Signs a TMS is Right for You

Is Now the Right Time for a TMS?

Contrary to popular belief, technology is not the solution to every problem. We have heard horror stories about prospective clients investing valuable resources into technology only to see their problems get worse.

How can this be?

Make no mistake, when executed correctly, adopting technology can reduce costs, increase growth, sharpen a company’s strategy, and even improve employee retention. The difference between success and failure often depends on one thing... timing. Move too soon and you end up creating an overly complicated process that never gets adopted and eventually fails. Move too late and you end up so deeply entrenched with the status quo that it becomes costly to change course.

The decision to adopt a Transportation Management System (TMS) is no different, which is why we put together this list of 4 signs to look for when trying to determine if ‘now’ is the right time to consider the adoption of a TMS.

📈 Rapid Growth
If your company is growing 20-40% year-over-year, most likely you’re outgrowing your current processes. You may be experiencing issues covering all your loads or find yourself dedicating more and more time to tracking and tracing. A TMS will give you access to multiple carriers in one view. You’ll have visibility to both your contracted rates and the spot market rates.

🏭 🏭 New Distribution Points
Adding warehouse and distribution centers in geographically strategic locations is an effective way to reduce costs and increase margins. However, these additional locations add complexity and variability to your supply chain. Adopting a TMS can ensure that your loads are being planned and routed most effectively in seconds. A TMS is also capable of revealing whether you have the right products and the right quantities at the most efficient and cost-effective locations.

📟 Outdated Processes
If you are relying heavily on Excel spreadsheets, phone calls, and emails, you have an opportunity to automate many of your repetitive tasks, so you can focus on tasks that have more of an impact. Not only do these processes slow you down, but they also negatively impact your bottom line. Hours spent on manual tasks increases your costs, reduces opportunities for consolidation, and can quietly eat into your margins. Imagine the time saved by having a TMS syncing directly with your ERP or WMS to retrieve orders, intelligently plan and build loads, that your team can tender to the most effective carrier.

📊 Increased Focus on Data
Companies understand analyzing historical trends unlocks massive gains. Logistics is no different. However, for many supply chain leaders, they’re data rich and knowledge poor. The heavy lifting required to mine the data erases the benefits. A solid TMS allows you to establish KPIs that can help you go from losing the ‘rates game’ to winning the ‘cost game’.

If any of these scenarios sound familiar, you are not alone. You’re probably ready to improve processes and vastly improve your company with a TMS. Remember, selecting the right partner requires teamwork, so make sure to engage with your colleagues to understand what the right solution looks like for your company. Feel free to reach out to us for help and be sure to look out for a future article with recommendations on selecting the best TMS partner.

At Dynamic Logistix, we are boldly changing logistics management, one client at a time.

Our Tier 1 TMS program includes a leading Cloud-Based TMS that streamlines freight logistics from order entry, load building, route optimization, to carrier selection. We offer our clients 24/7 visibility, ERP integration, freight audit and pay (FAP), business intelligence reporting, and a dedicated account manager/team. Dynamic Logistix is eager to help your company save money and time.

Click here to schedule a complimentary process review with our logistics team.

7220 W 98th Terrace, Overland Park, KS 66212
913-274-3800

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