Seven Reasons to Use a Cloud-Based Transportation Management System
The logistics world is changing, and it is changing rapidly. In fact, we’re in the midst of a global shipping crisis. Online merchants have encountered regular disturbances in the transport and logistics sector in the past few years because of several factors.
One of the main reasons for the crisis is the boom in internet usage and online shopping during the onset of the COVID-19 pandemic. However, paradoxically, the lockdown measures disrupted the flow of movement of shipments, causing delays and port congestion.
Because of all these disruptions in shipment and logistics, customer complaints about shipment delays are inevitable. If you’ve experienced this, we know how frustrating it is, especially since these factors are out of your control.
Customers don’t easily understand uncontrollable delays, and while you could only depend on your customer service representatives to do the crisis management for you, or worse, shell out additional business expenses for freebies and vouchers, there’s another way to minimize customer dissatisfaction.
Transport Management System
A transportation management system is a software program used to organize, carry out, and optimize the movement of products. It assists in maintaining control over your supply chains through visibility and transparency. While you can do nothing about political and economic restrictions, and logistical issues, new technological solutions allow you to build a more resilient logistics chain.
Many logistics managers still rely on older transportation management systems (TMSs). While there’s nothing wrong with that, they miss out on many possibilities. Traditional TMS software can only run on a single computer or shared internal network. Visibility in the movement of logistics is very limited.
Investing in Cloud-based TMS solutions boosts productivity in your management system. These cutting-edge TMS solutions can be accessed almost anywhere on any device. They are the best tool for fast and efficient order fulfillment, especially for complex transportation businesses.
Seven Benefits of Using a Cloud-based Transportation Management System
eCommerce companies may improve transportation operations by streamlining procedures, cutting expenses, and optimizing their supply chain with a TMS.
Many processes, including carrier selection, route optimization, and shipment tracking, can be automated by TMS, saving time and money. Additionally, a TMS offers helpful information and insights to make more informed decisions around logistics and transportation.
A cloud-based TMS lets you and your customers see where shipments pass in real-time. Nowadays, customers demand complete information about their packages, especially if they’re very excited about it. Visibility lets you also reduce the need for your customers to inquire about their orders. That way, you won’t need additional customer service representatives.
It can also help you track drivers in real-time. This information makes it simple to compute the time spent on each route, creating an efficient and successful route plan for your order fulfillment process.
Load and Route Optimization
A TMS lets you view and utilize all your assets on a single platform if you run your fleet. You can assign drivers and equipment and manage dispatch and driver compensation. You may also be free to manage fuel usage and monitor environmental impact. Automated notifications keep you up to date on vehicle inspections and maintenance tasks. More sophisticated TMS even allow remote operation of delivery trucks.
Improved Customer Service
Cloud-based TMS systems can track real-time deliveries. You can email or SMS clients, advising them their purchase has left the warehouse and when it’ll arrive at their specified address. With this degree of customer care, expect loyalty from your clients.
More Efficient Billing Process
Processing, auditing, and billing of deliveries can all be done electronically with a TMS. A TMS can balance a received invoice with the rate of the initial shipment. It can also automatically approve payment and send a customer bill. As a result, accounting tasks are simplified, and your accounting team can concentrate on more crucial issues.
Greater Warehouse Efficiency
One of the best benefits of using a cloud-based TMS is that it is integrative. You can link your TMS to your warehouse inventory system to monitor where orders are in the distribution center, their progress, and their arrival. All these software interconnect to ensure quick and effective delivery of goods.
Better Business Insights
Cloud-based TMS provides analytical reports based on the recorded history of logistics. Custom reports can also be made to examine topics like rate inconsistencies or on-time service performance. You can use all the data reported to improve your freight routes and delivery systems.
Because a cloud-based TMS optimizes all the logistical-related processes in your business, you also reduce your expenses. As mentioned earlier, it can minimize customer inquiries and demands because customers know the whereabouts of their parcels. That leads to hiring fewer representatives and the need to compensate customers.
Data-driven analytics also lets you optimize logistical routes and predict uncertainties (e.g., knowing which areas are prone to traffic or delays or are most affected by landslides or rain, etc.).
You cannot control everything when it comes to logistics. Many online shops have limited liabilities regarding logistics, especially after turning them over to partner couriers that offer insurance. However, you are still responsible for updating your customers about their orders. It’s one of the demands of the whole order fulfillment process and after-sales. Thus, you would need a reliable cloud-based transportation management system.
Aratum grows your business by helping you build a more intelligent supply chain. We offer fleet management and transportation planning to deliver your products to customers faster and more efficiently. Book a demo today and discover our complete suite of eCommerce solutions.
*Stock image was sourced from Unsplash