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5 Key Benefits of Transportation Management Systems

Aug 26, 2018

It used to be that only the largest enterprises could justify the cost and effort of implementing a TMS in their logistics operations. Today, with so many cost effective options, many SMBs are using them too. With organizations of all sizes looking for ways to contain costs and streamline operations, this isn’t surprising. If you’re still handling shipping processes manually with an excel spreadsheet, email, and more, you may be wondering what’s so great about a TMS?

TMS Benefits - American Group.jpgBenefits of Using a TMS

Any company that is shipping freight on a routine basis really should consider using a TMS in their business. Here are 5 key benefits of using such a system to manage your logistics:

Cost Control

A Transportation Management System facilitates rate shopping as well as shipping mode and optional services selection. The ability to see the financial impact prior to shipment means less surprises at the time of invoicing. It also makes budgeting and cost containment easier.

Improved Customer Service

Tracking all shipments in one place makes it easy to provide consignees with order updates and delivery estimates with just a few clicks. The ability to see which carriers are consistently meeting delivery estimates, versus those missing them, allows for the selection of the most reliable ones to ensure customer satisfaction. 

Warehouse efficiency 

Shipment accuracy increases with a TMS since less information must be manually entered. This is especially true since addresses repeatedly used are saved in the system. The platform means less paperwork, easy scheduling of pick-ups and easier BOL creation.

Inventory management

The ability to track shipments includes tracking incoming orders as well. This enables you to more easily maintain inventory levels with less overages and shortages. It helps you know just when to restock based on transit time estimates.

Easy Invoice Tracking, Auditing, and Processing 

A TMS allows for electronic invoicing, tracking, auditing, and processing. This simplifies accounting processes and reduces the costs associated with completing these tasks. It also means you won’t need to increase your accounting staff as quickly as your business grows. 

With all these benefits, isn’t it time you considered implementing a TMS to streamline your logistics process? Check out our solution. It’s free for clients to use and might be the perfect fit! Contact American Group to learn more about our customer portal for managing your logistics.

American Group is a 3PL with decades of experience guiding businesses through the selection, preparation, and shipping of their freight. Contact us for assistance with your next shipment by phone at 866-553-6608 or by email at Info@ShipAG.com. We’re here to make Shipping.Simplified®.

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