“With the current market volatility, organizations are facing increased shipping costs, as well as shipment delays,” Gore notes. “To combat that, organizations need real-time data, a wide carrier base, and access to all available shipping options to meet their speci c supply chain needs, whether that’s reduced cost or faster transit times.” An effective TMS is not merely critical in today’s complex and fast-paced supply chain environment— it’s indispensable. “Shippers face a multitude of challenges ranging from rising costs due to in ation and spiking demand as well as trade and compliance regulations, while still needing to run a lean just-in- time organization,” says Parker Stallard, president of Argus Logistics, a full- platform logistics management rm. “An effective TMS provides the backbone for meeting these challenges by enhancing ef ciency, reducing costs, and improving service delivery,” he says. AN ESSENTIAL TOOL A TMS is essential for a variety of reasons, ranging from enhanced visibility and better decision-making to managing compliance and regulation. “In today’s competitive and rapidly evolving supply chain environment, an effective TMS is no longer a luxury but a necessity for shippers looking to stay ahead, drive ef ciency, reduce costs, and deliver exceptional customer experiences,” says George Kontoravdis, president of Fortigo. Investing in an effective, robust TMS makes even more sense when considered alongside how much shippers pay to move their freight. “With freight expense usually between the third or fourth largest category of costs, depending on the company, if you don’t have a handle on it, your costs could be out of control,” says Nick Fisher, director of sales for ARTC Logistics, which provides advanced transportation management software. A TMS is “paramount for shippers,” notes Austin Long, project manager for freight management solutions provider
Using a TMS, shippers can plan the loading space of trucks, trailers, and containers and receive a calculation of the available loading space.
cloud, and most carriers have adopted technology that the TMS can tie into so that “shippers and carriers can quickly share information,” Fisher says. Today, TMS customers seek real- time visibility that provides “breadcrumb tracking,” allowing them to gain more control and improve event management during the shipment cycle, says Kevvon Burdette, chief commercial of cer for transportation technology provider Princeton TMX. PERFORMANCE METRICS In addition, shippers emphasize the importance of benchmarking metrics within their TMS to measure the effectiveness of their procurement strategies compared to the market and to weigh how their transportation network performs in comparison to their peers. The integration of predictive analytics and AI also helps a TMS optimize operations and anticipate demand, while sustainability initiatives drive the prioritizing of fuel ef ciency and emission reduction. “These advancements re ect the industry’s focus on ef ciency, visibility, and sustainability, shaping the future of transportation management,” Long says. Arti cial intelligence is bringing a profoundly new dynamic to the TMS eld.
Hat eld & Associates. “As global trade complexities increase, shippers face mounting pressures to streamline operations, reduce costs, and enhance customer satisfaction. “A robust TMS serves as a strategic tool, enabling shippers to optimize routes, consolidate shipments, track freight in real time, and mitigate risks effectively,” Long says. “It empowers decision-makers with data-driven insights, fostering agility and responsiveness to dynamic market conditions. “With heightened competition and evolving customer expectations, an ef cient TMS isn’t merely advantageous; it’s indispensable for shippers striving to maintain competitiveness and achieve supply chain excellence in today’s fast- paced environment,” he adds. Transportation management systems have developed into holistic solutions, making them more easily integrated into an organization’s supply chain. “In the past, our customers would use a TMS to meet one or two needs— whether rate shopping or shipment tracking. But in recent years, a TMS has evolved to allow shippers to integrate it as an extension of their supply chain that touches all areas of shipping,” Gore says. In the past few years, TMS solutions have made most data accessible via the
40 Inbound Logistics • May 2024
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