Rapid ROI, Scalability and Sustainability in Transportation

Why implementing a TMS will cause a step change for your business

Many industries find themselves in a state of flux, where uncertainty and unpredictability are the norm. This situation is unlikely to change, especially when it comes to transportation management. Margins are tight, customers are demanding and competition is fierce. In this context the phrase ‘do more with less’ is beginning to sound more and more familiar to logistics managers. 

The upside to the current transportation environment is that scalable, cost-effective technology has caught up to the demands of the industry. This readily available technology reduces inefficiencies, collects and analyses data for better decisions, enables end-to-end collaboration between all parties and provides full visibility. We’re talking about Transport Management Systems (TMS).

What about the ROI?

A market-leading TMS offers businesses a sure-fire way to rapidly reduce their spend. For example, a study by ARC found TMS adopters saw average freight savings of 8%, of which less than a tenth covered the costs of the TMS itself. The savings in question were a result of better network design, load consolidation, route optimization and improved procurement and freight audit data.

On top of this customer expectations have changed. According to project44, 94% of people who make company purchases expect the same customer satisfaction as for their personal purchases. A key facet of providing that level of service is guaranteeing visibility, something best-in-class TMS’ are more than capable of doing. 

Sustainable transportation 

Finally, the past decade marked a shift in terms of people’s attitudes towards sustainability. Greta Thunberg has come a long way from her initial school strike and now counts 3.8m+ followers on Twitter and lectures world leaders on their lack of environmental initiatives. As attitudes change, more and more people have and will look for ways to minimize their personal and business carbon footprint. 

By limiting the number of empty miles, reusing transportation packaging and enabling better collaboration throughout the supply chain, a TMS can herald a step in the right direction. Customers and businesses want to operate in a greener way and optimizing and digitalizing their transportation processes for minimal costs (in fact, there are often benefits) is low hanging fruit.

For more information, download our free, beginner’s guide to TMS’

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