Why Your Business Should Be Integrating a TMS

integrating a TMS

Why integrating a TMS is best for your

business 

When offered shipping software, some business owners are skeptical. Why fix something that isn’t broken? The harsh reality is that while legacy solutions may still work, for now, times are quickly changing. As buyers’ expectations change and businesses continue to grow, legacy solutions are quickly becoming outdated and inadequate to handle the changes. Integrating a TMS can help your business meet these expectations and grow your bottom line.

integrating a TMS

While there are many transportation management systems (TMS) out there, there are four valuable components that all shipping solutions should be able to offer their customer:

1. Automation

Order fulfillment can be a lengthy and expensive process. In order for businesses to ship a package, they must go through multiple steps: pick the correct box, carrier, shipment type, print labels, schedule pickups, etc. While this may be fine for small orders, once shipping volumes begin to increase, businesses can no longer afford to manually engage in such a tedious process for each shipment.

By leveraging a transportation management system, order fulfillment and management no longer have to be roadblocks. In addition to optimizing each step of the shipping process, having an automated system means fewer errors, manual work and time spent on shipping packages.

By streamlining the supply chain, business owners are able to fulfill orders faster and more cost-efficiently, allowing for higher profit margins and higher customer satisfaction.

2. Certainty

With legacy solutions, business owners are often left guessing and hoping that they made the right decision for their shipment. In contrast, shipping solutions give business owners control over their shipments. Out goes estimation and in comes predictable margins and certainty.

For instance, multi-carrier rating software automatically calculates and compares the shipping rates from various carriers to show owners the most cost-efficient options, all with the click of a button. On the other hand, packing optimization software is able to calculate the optimal box size based on the actual items that make up each order, regardless of how uniquely shaped or fragile an item is.

Through the use of such services, business owners are able to have full cost-transparency on their shipments, allowing for greater cost-visibility for the customer.  This results in lower shopping cart abandonment rates and higher customer satisfaction. Through such solutions, business owners no longer have to base their decisions off of guesswork and can continue to focus on what matters: growing their business.

integrating a TMS

3. Convenience

To put it simply, integrating a TMS makes life easier by reducing the manual work you need to put in for each shipment.

For example, with a platform like ShipHawk that offers a unified tracking system, businesses are able to aggregate all of their carriers’ tracking updates into one platform. With real-time updates, businesses no longer have to constantly contact several carriers at a time for customer tracking updates, and customers no longer have to keep visiting third party sites (or picking up the phone to call customer service) to keep track of their packages.

integrating a TMS

Furthermore, many shipping software API’s offer auto-generated shipping labels and bills of lading for user convenience. The best transportation management systems aim to cut out the middle-man (third party websites, customer service reps, etc.) and simplify the customer’s shipping experience with proactive order updates.

4. Growth

Most importantly, transportation management systems gives your business the bandwidth to grow and take advantage of the opportunities created through features such as automation. In addition to the reduction of shipping costs, shipping software can help businesses streamline their growth by offering data and analytics tools.

With a TMS like ShipHawk, businesses gain access to margin analysis, customer profitability, shipping trends, and reconciliation. By being able to leverage such data, businesses can allocate resources to proper areas and save thousands of dollars in addition to the shipping costs already saved.

Overall, there are many benefits that come with utilizing a transportation management system. Whether your company wants a more transparent tracking system, a foolproof comparison of carriers and packaging options, or simply to stop losing profit margins to high shipping costs, integrating a TMS software can be a great solution to the problem.

Although each company will have specific needs, if a shipping solution can provide these four areas of value, it might be worth taking a closer look.

Strategic Selection: Best TMS Software

Best TMS Software

Selecting the Best TMS Software for

Your Business

According to the U.S. Department of Commerce, E-commerce sales are growing 3.5% every year and are predicted to continue that trend into the foreseeable future. E-commerce is changing the way businesses are run, and the result is an added emphasis on shipping fulfillment and product delivery. Customers expect their orders to arrive quickly and cheaply, and to be informed every step of the way.  How are modern retailers and manufacturers keeping up with these demands?  This question is key when selecting a transportation management system.

Best TMS Software

5 Reasons why you should make the move to a modern TMS

1: Cut shipping costs

Shipping is the largest non-COGS expense and is growing at an exponential rate. There are countless inefficiencies and missed opportunities in day-to-day work – but many businesses don’t have the time, or the technology, to constantly scan the market for the best rates on every shipment, not to mention renegotiate contracts, and find the new services that are required to protect or grow margins.

Best TMS Software

Why TMS 2.0:

E

Rate shopping – smarter and faster

The easiest way to cut shipping costs is to find a lower price for the same service. Carefully comparing rates among different carriers and negotiating to get the best deal is one way to achieve lower prices, but this process takes time, and in today’s market, technology A modern TMS does the heavy lifting for you. It has a vast and continually growing database of hundreds of logistics providers of all types – parcel, freight and white glove.

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Find the best shipping option for every item, every shipment, based on YOUR criteria.

A modern TMS gives you access to multi-carrier, multi-mode rating in real time. It also supports dynamic rules using simple “if…then” logic, automatically ensuring the best option for each shipment. For example, “If the one-time performance of carrier X drops below 80%, then automatically switch to carrier Y.” These rules help ensure that your customers are receiving customized, efficient service with zero programming effort from your in-house team. Additionally, you can filter and search based on criteria such as, price level, order value limits, service regions, and product specific requirements.

2: Automate shipping-related workflows

Automated workflows are often implemented in many areas of the business, but in shipping, a lot of work is still being done manually.

Best TMS Software

Why TMS 2.0:

E

Automatic packing optimization

A modern TMS automatically determines the right box and other packing materials to use for one or multiple products, and suggests how to pack them best, ensuring the highest accuracy at the lowest cost, every time.

E

Process orders faster

A modern TMS synchronizes customer orders from various channels, chooses the right carrier, recommends the right box sizes and palletization, as well as creates labels, BOLs, and other necessary documents. This saves time and money. According to ShipHawk customer data, about 20% of shipping costs are related to processing. You can also connect a modern TMS to other business systems (like an ERP, WMS, OMS, eCom platform) or even machines (like Packsize) to your TMS to create more efficiency.

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Free up employee time to do higher-value work

An automated system, like a modern TMS, will allow your staff to work on higher value projects, increasing overall productivity and efficiency.

3: Provide better service to your customers

Your customer is your top priority. Their needs must stay front and center.

Best TMS Software

Why TMS 2.0:

E

Offer shipment tracking

With TMS 2.0, you can easily offer built-in, on-brand shipment tracking, with proactive updates. Customers will not need to go to a carrier’s website or call your customer service team, reducing customer calls while improving post-purchase NPS (net promoter scores).

E

Sell ANY product type

A modern TMS system, with its access to an extensive carrier database, helps you find the best shipment option for any product – so that you can offer the products you know your customers want. This helps eliminate any reservations you may have regarding stocking (or drop shipping) and shipping products that may be more complicated to ship.

4: Supercharge your planning through analytics

If you have data spread across different systems and applications, there is a large amount of guesswork involved in go-forward decision making.

Best TMS Software

Why TMS 2.0:

E

Get everyone on the same page

With a modern TMS everyone on your team will have access to real-time data through simple, customizable visualizations. You can run reports and customize them in many ways, to suit your business needs. And the best part? Because the data is accurate in real time, everyone in the organization can rely on it for making data-driven decisions.

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Financial Planning based on real data

Having access to real-time data can significantly improve your financial planning. You will know, and better understand, your margins in advance and won’t have to wait the usual 30-45 days for carrier bills.

5: Future-proof your logistics operations

Being able to move in the direction your business is going without a glitch is of utmost importance.

Best TMS Software

Why TMS 2.0:

E

Save money and scale with your business

A legacy TMS often costs a fortune in annual license and maintenance fees, servers, disaster recovery systems etc. These systems are often not up to the latest standards in terms of user interface or functionality. A modern TMS costs less because the price is dependent on size, allowing you to deliver more.

E

Stay up-to-date

A modern TMS is based on the SaaS model, meaning that it is hosted in the cloud and that you always have access to the latest version of the software – without the need for costly and time-consuming updates and/or maintenance.

E

Simple interface, fast setup, and great support

A modern TMS utilizes a simple user interface and requires little time for setup and training, ensuring a seamless transition to the new system.

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Drop Shipping

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