TMS can provide a competitive advantage through many ways. First, it provides Visibility into freight cost drivers. Data-driven choice making is crucial in the operating environment of today. The capability to examine the freight spend by consumer, product, or order permits companies to create competitive pricing of product and point out opportunities for change. The intergrating information offers one, detailed view of the total transportation spend, and the inventory as well as administration cost (Gonzalez-Feliu, & Salanova, 2012). In addition, through implementing a TMS, a company can influence analytics, data, as well as real-time data to make the best freight decisions. As a result, it positively impacts the bottom line of the company and allows it to be more competitive.
TMS can influence strategy by comprehending ways to help partner carriers. Working with carriers to devise constant movement tactics can develop a win-win situation whereby carriers can increase effectiveness, whereas shipper partners can acquire capacity when required (Myerson, 2012). TMS can also affect organizational performance and increase operation efficiency in different ways. First is through improving the customer service. Though taking a strategic approach to TMS, it can enhance supply chain visibility and lessen costs, and this, in turn, offers a high level of consumer service across a wide range of customers. In addition, it improves the customer experience with precise, on-time deliveries, so the customers will be coming back with more bigger and frequent orders.
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In the aviation-related enterprise, TMS can be beneficial in various department. In the HR department, a consolidated platform can automate and streamline many manual procedures presently being established throughout a company as well as across numerous departments. The removal of inefficiencies and redundancies formed by workers working outside their ordinary work scope permits HR to redeploy employees and make sure they are more effective and maximizes time (Gonzalez-Feliu, & Salanova, 2012). In IT, continuous improvement in TMS is now regularly attained by strategic shippers because of the increased technology use and use of integrated systems offering the capability to data mine transportation reports. Maintenance can benefit from TMS if the the maintenance plans are customized to the technologies incorporating the TMS. When it comes to marketing a TMS can assist the company to comprehend which carriers to choose so as to make sure the product is reaching the consumer on time. Once the company has the confidence to know its clients are receiving shipments on time, it can as well plan more efficiently for having less inventory. This is becoming more vital for e-commerce stores as well as online retailers.
Operations can benefits from TMS through creating productivity as well as efficiency in the warehouse. Implementing a TMS processes permits the company to devote more time to other areas of importance (Myerson, 2012). TMS is built to be tailored to suit the needs of the company and are there to implement business rules and procedures to guarantee good execution. Everything from tracking carriers, high volume discounts inventory management, as well as increased customer service levels; TMS is a good way to enhance efficiency and also lessen overhead. In reservations, effective TMS takes into consideration availability of materials as well as order fulfillment requirements, guaranteeing warehouse capacity and maximum resource utilization. Trying to “levelize” flow using a distribution center is a crucial aspect to managing overall costs of logistics (Myerson, 2012). When it comes to sales, the deep change in TMS deployment is likely to prompt a noteworthy increase in sales. Having a scalable solution is crucial to managing the current fast changing business environment. Combining all the business units as well as acquisitions into a single platform allows the company to manage sales through one lens.
- Gonzalez-Feliu, J., & Salanova, J. M. (2012). Defining and evaluating collaborative urban freight transportation systems. Procedia-Social and Behavioral Sciences, 39, 172-183.
- Myerson, P. (2012). Lean supply chain and logistics management. Colombus: McGraw-Hill.