic route planning, end-user visibility, and various other services. This automation reduces paperwork as well as minimizes the need for hiring professionals to perform these operations. Apart from this, the automation also ensures that every process is being performed with utmost precision and perfection.
7. To reduce overall transportation cost
All these features of a transportation management system help in reducing overall transportation cost. It also minimizes RTO or returns to order rate. This is one of the biggest reasons why your business should immediately opt for a TMS.
Where to Get a Transportation Management System?
You can get a transportation management system from a reliable company such as Shipsy. Their TMS can be easily integrated into your existing ERP and offers the following advantages:
- Automatic integration with your ERP
- Route planning and optimization
- Market vehicle minimization by efficiently using your own vehicles’ capacity
- Fuel cost reduction
- Real-time trip tracking
- Digitized proof of delivery
- Delivery ETA
- Share delivery feedback
So, now when you know the reasons for getting TMS software for your business, why not get it right away!
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