Learn about the benefits of an adaptive Transport Management System to help you navigate modern, complex supply chains and future-proof them.
You’d agree that today, global supply chains are increasingly susceptible to a diverse range of challenges. The industry has borne the brunt of numerous events, including geopolitical tensions, like the Ukraine-Russia conflict, a deadly pandemic, and many environmental fatalities — all in the last five years. Also, supply chains now need to be in tandem with the latest technological advancements and changing customer expectations. As a result, supply chain managers feel the urgent need to adapt to industry trends, be it onboarding the latest MHE at a warehouse or implementing cutting-edge supply chain software solutions such as a Transportation Management System (TMS).
Did you know that rising logistics costs are squeezing company profit margins? In 2022, U.S. logistics expenses surged nearly 20%, reaching $2.3 trillion. Gartner reports potential yearly savings between 5% and 15% for companies using TMS software.
With the natural progression of technology, TMS is expected to become one of the most indispensable supply chain software solutions for the logistics industry. An efficient TMS software deals with all the aspects of monitoring, organizing, and managing, as well as handling any matter related to the transportation of products, thus turning out to be the key to acing the logistics game. Transportation Management System benefits include increasing your supply chain visibility and eventually positively impacting freight delivery while making the entire supply chain more cost-effective and sustainable.
Scalability, flexibility, interoperability, real-time capabilities, and a user-friendly interface are at the heart of an adaptive TMS. As businesses expand, the volume of shipments, diversity of goods, and complexity of routes increase. A scalable supply chain software solution can seamlessly manage this growth without compromising performance or efficiency.
A logistics system needs to sync seamlessly to market trends — a benefit that adaptive TMS software brings. It helps you to respond to changes in a dynamic market, such as sudden spikes in e-commerce deliveries or changes in consumer preferences, while ensuring compliance and maintaining productivity, regardless of external changes.
However, a TMS cannot operate in isolation; it has to work interconnectedly with other systems and technologies. This interoperability reduces data silos, enhances collaboration, and enables more informed decision-making.
Overall, equipping your supply chain ecosystem with an adaptive and flexible TMS can improve resilience, efficiency, and sustainability.
Here are the top 5 trends in logistics that TMS software adapts to, thereby future-proofing your supply chain.
1. Changing customer demand
How many times have you switched to a different running shoe just because the other one provides more comfort and balance? We bet quite a few times.
Similarly, you need to innovate your offerings to stay ahead of your competitors and retain your customers. This includes providing them with faster, more reliable, and transparent services.
For instance, e-commerce giant Amazon, and now many others, offer same-day delivery, setting them apart. However, faster delivery times must be paired with dependable service. Moreover, customers today want complete visibility of their shipments at all times.
Implementing your business with TMS software can equip you with real-time visibility by using GPS and IoT integration. The intuitive TMS consignee portals, along with a driver app, give your customers real-time visibility into their shipments. These user-friendly platforms allow consignees to easily access shipment details, track deliveries, and communicate directly with service providers.
Designed to work seamlessly across all devices, these portals enhance the customer experience by offering real-time tracking and direct messaging with support, ensuring timely updates and smooth communication throughout the entire delivery process.
AI can enhance predictive ETAs, allowing you to track and trace your shipments with real-time location tracking at the product, SKU, or order level, even for multi-modal shipments. Through a systematic integration with carriers, GPS, ELD, telematics devices, and external visibility partners, you gain detailed insights into each shipment. You can also set up specific events and notifications for key milestones, such as customs clearance, enabling you to monitor progress and respond swiftly to any exceptions. All of this is geo-visualized on a map, powered by AI and machine learning for accurate predictive ETAs.
2. Prolonged disruptions
You would agree that, globally, supply chains have been battling constant disruptions in the form of a pandemic, natural disasters, and geopolitical tensions. These disruptions seem like a never-ending tryst with fate and have revealed the extent of vulnerability that exists in supply chains. Ultimately, they lead to delays, shortages, and higher costs, reducing overall profitability and growth of business.
A TMS becomes invaluable during times of crisis, such as when you need to secure a freight carrier amidst volatile freight rates. Once it is integrated into your ERP or Order Management system, you can automate spot procurement with workflows that use pre-configured RFQ templates, allowing you to quickly place requests in the market. This feature enables you to take advantage of favorable market rates or respond swiftly to expedited dispatch needs.
Additionally, TMS software utilizes machine learning algorithms to analyze historical data and make informed predictions, such as anticipating weather, traffic, or equipment failures. For example, a TMS can dynamically calculate optimal routes in response to changes in traffic or road conditions. With built-in simulation tools, the TMS can recreate scenarios and develop contingency plans, ensuring you maintain operational resilience and flexibility during times of distress.
3. Sustainability and TMS
Worldwide, the focus on sustainability has seen an uptick during the last decade. Everyone is feeling the impact of an increased number of natural disasters and abnormal weather activity. According to Accenture, supply chains are the key to fighting against climate change.
Why? Because they generate around 60% of all carbon emissions globally.
Governments and businesses alike are now enforcing stricter policies on emissions and waste management. Consumers, too, prefer opting for products/services that come from businesses operating sustainably.
A TMS, when integrated with carbon or emission management software, becomes a powerful tool for this goal. It automatically calculates emissions based on factors like fuel consumption and distance traveled, helping you monitor and report emissions for regulatory compliance and sustainability targets.
You can also integrate with your carriers' sustainability data and gain access to detailed emission analytics and insights across your entire supply chain. This allows you to configure these metrics at every stage of your RFQ to the contracting process, enabling you to onboard more sustainability-focused carriers and advance your goals effectively.
4. Rise of AI adoption
AI integration in Transportation Management Systems (TMS) automates complex processes such as carrier selection, demand forecasting, invoice processing and validation, procurement management, and more. For instance, when faced with fluctuating freight rates, an AI-powered TMS can quickly secure the best carriers by analyzing multiple factors such as cost, capacity, and performance. You can respond swiftly to market changes, and ensure that you can manage shipments even in volatile conditions.
AI-driven freight matching algorithms assess factors like shipment size, delivery timelines, and carrier availability to pair each shipment with the most suitable carrier. While, real-time monitoring supports this by tracking shipments as they move through the supply chain, providing updates on their status, and flagging any potential issues, such as delays or route disruptions.
Predictive analytics uses advanced algorithms to analyze historical data, such as past shipment volumes, seasonal trends, and customer demand patterns. It also considers external factors like economic indicators, weather forecasts, and market conditions.
With these forecasts, companies can better plan their resource allocation, ensuring they have the right amount of inventory, vehicles, and staff available when needed. This reduces the risk of overstocking or stockouts and minimizes unnecessary costs.
Additionally, AI simplifies procurement by automating tasks like vendor selection and compliance checks, which can be particularly beneficial during time-sensitive procurement events. AI also enhances invoice processing and dispute resolution, reducing manual errors and speeding up financial workflows.
Through these applications, AI empowers TMS to manage logistics with precision and agility, ultimately supporting better business outcomes.
5. Navigating a connected world
Present-day supply chains are an intricate web of many threads, all of which are inter- and intra-dependent. Every step of navigating this maze requires real-time data, which comes from coordination among multiple stakeholders, systems, and processes. Such interconnectedness, even internal to your business, maintains operational efficiency and agility in operations.
TMS makes communication and data sharing easier by employing an Application Programming Interface (API). These APIs bring various systems (ERPs, WMSs, and CRMs) together, offering a unified view of operations. You can, thus, onboard new functionalities and systems without disruptions.
Moreover, your manual work hours are significantly reduced with automated data exchanges. With APIs that can easily work with third-party systems, TMS software can provide well-documented and comprehensive endpoints for all critical functions. Also, APIs have encryption and authentication protocols that provide an added layer of data security.
By adopting a unified TMS platform with features such as order management, inventory tracking, shipment tracking, and customer service, you can have a single point of control for all logistics activities, simplifying management. All the centralized data and tools allow for collaboration among different departments and stakeholders.
Using blockchain technology, TMS software establishes a secure and transparent platform for tracking and tracing products throughout the supply chain. It generates a tamper-proof and unchangeable record of all product transactions and events, from their origin to their final destination.
Embracing next-gen software solutions, like Pando's AI/ML-enabled multi-modal TMS, isn’t just about keeping up with the latest tech trends; it’s about setting your supply chain up for long-term success. According to G2 reviews, Pando stands out because it’s designed to handle whatever the future throws at you, from unexpected disruptions to rapidly shifting market demands.
Pando’s TMS gives you real-time visibility into every aspect of your supply chain. This means you can make decisions based on up-to-the-minute data, reducing the chances of costly mistakes and boosting overall efficiency.
You can also think ahead with Pando when it comes to sustainability, which is becoming more important every day. The system optimizes your routes and cuts down on fuel consumption, which not only lowers your costs but also helps your business meet increasingly stringent environmental standards. Mayank Pandey, the Wholetime Director at Castrol, reiterates this and praises Pando for driving meaningful changes in their supply chain, driving them towards greater agility and sustainability.
Hopping on Pando’s TMS will help you build robust, adaptable, and sustainable supply chains, ensuring long-term success in a changing world.