Any element that affects the carrier who transports your goods is sure to impact your business in a significant way. Changes in the hours of service or shortage of drivers may affect the business because it makes it difficult for shippers to get good services at reasonable rates. Moreover, shippers are pressurized continuously to reduce their supply chain costs and improve customer service. In such situations, how can a company execute a successful transportation plan to meet customer expectations effectively regardless of any potential disruptions?
How can shippers optimize their performance?
Although there is no fool-proof plan but, there are a few steps that shippers can take to optimize their performance and deliver a great customer service. Here are five ways in which shippers can work.
- Optimizing loads, combining multiple LTL shipments into a single truckload shipment and thus, reducing carriers and costs.
- Establishing optimistic relationships with a top logistics service provider through a systematic and streamlined process.
- Monitoring carrier data on a regular basis to check for changes in the market that could impact the carriers.
- Reviewing key performance metrics to realize if there is any sort of problem with the carrier.
How does technology help shippers to optimize their performance?
Technology is the most important element for all these functions. Transportation management systems (TMS) have provided a strong foundation to help shippers plan their routes and track shipments. Common TMS modules include route planning, load optimization, freight audit, payment, order visibility and carrier management. These modules help in cost reduction through route planning, load optimization and mode selection; and accountability improvement with visibility into the transportation chain, thus providing greater flexibility to make changes in delivery plans.
What are the benefits of TMS?
TMS helps companies to move freight from origin to destination efficiently and cost-effectively. It includes moving freight in all modes and also intermodal movements. Here are the main areas that involve further benefits of TMS for maximum ROI.
Using a TMS more often will help decrease the time on freight management, which will help you focus on other projects like warehousing. TMS will also decrease data entry errors thus reducing any time wasted on rectifying these mistakes. Combined with a Warehouse Management System, TMS will help you gain supply chain visibility that will help save on costs and decrease inefficiencies.
If you have multiple locations within your organization, you may want to put together pool point distribution programs or set up inbound programs between those locations. TMS helps you to easily create a master bill and you can have individual logins with multiple locations that can be managed by a single person.
Improved customer service
When you choose a carrier thinking that he is cheaper than the rest, you think you are benefitting. However, when you use the reporting capability of the TMS, you realize that the carrier has been delivering your freight on time only 60% of the times. Now, when you change to a carrier that is a little more costly than the previous one, you see that it is delivering your freight on time 100% of the time! This is where you know how you can increase customer satisfaction and happiness, and thus improve your customer service. Jayem Logistics is the best logistics company in India with whom you can rest assured that your freight will 100% reach your customers on time, no matter what the situation.
Cash flow improvements
With TMS, a shipper can employ proper freight accounting, auditing and consolidation services, thus reducing the freight invoice by 5-10%. Moreover, the company can also save 2-5% of their total freight bill by getting hold of inaccurate charges and duplicate payments, thus improving cash flow improvements.