TMS system and its role in the development of logistics business

Logistics is an integral part of any business. Moreover, each cafe or restaurant has its own delivery service, not to mention various online stores that often work with the “last mile”. The logistics business is gaining momentum, and online commerce is also developing rapidly. More and more worthy competitors are appearing on the market and the winner is the one who provides their services to clients better, faster and with better quality. In the case of delivery, speed is what matters. The company that delivers packages on time and promptly always wins. And if customers can still choose a time window for delivery, then they will even recommend this company to their loved ones. To remain a worthy competitor, regularly expand the number of clients and develop, you need to implement modern solutions in your work. For owners of logistics operators and various supply services, such a solution is a TMS system.

What is a TMS system: concept and functions



Transportation management system, or abbreviated TMS system https://uislab.com/products/tms/, is software that helps to efficiently organize the work of the delivery service, distribute responsibilities between existing couriers and monitor the quality of these tasks. Simply put, it is a system that takes over the planning and control of the entire supply chain, from the moment the parcel is collected to the moment it is delivered to the final recipient.

The software allows you to completely abandon routing letters and automate the process of communication with the client; for example, the latter can set time windows when it is convenient for him to wait for the courier. To better understand what the system is, check out the tasks it performs:

• automation of information. All reports and data will be fully automated. The manager or other responsible person will have quick access to data on all orders sorted and ready for dispatch. Information about upcoming shipments, the courier's remaining goods at the end of the working day, and so on. What was previously always written down on paper will now be in a convenient electronic format and will be updated regularly;
• planning. The system will independently plan the best routes, with the help of which the courier will be able to efficiently distribute his time and accomplish much more than usual;
• reorganization of routes. If something does not go according to plan, the system will automatically and very quickly rebuild the route. Previously, such a situation could be considered force majeure, and sometimes the entire day could be lost. With the TMS system this is just a minor hiccup;
• monitoring of all shipments. In real time, it will be possible to monitor where the couriers are now, how many parcels they have left, whether they are being invested within the specified period, whether they are idle, and so on. This option allows you to understand whether there are enough couriers working in a team, whether there are too many of them or, on the contrary, not enough;
• time frame planning. Thanks to the TMS system, companies can arrange delivery within 12 hours, within 24 hours, or for example from 10:00 to 12:00. True, not every developer of this software offers such an option. If we consider Ukrainian manufacturers, then the UIS company offers something similar.

After the implementation of the TMS system, most of the functions that previously required the involvement of the human factor will be automated. This will have a great impact on the quality of the delivery service and customer loyalty.

What results does the implementation of a TMS system give in business?



The implementation of this software gives excellent results from the first weeks of use. If we consider the main benefits that a business will receive, then these are:

1. Competent staffing. The system will make it clear how many couriers you really need in your delivery service. This will allow you to avoid hiring unnecessary employees and save on wages.
2. Increase in the number of clients. Firstly, good service is valued and customers are more loyal to those companies that care about their comfort and do their work on time and with high quality. Secondly, competent organization of work will a priori allow you to take on more orders and serve a potentially larger number of clients. Business can develop and scale.
3. No errors in operation. Electronic documentation is not only convenient, but also as accurate as possible.

This investment pays off within the first year of use.

What to look for when choosing a TMS system?



There are many analogues of similar software on the market, and in general, each manufacturer has its own approach to the development of similar products, so they may differ. Experts recommend paying attention to the following criteria:

• reliability. It is important that the system does not “glitch”, does not “freeze”, is reliable and fault-tolerant. In this case, the base on which the TMS is built is of great importance. Good reviews from the Oracle database;
• adaptability. It’s great if the system allows you to add certain functions while you’re using it. The software must be flexible so that the developer can adapt it to the needs of a specific business;
• price. This is a purely individual point, but if you want to save money, then choose Ukrainian products. On the domestic market there are very worthy analogues of foreign systems at several times lower prices.

If you want to develop your own business and rely on a high-quality delivery service, then you cannot do without a Transportation management system.