The search for differentiation is at the heart of any company's strategy. Indeed, the current economic context is marked by very powerful competition with a regular arrival of new entrants on the market.

A company wishing to develop its growth must now look for differentiation levers. While price differentiation can be complicated to implement, quality of service and customer satisfaction are key elements to take into account.  

In the logistics sector, digital technology has made its appearance and many innovative tools and services are used to improve service and quality.

We are talking about the Transport Management System (TMS). This essential tool helps companies to control part or all of their logistical process and consequently enables them to manage their goods flows in the best possible way.

What is an MSD in practice?

A TMS is a Transport Management System. It is a transport management software. This tool allows the traceability of deliveries and the optimisation of transport. This means that once your goods have been sent, you can follow them in real time in order to have an overview of the route they are taking and any potential hazards. You then have instant access to all the information about your goods.

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Today I present you with 5 advantages of using a TMS software:

• Logistics performance
• Reduced transport costs
• Productivity gains
• Improved customer service
• Controlling the environmental impact

Logistics performance

The TMS allows the planning and execution of transports based on the analysis of several route hypotheses. Routes are optimised taking into account several factors: traffic, fuel costs etc.

In addition, the use of a TMS will enable the real-time monitoring of goods transport by communicating on the various delays or unforeseen events and their causes.

As a result, all this information will give the different actors in the supply chain better visibility to improve their communication and planning of all their transports.

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Reduced transport costs

With the implementation of a TMS, a reduction in budgets will be observed. Shipments will be optimised with a reduction in empty trips, a strategic choice of carriers, and a fair price on goods shipments.

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Productivity gains  

The installation of TMS software will also allow for better teamwork within the company. With real-time information monitoring, each employee can work more efficiently. Information can be exchanged instantly at all stages of the supply chain. This software allows for collaborative, agile and efficient work. With a large number of employees and intermediaries in the freight transport sector, fluid and rapid communication is essential.

Improved customer service  

A major benefit of using a TMS is customer satisfaction. By controlling transport management in real time, it is now possible to respond to your customers regarding the precise location of products they have purchased online.

Controlling the environmental impact

The last benefit that we will highlight is the control of environmental impact. The primary objective of the TMS is to optimise flows. And optimisation also means pooling flows. This brings several advantages at the environmental level. Indeed, by optimising your flows, you will be able to reduce the number of empty journeys, to choose modes of transport and service providers on the basis of environmental criteria, and to strategically monitor the ecological balance of transport operations in order to find an alternative if the transport is considered too polluting.

Curious about how a TMS could improve your logistics performance? Schedule a meeting with our team.

No commitment, just an efficient one-hour meeting to assess the suitability of your use cases for the solution. 

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View the infographic - 5 Benefits of a TMS.