TMS Solutions Optimize Transportation Networks and Mitigate Disruption
Q: I already have an ERP and WMS. Why do I need a transportation management system (TMS)? Can one TMS support my global operations?
A: A transportation management system (TMS) focuses on optimizing the transportation segment of the supply chain. While there might be some overlap with ERP and WMS, the TMS works on the edge of the enterprise, connecting all transportation stakeholders such as carriers, freight forwarders, internal and external shippers.
TMS benefits are well documented, including routing compliance, cost containment, visibility, event management, and trade compliance. A cloud-based TMS with a Software-as-a-Service (SaaS) delivery model can significantly accelerate the return on investment. This is because the TMS vendor manages the hardware, infrastructure, software, tools, and personnel. Upgrades are seamless, and there is no need to schedule deployment windows to support upgrades, fixes, and patches. There is no concern with who on your team will work with the added servers, databases, tools, and network connections and if they have the right skills for the task.
In 2020 as the COVID-19 pandemic hit, companies utilizing our cloud-based TMS technology were able to reconfigure their transportation network with relative ease and avoid expensive supply chain disruptions.
One of the hardest hit verticals by the pandemic was the airline industry. Fortigo’s airline customers were able to change shipping execution virtually overnight. This empowered front-line workers to continue executing based on the updated company strategy.
In addition, as quote-based moves became more prevalent in 2020, integration with transportation market places was key to ensuring carrier and equipment availability while containing cost.
Q: How does a single TMS solution support supply chain operations on both a regional and global basis?
A: Historically, global companies have used TMS solutions geared towards a specific geography. This is changing with new cloud-based offerings that allow one TMS system for any shipment and any geography. This includes all shipping modes and freight characteristics across multiple locations.
With one system of record, there are no limitations to the number of carriers, rates, or shipping data. This allows companies to operate both regionally and globally while optimizing their transportation network.
While an ERP and WMS are crucial components of a comprehensive enterprise operation, they lack the targeted functionality that a TMS can provide, leaving potential savings on the table.
Fortigo’s one-stop TMS offers a proven track record of transportation savings and provides features that simplify all aspects of an enterprise supply chain.