The Digitization of Transport flows through TMS
Embracing Digital transformation in Transportation
In the era of digitalization, various industries have undergone significant disruptions, and the transportation sector is no exception. Transport companies are facing the challenge of meeting consumer expectations for swift, dependable, and personalized services while also striving to enhance overall efficiency.
A study by McKinsey in 2021 revealed that transportation businesses that integrated digital technologies witnessed a notable 3 to 5% surge in productivity along with a 2 to 3% reduction in costs.
The fusion of Transport and Technology
How and Why?
Digitalization has enabled transport companies to optimize their logistics operations through the use of technologies such as GPS, IoT sensors, artificial intelligence, blockchain and more.
These technologies enable better route planning, improved the traceability of goods, reduced waiting times and limit transport costs.
Furthermore, transport industry now has its own information system, known as TMS (Transport Management Systems), which will be the subject of our article.
Unveiling the TMS: Your Logistics Orchestrator
Demystifying the TMS?
Transport Management Systems (TMS) stand as comprehensive software solutions that empower companies to oversee their entire spectrum of transport operations. By digitally transforming transport flows, TMS simplifies and refines logistical processes while furnishing heightened transparency into the transport of goods.
TMS : Features and Advantages
The TMS plays a crucial role throughout the transport process, from order management to data collection, tracking and planning. A recent study conducted by Logistics Management and Supply Chain Management Review on the use of TMS in the logistics industry revealed that the main reasons for using a TMS are to improve shipment visibility (72%), reducing transport costs (69%) and enhancing customer satisfaction (63%).
Here’s how TMS can help at every stage:
- Order Management:
TMS enables transport companies to manage incoming orders efficiently by integrating them directly into the system, determining the freight to be transported, delivery times, customer requirements, capacity constraints and resource availability to optimize shipment planning.
- Route Crafting:
By determining the routes to be taken, TMSs can optimize vehicle itineraries, taking into account factors such as distance, travel time, traffic, road restrictions and drivers’ driving and rest times. Route optimization helps reduce transport costs and improve delivery times.
- Real-time monitoring:
TMS offers a real-time window into transport events. This allows transport companies to react quickly to changes, such as delays, delivery problems or last-minute requests.
- Inventory oversight:
TMS can help manage inventory by ensuring efficient coordination between shipments and stock levels. Transport companies can thus ensure that products are available at the right time and in the right place, reducing delivery times and maximizing customer satisfaction.
- KPI Tracking and Reporting:
TMS systems enable the performance of transport operations to be measured using predefined KPIs (Key Performance Indicators). These indicators allow real-time performance monitoring and identification of improvement opportunities. TMSs can also generate customized reports to present key information such as costs, performance, resource utilization and service quality.
The advantages of digitizing transport flows through TMS (Transportation Management Systems) are numerous. It allows for a better customer experience by providing real-time visibility on shipment tracking and enabling smoother information exchanges between the various stakeholders in the logistics chain, thus meeting customer demands and regulatory requirements for safety and compliance.
Finally, it allows the company to reduce its carbon footprint by optimizing routes and minimizing waiting times, which in turn reduces CO2 emissions and contributes to the transition towards more sustainable modes of transport.
To succeed, transport companies must be ready to adopt new technologies, change their way of working, and focus on their customers’ needs to offer innovative and superior quality solutions.
Achieving triumph in the transportation Arena with ADDINN Group
Leveraging our extensive proficiency in both passenger and freight transportation, we offer tailored development of Transport Management Solutions (TMS) and mobile applications. This endeavor enhances operational efficiency, optimizes resource allocation, and curtails costs.
Connect with us today to dive deeper into our solutions and embark on an empowered journey toward excellence.
