Successful Transportation Management using software solution

Enterprise software to manage the processes of the movement and storage of goods is called a transportation management system. Simply put, TMS is an integration platform that enables companies to handle and optimize supply chain transportation and logistics management.

Logistics management solutions form a part of ERP systems and help control the entire supply chain, dealing with both inbound (procurement) and outbound (shipping) activities. Its ultimate goals are to

• enhance shipment efficiency;
• provide visibility of logistics processes;
• reduce transport expenses;
• improve customer service.

The flexibility of such platforms allows developers to create both logistics software for small businesses, as well as large enterprise logistics software to handle complex transport networks.

Functions of Logistics Software Solutions

There are various programs for transport companies such as CRM for freight forwarders, transport ERP solutions, warehouse management systems and other shipping software. They all have unique features and capabilities but basic functions are similar.

1. Planning

A TMS can integrate with numerous enterprise systems, such as warehouse management system, order and purchasing management system, CRM, accounting solutions and more, enabling users to plan the most efficient transportation scenarios.

On the basis of given parameters (distance, time, cost, a minimum required the number of stops, type of cargo, etc.), a transport management solution is able to define optimal routes, plan loading schemes and calculate the expenses.

2. Execution

Management systems monitor the execution of the shipment plan from point A to point B in the real-time mode. Drivers, carriers, managers and customers can access information on freight traffic, customs clearance, documents, automobile conditions, metrics, accidents, delays, etc.

When cargo is transported by several types of transport, it is necessary to maintain contact with various services (seaports, airports, customs, etc.).The system automates document processing and provides easy communication with all the participants.

You can inform relevant people via an application about the arrival time of your vehicle in advance (or warn about the delay) and automatically prepare the necessary documentation. Thus, your cargo will not have to queue up for loading or wait for shipping papers to be drawn up.

3. Analysis

A digital transport management solution uses key performance indicators (KPI), such as cost per mile, cost per shipping unit and delivery performance, to control service quality, analyze statistics and generate reports.

Thorough analysis and data-based reports are highly important for the optimization of processes and efficient decision-making.

Logistics Software Benefits

A TMS system brings benefits to shippers, carriers, warehouses, manufacturers, e-Commerce companies and many more users. Eventually, the system can greatly contribute to the creation of a seamless global trade network.

Organizations that make trucking logistics software and correctly deploy it can reap the following benefits:

• The automation of manual processes, which means that you can handle additional workloads in less time and without hiring more employees.
• Visibility of the supply chain, because all the information is integrated on a single platform, and all the participants of the shipping process can access it online and from anywhere.
• Reduced expenses are possible due to the automation of numerous processes and the elimination of human error.
• Better quality of services is provided by the ability of programs to analyze data online, generate dynamic reports, pinpoint discrepancies and make necessary adjustments quickly without serious consequences.

The cost of transportation logistics software may be rather high, but income from the above-mentioned advantages will definitely exceed initial expenses.

Steps to Build Logistics Management Software

The TMS market offers hundreds of ready-made solutions you can buy, deploy and instantly use. Still, they are not universal, and most companies require customization to tailor a system in accordance with their unique needs and operations. Here is a strategy on how to develop custom logistics software.

1. Choose a Provider

The first step of strategic importance is to choose a reliable provider. When comparing different offerings, pay attention to the following services a vendor should provide:

• Open architecture design, so it would be easy to implement new features and adopt new technologies.
• Integration with multiple services that enables you to utilize the full potential of a platform.
• Scalability to meet the increasing demand as your company grows.
• Security levels to protect critical data from breaches.

These criteria are universal but not the only ones you should consider. Other choice criteria should be based on the unique company’s needs.

To date, the leading vendors of transportation and logistics software include SAP, Oracle, Infor, Microsoft, JDA Software, Manhattan Associates and others.

2. Choose Between Cloud and On-Premises Deployment

Logistics automation systems can be divided into two categories: on-premises and cloud-based. Software installation on local services requires significant financial investments, but many large manufacturing and distribution companies still prefer this type of hosting because of the security requirements and necessity to control servers on a daily basis.

Cloud-based transportation management systems do not need additional hardware and, in this case, the initial cost is much lower. Another big advantage is that all participants in the transportation process have fast and easy access to the system from any geographic location.

Again, the choice will depend on the performance needs of your organization.

3. Decide on Functionality

Based on the functions you want to automate, decide on the modules and tools that will be included in the system and make a draft.

Possible modules are:

• CRM — customer relationships management
• WMS — warehouse management systems
• SCM — supply chain management
• EAM — enterprise asset management
• MES — manufacturing execution systems

Then, professional designers and developers will work on the creation of APIs and interfaces for clients and administrators.

4. Build a Mobile Version

The automation of logistics processes implies that systems will generate a lot of real-time data. Accordingly, all the participants must have unlimited access to the system at any time, from any place and from any connected device to get the data, analyze it and make instant decisions.

Such a possibility can be provided, alongside cloud computing, by a mobile application. Consider developing native apps for drivers and for logistics managers to facilitate seamless transportation and better customer service.