Carriers operating without an intelligent TMS experience several pain points that hurt their bottom line.
Below are 7 ways these carriers are making daily operations much more challenging than they need to be.
1. Wasted time without automation
Carriers waste time by manually performing tasks that could be automated, such as creating and sending shipping documents, tracking and updating shipment status, and creating and analyzing reports. You’re not just bored when you have to perform the same task repeatedly—you’re also inefficient.
Handling every little daily task by hand keeps you from focusing on the bigger picture. This wasted time adds up and costs your business big in the long run.
An intelligent TMS helps carriers optimize routes and reduce transportation costs and environmental impact.
2. Lack of visibility
Without real-time tracking and monitoring, companies have limited visibility into their shipments and cargo status, making it difficult to provide accurate delivery estimates to customers. This also creates a lot of unnecessary back and forth phone calls and text messages that can be prevented between dispatchers and drivers with shippers and customers.
Shipment visibility helps logistical managers act quickly to settle any issues that may arise during routine operations. Lack of visibility makes planning harder than needed and leads to frustrated customers and lost business.
3. Inaccurate data
Companies struggling to track and report costs and transportation KPIs are running in the dark. These companies find it challenging to identify areas for improvement and make informed business decisions.
The right information can help you avoid costly mistakes while making better decisions. But you’ll have problems if your data isn’t accurate, timely, and consistent.
Inaccurate data leads to poor decisions and poor service. It encourages reactive decision-making instead of proactive planning. And it makes it difficult for your company to respond when conditions change, as they often do.
4. Unable to scale
Many companies find it hard to scale their operations as their business grows. Scaling is especially difficult for carriers running their business solely through spreadsheets.
Most people think of more business as equaling more revenue. But more business always equals more work and responsibility.
Smart automations make scaling operations easier and more sensible.
And relying on limited technology is a surefire way to limit your growth.
The right TMS further helps carrier scale by enabling workplace flexibility. A modern TMS should give dispatchers the option to dispatch trucks from home.
5. Unexpected maintenance
Without a system to track and monitor the maintenance needs of their vehicles, carriers may miss essential scheduled maintenance, which leads to breakdowns and unplanned repairs. This can cause delays, added costs, and potential safety hazards.
A TMS helps carriers with unplanned maintenance by providing a centralized system for tracking and monitoring the maintenance needs of their fleet. It also helps carriers schedule regular maintenance and plan for unexpected repairs by providing alerts and notifications when vehicles need servicing.
Additionally, a TMS helps carriers track each vehicle’s maintenance history and schedule maintenance based on usage, reducing downtime and preventing breakdowns.
6. Difficulty in forecasting
Without an intelligent TMS, companies struggle to accurately forecast transportation demand, leading to inefficiency in the supply chain.
Forecasting is a challenge because it’s difficult to predict demand.
You can use historical data to forecast future demand. Still, you also have to consider factors like seasonality (for example, sales are usually higher during the holidays) and other variables that may be outside your control.
If you don’t have an intelligent TMS, forecasting is extra challenging because you don’t have access to real-time data about inventory levels or supply chain disruptions.
7. Poor document management
Document management isn’t sexy. But it can make or break your business. And it’ll become one of your biggest sources of frustration if you don’t have it under control.
Documents are how you prove you’ve done the work. They’re your key to getting paid.
Managing and creating paper documents is another headache that carriers don’t need. And improving document management can simplify tax preparation for truck drivers.
Managing and creating documents with a TMS’s mobile and web apps means you can finally throw away your binders and 3-hole punch.
An intelligent carrier TMS to the rescue
Carriers should invest in an intelligent TMS to streamline transportation operations, improve visibility, and make data-driven decisions to increase efficiency and reduce costs.
Fortunately, Optym's solutions help with all the problems listed in this post—and then some.