When I first began exploring the idea of implementing a Transportation Management System (TMS) in our operations, I knew there were benefits to be had. But the journey to make it happen, and to realize those benefits, came with its own set of learnings, challenges, and wins that I want to share.
Understanding the Why: My Initial Thoughts on TMS
For those not deeply familiar, a TMS is a computer application designed to streamline and manage transportation operations. It is a key component of supply chain management, and it enhances the efficiency, visibility, and cost-effectiveness of transportation operations. At first glance, it might seem like just another software to manage deliveries, but in reality, it goes far beyond that.
A well-implemented TMS touches every aspect of supply chain management— from optimizing load planning, automatic carrier and service selection, and import/export management to enhancing our fleet service operations.
Before implementation, our transportation planning was a time-consuming manual process. Our team spent hours trying to plan routes, schedule pickups, and monitor delivery statuses. It quickly became clear that a TMS could not only reduce the workload but also help us achieve more accurate delivery performance.
Getting Started: Laying the Groundwork
Implementing TMS was not an overnight decision. I had to ensure that all stakeholders understood the potential impact it would have on our supply chain, including self-service and self-onboarding of clients & retail brands, metrics like delivery performance, real-time insights & tracking on the control tower, and even automated freight settlement and invoicing.
One of the critical steps I took was to involve team members in the selection process, focusing on the functionalities we needed, such as intermodal transportation, connecting stores, warehouses, and shipping locations with carriers, delivery networks, and service providers. First – or final mile – TMS portfolio of carriers comprised all modes and geographies, and inbound and outbound transport management.
Key Benefits I’ve Noticed
Once the TMS was implemented, the benefits started to unfold:
- Improved Efficiency: The system automated a lot of manual tasks. For example, automation for labeling, scheduling transportation, generating shipping documents, and manifesting shipments became seamless. This allowed my team to focus on more strategic aspects of logistics.
- Enhanced Visibility: With TMS, we now had a real-time view of our shipments in the control tower. This transparency improved our customer service by providing accurate delivery status updates and enabled us to proactively manage any potential disruptions.
- Data-Driven Decision Making: TMS offered valuable analytics that helped us assess our performance against key metrics like Delivery Performance to the Original Customer Delivery Date and reducing lead times. We started using this data to fine-tune our transportation strategies, leading to noticeable improvements in efficiency.
- Sustainability Gains: By optimizing routes and load planning, we reduced unnecessary mileage, which positively impacted our carbon footprint. This was a huge win, considering our company’s commitment to sustainability.
Pitfalls to Watch Out For
However, the TMS journey wasn’t without its pitfalls. Here are a few challenges I encountered:
- Integration with Existing Systems: Integrating the TMS with our legacy software was one of the most significant hurdles. It took time and several rounds of testing to ensure a seamless flow of information between the systems. Many companies face challenges in integrating TMS with existing ERP, WMS, or other supply chain systems.
- Training: A TMS is only as good as the people who use it. I underestimated the time it would take to train the team on how to make the most of the system’s functionalities. I learned that investing in comprehensive training upfront is key to success.
- Customization Limits: While a TMS offers many modules, it’s not always a one-size-fits-all solution. We had to work around some limitations in customizing the TMS to meet our unique requirements. This taught me to have a clear understanding of the system’s capabilities and where compromises might need to be made.
- Data Quality: TMS relies heavily on accurate data for optimization. Poor data quality can lead to inefficiencies and incorrect planning.
My Takeaways
Looking back, I can say implementing a TMS was a game-changer for our operations. It required careful planning, communication, and ongoing support to realize its full potential. If you’re considering implementing a TMS, my advice would be to start with a clear understanding of your current processes and identify the key areas where a TMS can provide the most value.
More importantly, involve your team early on and prepare them for the changes a TMS will bring. The insights and efficiencies we’ve gained through our TMS have proven invaluable in optimizing our transportation operations and aligning with our broader supply chain goals.
Feel free to reach out if you’d like to discuss how a TMS can transform your transportation operations—I’d be happy to share more of my experiences.
