10 Tips to Enhance the Value of Your Transportation Management System
A transportation management system (TMS) provides the foundation for transportation digitalization, but no single solution meets all the requirements of a typical transportation network. This has led to the development of microservices and technology solutions that integrate with the TMS to extend its value and make it easier to tailor transportation technology to an organization’s specific requirements.
At DHL Supply Chain, our technology strategy is to augment our core TMS with complementary technologies that add the most value. Here are 10 ways to get the most value out of your TMS.
By Mihaela Isac, Senior Director, IT Transportation Solutions, DHL Supply Chain and Jason Gillespie, Senior Director, Continuous Improvement and Innovation, DHL Supply Chain
1. Know the Limitations. Today’s TMS platforms are either very good at managing flows through third-party carriers or managing dedicated fleets. Plus, the more data-intensive supplemental tasks the TMS is performing, the less effective it may be at its primary purpose.
2. Optimize Order Management. For inbound flows, a supplemental order management system can streamline the order entry process and can reduce manual steps and additional discussions via email or phone.
3. Close Gaps in Visibility. A track-and-trace microservice leverages current carrier integrations to build a scalable and rapidly deployable solution that provides full visibility into each shipment. Self-customized alert notifications tell you what you need to know, when you need to know it.
4. Digitize Document Management. Use a microservice that offloads the management of the digital documents associated with shipments. This can be achieved via digitizing paper documents via scan or mobile capture, or through full end-to-end digital documentations (eBOL).
5. Replace Spreadsheets. Cloud-based business intelligence solutions replace the spreadsheets and slide decks traditionally used to monitor and manage carrier and 3PL performance, providing continuous access to up-to-date performance data.
6. Find Hidden Savings. Transport network optimization tools apply sophisticated algorithms to large volumes of historical transportation data to quickly identify opportunities to significantly reduce transportation costs.
7. Adapt to Change. These new optimization tools also enable shippers to quickly evaluate their existing transportation solutions against current needs.
8. Use a Dedicated Solution for Dedicated Fleets. A TMS optimized for dedicated fleet management can work with the primary TMS to deliver more sophisticated route planning and driver management capabilities . You’ll also gain insight into when, where, and how many assets are really required to meet customer needs.
9. Minimize Empty Miles. New approaches are now available that combine sophisticated algorithms with the expertise of transportation specialists to dynamically match unused capacity in your dedicated fleet with available loads in close proximity to the capacity.
10. Remove Complexity. Transportation technology delivers value but it also adds complexity. Not every organization has the resources and expertise to manage this complexity. A technology-savvy 3PL, such as DHL Supply Chain, can insulate shippers from complexity while enabling them to realize the full value of transportation technology.
