Today’s supply chains are fraught with chaos. If you’re overseeing one, I bet you feel pulled in all directions. Supply chain players can seem a lot like warring Greek Gods, looking to a higher power to give them direction, mitigate their disagreements, and just make things work. But even if you had power over thunder and lightning, Zeus would tell you it’s near impossible to officiate from on high without a trusty fleet messenger to coordinate and bring it all together. A formidable force to keep things running, to confirm orders at lightning speed, and to have all the answers.
Sound like a myth? It’s not. It’s a TMS logistics partner.
A supply chain is considered successful only when the final delivery is executed promptly and perfectly, and that can’t happen without carefully managed B2B connections between supply chain nodes. A supply chain also has to be cost-saving, in compliance, and have a simple and repeatable process. This calls for an almost infallible transportation management system (TMS) to act as a swift go-between. As shared by Grand View Research, “The global transportation management system market size was evaluated at USD 13.61 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2030.” With world economies coming together, shippers need both a logistics partner and a cloud-based TMS. So, how do you know when you need to take that step? Look for these 10 signs.
1. You are looking for more efficiency
A state-of-the-art supply chain management system uses several methodologies to make the system foolproof. Technology facilitates efficient routing methods for delivery by considering road and environmental conditions, delivery times, and vehicle capacity. A modern TMS leverages algorithms to optimize freight loads to deliver on time and cut costs. There are ample other examples, but simplicity, optimization, and visibility cover most use cases.
2. Customer service is frazzled by the workload
Great customer service comes from a great plan to handle operations. Suppose there is growing concern that orders will end up late. In such cases, you might need to overhaul your customer service processes, provided the problem is customer service-related. Or you may simply need to rebuild your shipping process. Meanwhile, your staff will feel handicapped if communication is not prompt and accurate, and customer complaints tend to follow. Customers may call to report errors and other operational inefficiencies. A tell-tale sign is that you, the business owner, spend more time putting out fires than expanding your enterprise. Manual intervention in day-to-day operations often leads to poor visibility, thus cascading confusion along the network.
3. Real-time visibility and transparency are significant issues
Have you ever had to break at the last minute while driving or veer your car away to avoid hitting a pothole in your path? What if your steering wheel or brakes did not function at 100% efficiency? What if you’re unsure whether a new lane pattern is going to lead to some off-ramp to the wrong warehouse? What if you have to avoid that new overpass to get to the right yard without turning around 10 miles down the road due to construction?
Those questions may seem silly, but they are the realities you face when trying to manage logistics without a plan. It can feel a lot like navigating an unfamiliar flyover with road construction everywhere, especially when faced with last-minute route changes. Technology enables near-real-time route optimization, saving fuel costs, improving delivery time, and increasing fleet utilization.
4. Business is expanding rapidly
Your supply chain management strategy needs the bandwidth to keep pace with the expansion of your business. A growing business also means mounting operational complexity and higher costs. Earlier iterations of common TMS platforms throughout the market–what helped you get here–may not be enough to reach the next level. Perhaps your existing systems were built in-house, or maybe they lack analytics. There are many potential hiccups you could encounter that are adding to your expenses. However, cloud-based software with API connectivity integrates multiple systems, reduces the workload on your in-house staff, and empowers your team with data. In turn, you can expand while keeping costs and complexity in check.
5. You seem to be losing out to competition
The demands of modern supply chain management are dynamic. Shippers, therefore, need to up their game and add more value for their customers. It is not simply about delivering the products.
Shippers want actionable insights to stay competitive and facilitate informed decisions. Business Intelligence (BI) plays a vital role in making that happen. Data that aid in demand forecasting, inventory management, tracking KPIs, and risk management can put your business ahead of others. A direct outcome of such competitive advantage is enhanced customer satisfaction. BI can also facilitate greater collaboration by providing the same visibility to stakeholders globally, increasing transparency and accuracy along the way.
6. Customers are confused about your process
Confusion leads to uncertainty and frustration in many industries. Complex shipping options, complicated routing guides, unclear tracking systems, and a lack of proper communication can confuse your teams and customers.
If customers constantly ask about delivery times, route changes, and invoice explanations, it is a sure sign that a state-of-the-art TMS is needed. A transparent real-time tracking system can mitigate all these concerns considerably, letting you focus on providing excellent customer service.
7. Your carrier management is all over the place
Strategic selection, negotiation, monitoring, and having better relationships with transportation companies are hallmarks of expert carrier management. End-to-end tracking of the carriers helps take proactive or preventive measures if necessary. Driver behavior can be tracked. A TMS also helps in rate comparison, allowing businesses to choose a cost-effective and appropriate carrier relatively quickly. Contract terms and conditions with carriers can also be integrated into the existing software, ensuring a near-automated process for carrier compliance. Advanced features within a TMS open the doors to better relationships with carriers-the backbone of the supply chain industry.
8. You have no clear Center of Gravity (COG)
A Center of Gravity (COG) shows where your supply chain focal point resides. It is a detailed assessment of all existing warehouses, manufacturing plants, or distribution centers to identify opportunities for optimization. Modernity’s supply chain complexity makes it harder to see where to focus, while a COG analysis helps you find opportunities to cut transportation costs. An efficient logistics partner, with the help of a BI team, can assist your team in conducting a COG analysis. Without a clear COG analysis, the supply chain becomes inefficient, with increased transportation costs, untimely delivery, and suboptimal facility locations.
9. Paperwork is cumbersome and is crucial to global trade
Continuous penalties, fines by customs and security, and canceled or delayed shipments are all symptoms of non-compliance with transportation authorities. Compliance is a time-consuming factor and can be document-heavy by nature. With cloud-based TMS and logistics data, shipping documents such as bills of lading, customs declarations, and certificates of origin can be automatically created. An up-to-date logistics software makes holding carriers accountable to contractual terms and conditions easier. It also provides an infallible record of all the necessary documents for audits and performance measurement across your freight transactions.
10. Risk management and cyber security are compromised
Companies that have already adopted a TMS must consider data security and cyber attacks. Cyber security is more than a technology problem. It touches on multiple aspects of the supply chain, such as vendor management, supply chain continuity, quality, and other factors. Check for providers who develop their software. Ensure data is shared through a secure system, preferably cloud-based and reliant on high-quality APIs. Encryption makes data more secure in the cloud than in a hard drive.
Choose IL2000 as your TMS logistics partner
Each of the ten signs builds on one another, creating a negative feedback loop. Shippers who don’t leverage a TMS logistics partner could soon be left on the side of the road. If you are facing some or all of the above challenges, it is time to switch to a cloud-based, forward-facing TMS service provider. At IL2000, we are continuously building out our TMS and tech capabilities to meet your specific needs. With your Olympian supply chain at the ready, you deliver with Hermes-like speed!