According to market research, the Transportation Management Systems (TMS) market had exceeded $1 billion in 2006. Through the years, the objective of a TMS implementation remains to be the achievement of customer service level requirements at the lowest possible cost.
Transportation Management Systems (TMS) is a software application, often web-hosted, that is used as part of logistics management especially for activities like managing shipping units, shipments that are outbound and intra-company, inbound shipment scheduling, bills of lading generation, carrier or transportation mode selection, freight bill auditing and payment and processing of loss and damage claims. These systems often feature a “dashboard” or a graphic user interface portal. The dashboard displays data according to key success factors that are relevant to the user.
Companies, especially those with complex supply chains, make use of TMS so as to manage and track shipments that may be carried by air, land or sea. Several shipment options are available for clients including truck, parcel, inter modal, private fleet, rail, or through domestic carriers. Some systems allow clients to track their shipments online. Other TMS incorporates Global Positioning System navigation technology to enable fleet managers to monitor and dispatch vehicles in accordance with shipment schedules. The advancement of technology has made it possible to transport goods in virtually any mode and integrating all these can be made simple with the right applications.
Transportation management solutions that have been developed are designed to automate a business firm’s transportation network, both inbound and outbound. This instrument paves the way towards a more efficient day-to-day operations including source to shipment assignments. Moreover, by ensuring a smooth flow of these operational activities, relationships with suppliers and carriers may be strengthened. The benefits of integrating TMS into a company’s operation strategy are not limited to the increased efficiency of the supply chain. By eliminating logistical problems, companies can focus on providing quality services to customers. Consequently, with high customer satisfaction, overall profitability of a firm will increase.
Management of transportation facilities is often associated with the concept of logistics and supply chain management. These two principles are primarily concerned with the smooth flow of certain goods from the supplier of a manufacturing firm to the end users which are the firm’s customers. Aside from transportation, other important logistical concerns are inventory management, materials handling, warehousing, inventory management, and customer service. For various businesses in the United States, logistics make up 20 to 30 percent of total operating costs. By utilizing an ideal TMS program, it will be more convenient for business executives to plan and implement supply chain activities. In addition, performance efficiency of the entire supply chain will be guaranteed and the company will benefit from cost savings.
Most Transportation Management System programs are sold with perpetual licenses that may need only annual maintenance. They may also be offered with the option to avail of client hosting or with options for vendor hosting. With TMS, it is possible for clients to benefit from lowered freights, consolidation of routes, and various productivity advantages. Demand for TMS is expected to increase as companies that are still managing their transportation operations with traditional spreadsheets and faxes are expected to make the switch.
By: Sam Miller
Posts Tagged ‘Fleet Managers’
Predictions In The World Of Fleet Management For The Coming Year
October 13th, 2009Fleet management can be defined as the tracking of a company’s vehicles; this can include ships, vans and cars. It is becoming increasingly viable with the advances in GPS technology for all manner of companies. The uses are diverse and for the manager who likes to know the whereabouts and functions of their fleet it can provide a comprehensive solution. But what predictions can be made for the fleet management industry in the next twelve months?
One issue that is becoming increasingly important in the world of fleet management is the rises in the cost of fuel. This has become a major concern as expenses for fuel seem to be escalating at record levels. It is estimated that the hardest hit will be those involved in the management of truck fleets. Fleet managers this year will attempt to lower their fuel costs; this however will be difficult. The only way they will be able to reduce the fuel costs of a fleet is to look at tyres and maintenance of vehicles to ensure higher levels of efficiency.
One benefit for those involved in fleet management is that last year’s new regulation in engines is not having as great an effect as previously thought. Seemingly efficiency has not been greatly diminished. One way in which fleet managers will be trying to increase efficiency is to limit the time vehicles are spent idling. Introducing management procedures that forces drivers to turn off engines whenever stationary will definitely become common practice this year. Once again technology is aiding these procedures by producing devices that measure idling time and cut the engine off if this period is too long.
The world of fleet management may also see the increased use of alternative fuels. We are already seeing bio-fuel becoming a popular alternative to diesel as it is cheaper and better for the environment. There are even transportation companies sprouting up that are specialising in bio-fuelled vehicles; it is believed that this approach will lead to environmentally conscious customers utilising their services. An alternative to bio-fuel has been the use of propane in fleet management; this comes at a time when the entire motor industry is trying to find more viable fuelling solutions.
GPS tracking will become an even more important element to fleet management in 2008. While these systems have been developing since the late eighties it is now that they are becoming a truly appealing option. While installation costs are still relatively high the dividends can be huge. They can improve fuel efficiency, increase delivery space and more generally raise levels of productivity.
GPS tracking or telematics can improve fuel efficiency by creating routes that are the most fuel efficient fleet management solution. By planning driver routes in advance it is possible to maximise the deliveries made in relation to the fuel used. In the same way, by making accurate route plans it is possible to reduce the number of trucks on the road by filling each to their maximum before departure. Hopefully this technological advancement will make the one pallet delivery a non existent occurrence.
The use of GPS systems can also measure the activities of drivers in detail. This may seem as an invasion of privacy on the part of the fleet management team, but as the drivers are effectively working, their whereabouts should be known at all times. By having procedures in place to deal with drivers who take excessive detours it is possible to maximise efficiency and reduce the time wasted.
The world of fleet management is rapidly changing. This is mainly due to inclusion of GPS technology in many fleets and the subsequent benefits. As stated previously the increase in fuel prices worldwide means that the major concern of fleet managers this year will be to increase fuel efficiency and hence profitability.
By: Thomas Pretty
