Transportation Management System and its Benefits

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Before knowing the advantages of the Transportation Management System (TMS), it is better to have understanding about it. TMS is a subdivision of Supply Chain Management related to transportation logistics. It manages four important areas of transportation logistics; they are planning & decision making, transportation execution, transport follow-up, and measurement. Now let us briefly look into the advantages of utilizing TMS.
The first benefit of the TMS is it helps to transport freight from one destination to another reliably, efficiently and cost-effectively. It helps to the companies to save money on their freight process. Shippers, who are using Transportation Management System, can make their freight easily and quickly, and save huge time and energy in handling the transportation management. Let’s briefly see the other areas, where TMS can be very beneficial.
Using TMS can enhance the customer service when used with analytics and reporting. With analytics and reporting, a shipping company can estimate the cost, time of transit and other important data. This helps logistics company to provide prompt freight at the lowest cost possible to the customers.
When used with the warehouse management system, TMS can simply boost the warehouse efficiency. That’s because, when you use TMS, the errors in the data entry is minimized and hence allowing you to focus on other things.
With effective use of TMS, a company can improve cash flow as it can detect the wrong billing or duplicate payments. The benefits of using TMS does not end with this. There are many more, and you know them from an expert.

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How to cut down the Freight Cost with Fright Classification


If you are a product distributor or product manufacturer, then you would be utilizing many modes of transportation to transfer your freight from one point to another point such LTL shipping. If you have used LTL shipping, then you would know difficult to find a good carrier, competitive price, best time, etc. As LTL shipping service is highly volatile, it is quite difficult for a company to get the best deal. There are many ways to effectively reduce the cost of LTL freight and one of the important ways in determining the freight classification. The National Motor Freight Classification, or shortly called as NMFC does the classification, which has to be followed by the shippers.
By knowing the classification, shippers can find out the ways to cut down the cost involved in freight. Now let us see how the classification of freight can impact the shippers. The classification is based on the kind of the goods and the total weight. Each kind of goods comes under certain classification, and each classification has some set of price. By knowing the freight classes, you would know the opportunities to cut down the cost while effectively minimizing the risks. Another important measure that can help to cut down the freight cost is the auditing the freight bills. By proper auditing, you would know where you have made an excessive expenditure and other areas, where you can cut down the cost. Another good way to cut down the freight cost is using the service of the 3rd party logistics service.

Read also Transportation Management System and its Benefits

Some of the Important Terms on Transportation and Logistics


If you are very new to transportation and logistics, then you would like to know some of the important terms associated used in this industry. By knowing these terms, it would be quite easy to understand and learn the industry. You would be already knowing the fact that transportation is the biggest in the world and there lot of complex terms used. Now let’s look into glossary for some of the important terms.
Accessorial Charge: It is the amount that is charged for additional, special and supplemental charges provided by the shipper.
Carrier – is a company or service provider, which provides transportation service from one point to another point.
Commodity – It is nothing but any article, such as manufactured foods, raw material or grown products.
Consignee – A location or person, to whom the freight has to be delivered through any means such as road, air, water.
Container or shipping container – It is a big rectangular box that is used to store and transport the freight through highway, ship or railway. The shipping container can be classified into international container and shipping container.
Coil Racks – These are pre-manufactured cradles made of steel or wood that prevents the rolled coils slipping from the container and falling over the trailer.
Dedicated truck- It refers to freight that is transported from one point to another for only a single customer.
D.O.T number – This is nothing but a license number that is provided to the carriers by the Department of Transportation.
These are some of the important terms and their glossary. Hope you would have benefitted lot.

Read also How to cut down the Freight Cost with Fright Classification

Hiring a Good Distribution Center

The invention of e-commerce has increased the demand for transportation and logistics. Nowadays, e-commerce customers want their ordered goods to get delivered to their place quickly, and to add to that many e-commerce businesses are promising same-day-delivery, which further increased the demand for logistics and transportation. Nowadays, most e-commerce companies are utilizing 3PL (third party logistics) company as it offers more benefit. If you are a new business, who is looking for some tips and ideas for hiring a 3PL service provider, you can simply read this article further.
Before hiring a 3PL service, you need to make sure whether the company would be able to deliver your goods to your customers effectively time. This depends on their distribution center, shipping zones. Before hiring, know their shipping zones and this would help you know whether the prospective 3PL service provider would be able to know whether the service provider has the potential to reach out your customers.
Check the track record of the 3PL company and know their success rate in percentage. See, whether they have delivered the products on time and see whether they have any black marks. Learning the past performances of a 3PL company helps to refine your decision making with respect to hiring a 3PL service. There are two important metrics that you should know when analyzing about the potential service provider. Dock-to-stock is one of the important metrics that can be used to analyze the service provider. With smaller dock-to-stock time, a company would be able to fulfill the orders quickly.

Read also Some of the Important Terms on Transportation and Logistics