In part 1 of our blog series, we discussed the challenges that a TMS can solve and the different capabilities covered by the market. In this blog post, we will focus on the benefits of implementing a TMS solution and how it can impact your business for your organization and your supply chain partners.
In a nutshell, some of the most significant transportation management system benefits include greater visibility of the supply chain process, freight cost savings, and operational efficiencies.But let’s be specific:
Alpega’s customers report savings in three main areas after implementing the TMS:
Process and organization costs (4-10%)
Thanks to the digitalization of organizational and administrative tasks, TMS users reduce the time and money spent in organizing their logistics flows.
IT spend reduction (5-15%)
Alpega TMs is a SaaS cloud-based solution, which means that the IT department does not need to put resources to ensure the performance of the tool.
The implementation of the TMS software is quick and agile, responding to the business needs and demands, and the time to value is shorter because there is no significant initial investment in on-site servers or efforts by the technical team(s).
Transportation cost reduction (8-22%)
A TMS contributes to freight cost reductions in several ways. The impact varies for each business, but a TMS can help in achieving in the short term:
- Freight tendering allocation savings through more accurate tender results
- Procurement savings through direct access to carriers and dynamic transport optimization
- Capacity optimization savings: automated order communication- slot scheduling drives down demurrage costs and reduces (un)loading personnel resources
- Freight cost management thanks to more accurate calculations and accessorial claims that result in faster invoice processing
On top of cost savings, a TMs brings other benefits to businesses, including greater visibility of the logistics flows and better execution supported by automated workflows, and data collection to improve decision-making processes.
In the mid-long term, a TMS provides insightful data to support the decision-making process, and can also improve the invoicing and cash-collection times, positively impacting cash flows.
Missed the first part of this blog series? Have a look at part 1, introducing the concept of TMS.
Have some open questions? Have a look at our webinar ‘Why Implement a TMS’ or get in touch to schedule a one-to-one chat with one of our logistics experts.
In part 3 of the series, we will focus on the benefits of a SaaS TMS and why you should start considering it, today!