Managed transportation continues to be the top issue we discuss with shippers as they seek to improve their supply chain efficiency against the backdrop of increasing freight costs and limited truck capacity in addition to changing and difficult customer demands.
When we move through the topic regarding Managed TMS we often are asked about what we believe are the top Transportation Management Software (TMS) platform available in the market.
To assist buyers during their TMS choice process of updating their supply chain technology we're trying to be as clear and as upfront as we can on the different TMS software options, so that they can determine which system is the most suitable for them , since there is no one size fits all solution to the question.
So, let's review the list, and then conduct a brief review of how to create an requirements document.
What is an Transportation Management Software?
The transportation management software (TMS) is an online logistics platform that utilizes technology to assist businesses in planning to execute, manage, and optimize the movement of goods in and out and ensuring that the shipment is in compliance and that the proper documentation is in place. This type of system is usually an element of an overall system for managing supply chain Management(SCM) method.
Who uses a TMS?
Transportation management Software is typically utilized by companies who need to transport, ship and receive items regularly and include:
Companies that provide logistics-related services, including Fourth-party and third-party logistic (3PL or 4PL) companies as well as Logistics service suppliers (LSPs)
Companies in almost every industry including construction, through life science, utilize an automated transportation management system. The main users are those who invest more than $100 million each year on freight. However, the advent in cloud-based TMS solutions makes it easier for smaller companies to reap the advantages of integrating the TMS system into the supply chain.
The advantages of TMS are numerous. TMS
- The TMS, and modern transportation management generally--can bring many advantages to companies. One of the most significant advantages are:
- Cost reduction for the company as well as the customer.
- Facilitation of Supply Chain processes throughout geographical regions modes, carriers, and geographies
- Automatization of business operations to ensure quicker and more precise billing and documenting
- Improved visibility and security, in particular when traveling
- Less manual work results in fewer delays and shorter delivery times
- The capability to track and track freight both locally and globally through one platform
- More efficient compliance with export and import regulations reduces penalties and delays in shipment
- New insights for business as better reporting results in faster actions and improvement of processes
- Enhancements in customer service and satisfaction through real-time updates and shorter delays to delivery
- The capacity to expand the company by fulfilling and exceeding the needs of customers for prompt, timely deliveries
The Top 10 Transportation Management Software (TMS)
- Cloud Logistics
- Blue Yonder
- Cloud-based service provider of end-to-end TTL, LTL, and parcel capabilities for Omnichannel shippers, e-commerce businesses 3PLs, freight brokers. The software handles order management and freight planning, as well as carrier rating, execution and settlement on a single screen, allowing for easier handling of complicated shipping. The software is utilized across North America and internationally with an extremely low TCO.
- Summary: Provides an independent TMS with controlled TM services. It has robust capabilities, with international and domestic capabilities. There are other BluJay Supply Chain Execution software that can be integrated to the TMS. Customers tend to be smaller shippers and 3PL's however, it is able to for larger shippers.
- Another rising star in the business. Mainly focused on domestic truckloads. International ocean, rail and air aren't available currently, but they are continuing to enhance their utility. The total price of owning (TCO) is generally low.
- Summary: Provides an independent TMS with controlled TM services. Strong capabilities that include international and domestic capabilities for shippers as well as 3PL's offering all types of freight. TCO is competitive.
- Summary: Largest independent SCM suite vendor. Solid platform for complex large shippers and third-party logistics firms. Manages the global requirements of supply chain. Cost of ownership (TCO) is very high as compared with different TMS platforms.
- The summary: TMS was built on Salesforce platform. It has a large customer base and several smaller shippers as a result of its freemium TMS service. Primarily , a TMS software firm, however, it does offer managed TM services through the TMS platform. It is primarily US focused, with both capabilities for international and domestic markets. Continue to develop its strengths. TCO is highly competitive.
- An impressive history stretching back nearly three decades. TMS is available from the box, and includes integrations to Manhattan supply chain applications. Manhattan supply chain application. More of it is offered as an addition in conjunction with their WMS. TCO is quite high.
- Summary: The customer base is mostly North American oriented. An extensive platform that is able to support both international and domestic shipping for companies of any size. It continues to expand its capabilities. The cost of ownership is affordable. Buyers should take note of this options and use it to their advantage over custom-coded. TMS can be used by 3PL brokers, shippers, and private fleet businesses.
- The summary: Robust platform for large complex shippers and third-party logistics companies, but also it is advancing into smaller 3PL's and shippers. It handles global supply chain requirements extremely effectively. TCO is very high compared to other TMS platforms.
- Abstract: Robust platform that has integration with its ERP and SCM software. Robust platform designed for large and sophisticated shippers, 3PL's and other 3PL's. It can handle global supply chain requirements. It is a partner with Descartes for a portion of its capabilities through carrier communications. TCO is higher than the different TMS platforms.
The future of TMS
Customers are always demanding more Not just for on-time delivery, but also for two-day or even same-day delivery. This is due to real-time updates throughout the entire process of shipping. Global trade regulations that are constantly changing have also forced supply chains to develop new ways to stay on top of trends, typically through investing in a transportation management system.
Transportation management systems have to be stronger and more feature-rich, allowing more rapid responses to consumers as well as more comprehensive information for companies. Machine learning allows TMSs to become more sophisticated giving better advice and more accurate forecasts.
Businesses can integrate their global trade and transport management systems with new technologies to improve their visibility and provide superior customer service. Some of the latest technologies currently available include:
IoT fleet monitoring
- Internet of things (IoT) sensors and devices enable real-time monitoring of fleets and include in-transit visibility of the driving situations, route, as well as assets. Businesses can reduce their costs for maintenance and fuel, in addition to reducing the time it takes to complete their tasks and increase safety of drivers.
- Digital assistants are sometimes referred to as chatbots. They offer instant and conversational responses to shipping information, resulting in greater satisfaction of customers.
Machine learning and adaptive intelligence
- By applying machine learning to historical data and trends, transportation management systems are able to predict transit time more accurately, plan capacity, identify at-risk shipments (such as goods that are about to expire and time- or temperature-sensitive products), and much more. The enhanced artificial intelligence will allow your TMS to offer more accurate and well-informed recommendations including alternative transportation routes during peak traffic time.
- Blockchains are being used to establish complex connections between customers, shippers and transporters. Applications like Intelligent Track and Trace can increase transparency and traceability throughout your supply chain. However, they nevertheless, they guarantee accurate and secure data.
Management of the cold chain
- Another option for blockchain in the transportation management system can be cold chain control that is ideal when various temperatures are required to be maintained at various points throughout the chain of supply. For example, perishable and products and materials that are sensitive to temperature could require keeping at a lower temperature in the truck, but at a slightly higher temperature in store shelves. By utilizing Cold Chain Management, temperatures is monitored throughout the supply chain, and real-time data provided to the company as well as the regulators in the point of the source.
Hopefully, you found the above information to be helpful. We’d love to be a part of your transportation management software (TMS) selection and/or managed transportation services discussions, so please keep us in mind.