How TMS Software Can Improve Transportation Logistics

Written by Economic Development Jobs on September 14, 2018. Posted in Expedited trucking definition, Ltl carriers, Truckload freight

The Federal Motor Carrier Safety Administration says that approximately 5.9 million commercial motor vehicle drivers operate in the US and nearly 12 million trucks, rail cars, trains and other vessels move goods over the transportation network.

Even with such a large transportation system, the way we move things is constantly evolving and more and more business is being done online. E-commerce in the United States generates more than $400 billion in revenue and is climbing. Whether carrying a truckload, less-than-truckload (LTL) or parcels, they are being forced to adjust to changes in the retail industry.

The trucking industry is just one part of the transportation sector feeling the effects of these changes. While the Bureau of Labor Statistics reports that trucking will transport 18.79 billion tons of cargo by 2040, it appears the length of those hauls is decreasing.

Satish Jindel, president of the SJ Consulting Group, says the length of trucking hauls has declined. Public truckload carries say the average length of haul has decreased four percent between 2011 and 2016.

Even with changes, the importance of the trucking industry in the United States doesn’t appear to be losing its place in commerce anytime soon.

Trucks carry the largest share of freight by value, tons and ton-miles for shipments moving 750 miles or less. Rail is the preferred method for shipments greater than 750 miles. The LTL market is estimated at $35 billion and according to the U.S. Department of Transportation, the value of freight moved is expected to grow from $882 per ton in 2007 to $1,377 per ton in 2040.

That means companies are still relying on LTL shipping, and LTL freight services.

With the importance of the trucking industry not diminishing, transportation management software may be a crucial tool in helping the industry and other forms of transportation adjust to the changes in the market. Transportation management software is typically offered in four forms: on-premises licensing, hosted licensing, on-premises hosted licensing and hosted-TMS free of licensing.

Transportation management software can help with planning and decision making and can assist with transportation execution. TMS software can also help with logistics management and help a company key track of its performance. TMS software can also offer help with transportation costs, batching of orders, optimizing routes and quality control.

One way that TMS software can help is by keeping tracking of things that are shipped using expedited international shipping services. Expedited international shipping services work great if there is a shipment that must reach a place in a specific time frame. Many companies including Purolator International offer several levels of expedited international shipping services to meet a company’s needs. Expedited forwarding for example can help ensure definite delivery in one, two or three days and companies also offer expedited international shipping services that go beyond shipping to just Canada and the United States.

TMS Software can be used with expedited international shipping services to help set up different distribution points within an organization, helping to improve logistics. Using expedited shipping helps improve customer service and the software can help track whether customers are getting their shipments on time. Better service allows companies to plan better for the inventory they have on hand and TMS software can help manage that inventory from multiple distribution points.

Using TMS software, companies can monitor their truckload freight, truckload shipping rates and overall truckload logistics.

As e-commerce gains more and more of a hold on the United States retail market, it will surely be crucial for various transportation industries to adapt with the times. While the importance of the trucking industry and other forms of transportation still play an important role in the United States economy, their role and importance could see some changes in the future. Transportation management software can help transportation industries adapt and better their business practices as e-commerce grows.

Are you in need of transportation management software for your business? Capterra provides a review of several different types of TMS and provides reviews for each of them.

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