Larger product-based business organizations require a reliable system that is able to manage the organization’s resources. A Transportation Management System will be the final link in the supply chain, taking the finished goods picked, packed and ready to rate and ship from the Warehouse Management System, finding the best way to bring those goods to the customer’s hands. The management will be able to monitor the movement of materials and products from one place to another, through their own fleet or through a logistics carrier.
What is a Transportation Management System (TMS)
This is a software program that is designed to help business organizations manage their logistics supply chains. This could include management of the shipping units, shipment scheduling, freight auditing, processing of damages and losses among others. The TMS has a number of functions and advantages when it comes to the management of logistics in the organization. It aids the shippers in planning for the load shipment. In it also is responsible for finding the most optimized routes to transport the shipment. As a result you will be able to save costs on both efficiencies and terms with your carriers.
With the TMS, shippers will be able to determine the right tools to use in selecting carriers through carrier communication and management of execution. As a result they will be able to compute for the cost of shipping. In addition to that you will get essential tips and ideas on how to improve your business, hence effective.
Apart from the management of shipments, the TMS can be utilized finding the areas in which your transportation vehicles can be used to determine areas in which the vehicles are most useful and save on the time and money. This is achieved through the calculation of the shortest route for vehicles to take. As a result it will save on the amount of fuel the vehicles will use for transportation. It is essential for fleet management in the transportation department.
Does FedEx or UPS fit into the TMS?
In order to answer this question, there is the need to look at each one of them in detail and their role in shipping of goods from one location to another. The costs of shipping goods have been a major headache for businesses and merchants. The introduction of UPS and FedEx carriers has enabled the merchants to calculate effectively the various shipping costs and allow, merchants and businesses seek to reduce shipping charges for their goods.
The rates that come as a result of the use of the UPS and the FedEx carriers are important for the merchants to have a look into. This is due to their variations in size and weight. Merchants should go for the lowest rates to save on the costs of shipping the goods. However, these carriers also vary in terms of the packaging materials and the speed with which you will receive customers receive their goods. The TMS will help you to determine which carrier is the best to use in the transportation of your goods. For urgent goods you should use the carrier that is fastest, despite the cost. On the other hand the TMS will help you to find the best carrier for your shipment in terms of costs.
It will be able to evaluate and calculate the costs, speed, packaging and the locations the carriers offer their services to get a breakdown of each and every one of the carriers. This will help to save on the time and money, and help your business be more effective.
Shipping and Rating from the WMS
The Warehouse Management System (WMS) is software used in the business organizations to control the storage and movement of goods and materials from and in the warehouse. It is an improved system that involves a large building where goods are loaded and off loaded and the tracking system that records the incoming goods and the outgoing goods from the warehouse.
The WMS is also essential when it comes to shipping and rating of the shipments. It is able to send detailed bills of lading after the goods are packed, before the shipment arrives. In addition to that it generates a list of goods packed and the invoices for the merchants to reconcile with the shipment once it arrives. Where necessary, it is able to send instructions on how to assemble the equipment received. The WMS is able to send advanced shipment notifications after the packing of the goods to notify of pending deliveries to other facilities. It is thus able to calculate the shipping costs and rates of the shipment to a particular destination with the help of the TMS.
How does the TMS tie into the ERP system?
The Enterprise Resource planning (ERP) is a type of system that is used in organizations for the purpose of collecting, organizing and the storage of vital data for the business organization. In short, this type of system makes it easier to plan the resources of the organization. In that case, it is used together with other supply chain systems like the MRP, WMS, and the TMS for efficiency. The use of ERP tied to the other departments and systems, means that it can be tied with the TMS to make it a complete success but managing costs and resources.