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How to improve your Transport Management System performance

For best in class transport performance, use of a state-of-the art integrated Transport Management System (TMS) powered by high quality data is crucial to be able to realise transport costs, service quality, agility and sustainability objectives. Often shippers and logistic service providers don’t make use of all the capabilities of their TMS and/or the transport performance is not meeting objectives because of TMS issues. How to optimise the use of such a TMS to realise the related benefits?



Extend/optimise TM(S) scope

When a TMS is implemented, this is often done in the area where the biggest ROI is expected and the TM organisation is most eager to implement the new TMS. Additional benefits can be realised when the same TMS is also implemented in other divisions/business units/geographies or by including the management of additional flows (e.g. inbound, intra-facility, replenishment, outbound and/or reverse) or transport modes in the TMS scope.


Assess TM(S) improvement opportunities and benefits

For the extended/optimised TM(S) scope, identify the transport management improvement opportunities and related TMS support. This is done for the end-to-end TM processes: network design, tactical planning, procurement & provider management, order management, planning & booking, execution management, freight audit & pay and performance management. The main benefits regarding cost reduction, service quality improvement, working capital reduction and, nowadays very important, agility and sustainability contribution are assessed.


Optimise use TMS functionality

Determine how the transport management improvement opportunities can be supported by the current TMS. Either by making better use of core functionality already included in the current system but not configured or used yet or implementation of additional modules or tools like fleet management, parcel/pallet configuration, load design, slot planning, claims handling or carbon footprint calculations.


Optimise TMS integration 

Another important optimisation area is the integration with internal systems and external parties like material suppliers, customers and subcontractors. ERP, WMS/MES and GTM interfaces will support the communication on transport orders and shipments in various ways. A Purchase Order Management module or system improves a PO based communication on transport ordering and execution with material suppliers. And, web portals, EDI/API interfaces and visibility platforms will improve the communication with customers and carriers.


Optimise TMS support organisation

Last but not least, the support organisation will play an important role in identification and implementation of TMS improvement opportunities. For that reason, the capabilities and capacity of the process/application owners, IT department, and TMS provider need to be assessed and when need improved to drive and support the optimisation of the use of a TMS.

 

More information

This knowledge platform provides more information on transport management best practices and improvement opportunities including an overview of transport management systems.


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