As a business owner, chances are that you’re constantly shipping out packages to your customers. If so, you know just how costly this process can be. But with the help of transportation management systems, you will not only be able to reduce shipping costs but you’ll also be able to track your packages in real-time, improve your billing process, increase customer service, and establish a constant steady flow of incoming and outgoing inventory. If you are curious to know more about how the systems work and the benefits of using one, keep reading.
- Making Deliveries More Efficient
Using a transportation management system, otherwise known as TMS, can help businesses get their products to their clients in a much faster and more efficient way. This system prevents fewer stops from happening, sends alerts when there’s a delay or an accident, and tracks all packages from the time they leave the warehouse to the time they arrive at the customer’s front door.
With this information, you’re able to ensure the safe delivery of your product as well as keep your client informed and in the loop regarding the delivery of their package.
- Making Your Warehouse More Efficient
It’s safe to say that when things are organized, they tend to run more smoothly. The same goes for your warehouse. With transportation management systems, you can keep a record of all of your orders and even track where they are located within your warehouse. This way, your employees won’t have a difficult time finding where each product is and can ship it out sooner.
Best of all, this makes the entire process more efficient and won’t keep your customers waiting. You will be amazed at the difference it makes in your business to have and keep an organized warehouse.
- Reducing Freight Spend
TMS allows companies to determine the best transportation routes based on specific parameters, batch shipment orders, manage inbound and outbound logistics, and more. Even better, TMS helps businesses reduce expenses using data and analytics. As a result, there are cost savings due to optimizing route planning, getting lower mileage, minimizing the wear and tear on vehicles, and increasing driver productivity. In the end, all of these things end up saving business owners a lot of money just in transportation.
- Increasing Customer Service
Transportation management systems allow you access to information that can ultimately increase your customer satisfaction. For example, you can see the effects that your choices have on the type of carrier you choose to ship your product. When you choose a particular carrier, your orders don’t get there 100% of the time and you have to get involved. But when you choose another carrier for whatever reason, you find that they deliver your packages on time every single time.
With this information, you now know to choose the second carrier because they are simply better at getting your packages to customers on time. In turn, your customers are beyond satisfied with this service.
- Improving Your Billing Process
Aside from letting you track all of your packages in real-time, a TMS can also help with electronic invoicing, auditing, and processing. The moment that you receive an invoice, a TMS can then compare it to its original shipment rate. If everything looks good, the TMS approves the payment and then triggers a customer bill. As a result, the entire accounting process is simplified and reduces stress on your accounting staff, which also gives them more time to focus on other aspects of the business.
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