Analyst Insight: Today’s supply chains must be agile and resilient, which means traditional approaches to managing transportation — especially within an ERP (enterprise resource planning) system framework — are struggling to keep up. For large shippers, managing vast volumes of loads across various modes and regions requires more than just functionality; it demands a specialized level of visibility, flexibility and control. 

Visibility has evolved beyond knowing where a load is; it now includes understanding the entire journey of goods, the potential for delays, and how to adjust resources in response to unforeseen events. For large shippers, missing these details can result in delays, higher costs and dissatisfied customers.

Often, companies with transportation management systems (TMS) that are offshoots of ERP systems find themselves at a disadvantage as these TMSs typically need more robust capabilities and real-time visibility to handle today's complex logistics landscape. While ERP-based TMS modules may streamline certain administrative aspects of transportation, they're often limited in scope and depth regarding the nuances of load-by-load management. A dedicated TMS, especially one that manages multiple modes, addresses these challenges head-on by providing the visibility shippers need to thrive.

Managing hundreds or thousands of loads requires granular insights, including real-time tracking, load status, estimated times of arrival (ETAs) and potential disruptions. Shippers face challenges in efficiently allocating resources, meeting customer expectations, and minimizing disruptions without these insights. With real-time visibility from a multimodal TMS, shippers can track shipments regardless of modes by getting real-time location information, including dynamic ETAs and exception alerts.

ERP-based TMS modules often rely on incomplete data, and lack real-time integration with external stakeholders, which hampers proactive decision-making. A dedicated multimodal TMS is purpose-built for transportation and logistics management, offering shippers visibility and insights on potential disruptions that could ripple through the entire supply chain. 

A dedicated TMS integrates with carriers and partners in real-time, pulling live data from multiple sources, and updating shippers with current load statuses, allowing companies to plan and adjust on the fly, improving their response to dynamic challenges. For instance, if a delay occurs due to bad weather, the TMS can alert shippers immediately, enabling them to reroute the shipment or notify customers of potential delays.

A TMS that provides visibility into every mode allows shippers to manage and optimize diverse transportation options within a single platform. By monitoring all shipments, no matter the mode, shippers can compare transit times, costs and performance across options, making better-informed decisions that enhance efficiency and cost savings.

With predictive analytics, a TMS helps shippers to be more proactive, especially when the company has tight schedules and customer demands. If historical data indicates a particular route is prone to delays, the TMS can alert logistics teams in advance, allowing them to adjust or notify customers of potential changes. With analytics, a TMS allows shippers to analyze performance over time, identifying patterns and opportunities for improvement. For instance, if one carrier consistently underperforms on delivery times, shippers can make strategic decisions based on data, rather than assumptions. This visibility enables ongoing optimization and better carrier relationships.

Outlook: Transportation visibility is no longer a luxury for large shippers handling thousands of loads; it's a necessity. ERP-based TMS modules cannot provide the depth and scope of insights required to manage modern logistics. With a dedicated TMS, shippers gain real-time visibility, predictive capabilities and the flexibility to adjust on the fly, ultimately enhancing efficiency, reducing costs and strengthening customer relationships.

Resource Link: https://www.intellitrans.com/