Logistics is one of the crucial parts of today’s business, without internal efficiency the success of business is not possible, to get the efficiency in your company you’ll need a good transportation and logistic management system to have a balance between your warehouse, order management and distribution system.
As TMS is an automated software that is centralized in a cloud software which helps in managing customers, shippers and carriers along route planning and optimization, carrier and shipping management and order management are few more features to look for.
Transport management system is used by retailers, manufactures, distributors, e-commerce companies,
TMS is divided into following categories
On-premise TMS
Installing an on premise Transport management software requires a license as it is installed on the company’s premise and provides more security than cloud based as the data is not accessible for third parties. Though the cost of installing is higher due to installation of in house hardware, the cost of upgradation keeping up with government policies and breakdowns are all additional costs This software is installed at company’s hardware and offers many services like:
- Security
Security lets one have whole control over the data which is saved on the software, being this software installed in-house it makes it vulnerable to cyber attack.
- Functionality
The on-premise software is fixed features at a price, it can be customized but needs experts outside which can make the software lil complex.
- Scalability
The scalability on the same premises will need additional hardware and if expanding to different locations you’ll need to buy a whole new hardware and software .
- Cost
There is no monthly cost but there is a constant cost of hardware maintenance and upgradation.
- Data exchange
For data exchange between departments and other offices you’ll have to add additional software to get an remote access, it doesn’t work when employees work remotely different places
Cloud based TMS
The software is provided by third party and hosts the software and application, due to third party operations there is no capital costs and is even the perfect choice for companies who wants to expands globally as on premise TMS is not much feasible for expansion, even the Data stored on the cloud is encrypted which eliminates the risk of losing it. Due to the fact of data being saved on cloud it eliminates the risk of losing your data when the server is down or any kind of breakdown. The data of company is saved on cloud giving it the access from anytime and anywhere
- Security
While talking about security when installing cloud based TMS is important as the access of our data is with a third party and data encryption is must.
- Scalability
The scalability of the software is handled by SaaS which helps scaling with convenient cost depending upon the system
- Data exchange
Data exchange is very convenient as it can be integrated with other software to help work more smoothly
- Cost
Many companies provide subscription based models whereas some works on monthly bases and some even offers payment plans accordingly functionality
- Functionality
Cloud based software includes all functions and features.
Custom logistic app development
Custom logistic management helps the company mold the software according to their need for the company without giving any third party the access to their data. There are many feasible and ready-made softwares for companies but still many companies choose to make their own TMS solution.
- Functionality
The business can choose the functionality according to their own will; they can even just have basic reliable transportation management.
- Data exchange
Custom APIs can allow the TMS to exchange data in standard format with other ERPs
- Cost
As per monthly subscription plans the cost of custom made TMS is a little higher due to initial investment of software.
- Scalability
Adding the scalable application in the architect of software is important as it will be harder in future
- Security
The company making its own TMS has full access to the data of its own which does not allow any third party access.
WHAT FEATURES TO LOOK FOR?
- PRICE CALCULATOR
Wages for drivers, fuel cost, delivery estimated cost, vehicle cost and depreciation in case own vehicles an inbuilt price calculator is important, because in some busy seasons the weekly/monthly cost increases so an inbuilt price calculator is necessary
- LOAD PLANNING
The most time consuming tasks in a company is loading and unloading of goods So TMS helps to minimize the unnecessary task with the algorithms, even with the help of filters one can easily figure out warehouse, order types, route, delivery date and many more
- ROUTE PLANNING
Unplanned trips are best but unplanned routes can cost a company higher fleet charges, sos having these cost a route optimization is important, through this the extra stoppage can be eliminated and deliveries can be done efficiently
- SHIPMENT TRACKING
Shipment tracking not only increases the customers faith in us but even helps us to manage the delivery time, drivers and vehicles safety. EWith offline mode installed even if the driver enters in no connectivity or poor connectivity area the offline mode can help the company and customer track the delivery.
- INTEGRATION WITH OTHER SOFTWARE
To make a business run smooth and efficient way not only TMS but the company need warehouse management other payment modes, retail management software so a good TMS software which can integrate other softwares can help run a business continuously
THE BENEFITS OF MANAGEMENT
When a company is using a Transport and logistics management system it helps them to predict their sales volume and on demand and can reduce the cost of their delivery and it even helps reduce the manual labor by automated documentation, creating invoices and transport alerts. TMS helps in keeping an update on delivery, transports and even helps to take a follow up after the work is done. It helps is optimizing the cost, it also help in inventory planning by keeping a track on outgoing inventory, by constant updates on shipment and real time tracking it enhances our customers satisfaction, with less fleet and freight cost the company can focus on warehouse optimization, automation of work results in less error, better delivery management and helps making our supply chain more optimized
