Maintaining strong relationships with your clients is crucial for long-term success, and often, it depends on your ability to deliver on time. One tool that is often overlooked for its potential to build and enhance these relationships is a transportation management system (TMS). Transportation management solutions go beyond managing logistics and transportation independently of your operation; instead, they play a pivotal role in building stronger B2B relationships. But how?
By enhancing value exchange, improving customer service, and enabling proactive problem-solving, a world-class TMS creates a foundation of trust and reliability that strengthens customer-seller relationships. For that reason, demand and development of TMS platforms are rising. According to a new report by MarketsandMarkets, the "Transportation Management System Market is expected to reach USD 40.3 billion by 2029 from USD 16.0 billion in 2024, at a CAGR of 20.2% during 2024–2029," highlighting the growing importance and adoption of these systems.
The role of transportation management solutions in building relationships
Transportation management solutions play a vital role in building and strengthening B2B relationships in the following ways:
- Enhancing value exchange: Transportation management solutions enhance value exchange by providing a comprehensive view of the entire transportation process. For example, a company using a TMS can offer their customer better shipping rates by optimizing routes and consolidating shipments, adding mutual benefit. This approach highlights the importance of logistics-a- a-service (LaaS), such as the IL2000 TMS and complete team, that truly makes it more than a single, standalone, or off-the-shelf solution.
- Leveraging data for customer insights: Transportation management solutions collect and analyze data to improve customer experiences. For instance, if a TMS detects frequent delays on certain delivery routes, the company can proactively adjust the routes or notify customers in advance, demonstrating reliability. Business intelligence solutions are only part of the value derived from a fully integrated TMS platform.
- Real-time tracking and visibility: Increased visibility builds trust. Customers can track their shipments in real-time, reducing the need for constant follow-ups and increasing transparency. Imagine a customer waiting for a critical shipment, able to monitor its progress and receive automated notifications about its status, maximizing supply chain visibility.
- Proactive communication: Transportation management solutions allow companies to inform customers of potential issues before they arise. For example, if a TMS predicts a delay due to weather conditions, the company can notify the customer and offer alternative solutions, such as rerouting the shipment or expediting another delivery. Effective managed transportation services facilitate proactive communication, and that is among the leading value-adds of using a TMS in your organization.
- Building trust through data security: Customers need assurance that their data is used responsibly and securely. IL2000 ensures data is utilized strictly for improving logistics services without infringing on privacy. Understanding the crucial keys to choosing a freight SaaS can help in making informed decisions not only as a shipper but as a way of serving up a better customer experience across your organization.
- Improving customer service: Transportation management solutions enhance customer service by integrating various departments, reducing internal silos, and ensuring accountability. For instance, customer service, sales, and logistics can work together seamlessly to provide a unified view of the customer, improving response times and service quality.
Understanding the formulas behind TMS effectiveness
There are two key formulas to help illustrate the value of a TMS in the context of adding value for end-customers, including the following:
Formula 1: Value exchange in B2B relationships
Value Exchange = (Proactive Operational + Organizational Accountability) x Increased Value
This formula underscores how transportation management solutions can enhance value exchange between businesses. Proactive operational and organizational accountability both refer to the steps an organization takes to identify and intervene when a problem, such as a shipping delay, arises. In turn, a TMS increases the overall value exchanged in B2B relationships. For instance, a TMS can optimize shipping routes, reduce costs, and improve delivery times, all of which add significant value for clients.
Formula 2: Enhancing client B2B relationships
Client B2B Enhancement = (Client Experiences + Internal Views + External Views + Data) / Efficient TMS Execution
This formula highlights how a TMS improves customer relationships by leveraging comprehensive data. By integrating customer experiences, internal and external organizational views, and actionable data, and then executing these efficiently, a TMS enhances customer satisfaction and loyalty. For example, real-time tracking and proactive communication about potential delays foster trust and reliability.
In practice, these formulas mean that companies using a TMS can offer better service and more value to their customers. Real-world applications might include:
- Proactive issue resolution: Using data to predict and address potential delays before they affect customers.
- Enhanced visibility: Providing real-time tracking information to customers, reducing their need to follow up and increasing transparency.
- Optimized operations: Streamlining logistics processes to save costs and pass those savings onto customers.
Build better relationships with IL2000’s complete transportation management solutions
Transportation management solutions are more than logistics tools; they are powerful relationship builders. By enhancing value exchange, leveraging data for insights, providing real-time tracking, and proactive communication, transportation management solutions can significantly strengthen B2B relationships. As the logistics industry continues to evolve, forward-thinking companies like IL2000 are using transportation management solutions to build lasting relationships with their clients and well beyond. Get started by connecting with a consulting engagement executive today.