The impact of transport management systems.

A Transport Management System (TMS) is a software tool designed to optimize the planning, execution, and tracking of the physical movement of goods. It is a key component of supply chain management and logistics operations, offering a range of features that help organizations streamline their transportation processes, reduce costs, and improve efficiency.

Understanding the core functionality of transport management systems

The core functionalities of a Transport Management System (TMS) are designed to streamline and optimize the various aspects of transportation logistics. Here are the key features typically found in a TMS:

1. Route Optimization
   1. Route Planning: Determines the most efficient routes for shipments, considering factors like distance, fuel costs, traffic conditions, and delivery windows.
   2. Dynamic Routing: Allows for adjustments to routes in real-time based on current conditions.
      
      
2. Carrier Management
   1. Carrier Selection: Helps choose the best carrier for each shipment based on cost, service level, and reliability.
   2. Contract and Rate Management: Manages contracts with carriers and tracks negotiated rates.
      
      
3. Freight Management
   1. Load Optimization: Maximizes space utilization in trucks or containers, reducing the number of trips and costs.
   2. Freight Consolidation: Combines multiple smaller shipments into a single load to reduce shipping costs.
      
      
4. Shipping Order Management
   1. Order Entry (EDI or Mangual) and Processing: Manages the entry and processing of transportation orders.
   2. Shipment Execution: Coordinates the execution of shipments, including pick-up and delivery scheduling.
      
      
5. Tracking and Visibility
   1. Real-Time Tracking: Provides real-time visibility into the location and status of shipments.
   2. Status Updates: Sends automated notifications and alerts about shipment status, delays, and estimated arrival times.
      
      
6. Documentation and Compliance
   1. Document Generation: Automates the creation of necessary shipping documents such as bills of lading, invoices, and customs paperwork.
   2. Regulatory Compliance: Ensures compliance with transportation regulations and international shipping laws.
      
      
7. Analytics and Reporting
   1. Performance Metrics: Tracks key performance indicators (KPIs) such as on-time delivery rates, transportation costs, and carrier performance.
   2. Custom Reporting: Provides tools to generate custom reports for insights and strategic decision-making.
      
      
8. Financial Management    
   1. Freight Audit and Payment: Automates the auditing of freight bills and the processing of payments.
   2. Cost Allocation: Assigns transportation costs to specific business units or customers.
      
      
9. Customer Communication and Service
   1. Customer Portal: Provides customers with a portal to track their shipments and access relevant information.
   2. Communication Tools: Facilitates communication with customers regarding shipment status and other inquiries.
      
      
10. Integration and Scalability
    1. System Integration: Integrates with other systems such as Enterprise Resource Planning (ERP), Warehouse Management Systems (WMS), and Customer Relationship Management (CRM).
    2. Scalability: Capable of handling increased volumes and complexities as the business grows.

The role of MercuryGate in transforming transport management strategies

MercuryGate is a software company and built their unique Software as a Service (SaaS) platform. A multi-tenant hosted transport management system for shippers, logistics service providers and brokers. The main advantage of the MercuryGate TMS is that it supports all geographies and modes and modes of transport. The MercuryGate transport management system offers a comprehensive tool for multimodal optimization, claims management, final mile solutions, global sourcing, and more.

Implementing a transportation management system

Many companies only realize they need a TMS when something goes wrong. They find themselves lacking an overview and unaware of what is happening, leading to logistical issues like goods arriving late or damaged. It is often beneficial for companies to outsource the implementation and management of a TMS. This because they may lack the in-house expertise, system licenses, or the organizational size to invest in it. A specialized partner can take over this work, from managing the truck operations to overseeing the entire process.

Maximizing efficiency: key features of a modern TMS system

A powerful TMS system ensures that operations, finance, procurement, and sales can handle processes in a scalable way. Previously, everything was done via email, resulting in lost or incomplete information. In a TMS, everything is logically organized and always accessible. Invoices are compared within the system without requiring anyone from the finance department to search for information. This way, fewer people are needed to work more efficiently, leading to increased profits.

The Caliber.global transport management system

At Caliber.global, we use the MercuryGate TMS solution, handling 30,000 shipments annually to full satisfaction. Our TMS experts find the optimal route for your freight at the best price and in the shortest time. Since we are not dependent on individual carriers, we have the freedom to always choose the best option for our customers. Furthermore, our TMS expertise is only part of our proposition – we gladly optimize your entire supply chain. As we look into the structure of your supply chain, we analyze every aspect of your way of working. Our TMS is merely one of the many valuable managed services we provide in optimizing business processes.