The Role Of Transport Management Systems In Logistical Efficiency

951 words - 4 pages

The Role of Transport Management Systems in Logistical Efficiency
Name: William
Date: 19/11/2013

The Role of Transport Management Systems in Logistical Efficiency
Over the years the importance of logistical operations has grown to cover virtually all operations associated with supply chain management for any typical organization. In addition, the use of information and communication (ICT) systems is quickly gaining popularity with any organization which aims at improving its productivity and service delivery. Consequently, logistical functions and specifically transportation management systems (TMSs) are consistently under strain to demonstrate significant contribution towards ...view middle of the document...

In evaluating the overall logistical performance, transportation systems feature virtually on all organizational strategies. In this case, several of the elements that constitute an ideal TMS include:

Automated Electronic Audit Transactions
As opposed to conventional systems which fragment transaction processes between different systems, contemporary TMSs attempt to connect all these systems under one roof (Vanselous, 2013). Likewise, contemporary systems offer great flexibility in terms of merging with other logistical systems such as communication and relationship management systems. A good example is perhaps the use of TMSs to manage transactions between customers and suppliers and forwarding the subsequent results to enterprise resource planning systems (ERPs) and Warehouse Management Systems (WMSs). For instance, when a client orders for a particular product, the system automatically initiates a transaction where the cash is transformed into an order, the supplier gets paid and the product queued for immediate transportation. It is remarkable to note that TMSs work simultaneously with other logistical systems and they are mutually exclusive in enhancing logistical competitiveness as well as efficient administrative performance.

Complete Visibility
While numerous organization managers concur on the significance of logistical systems to support fleet and warehouse operations, a few have complete control of these systems (Vanslous, 2013). According to Vanselous (2013), TMSs are capable of presenting the manager with a complete overview of operations as they occur. This specific characteristic of contemporary TMSs has revolutionized the way managers make decisions and hence realizing transportation efficiency. In addition, this is perhaps one of the main features that is currently trending and prompting more managers to experiment with such systems. For instance, once a transaction is initiated the managers, together with other related controllers are kept updated on the progress and movement of cargo. Likewise, when this kind of visibility is relayed to the final customer it offers an immense and competitive leverage and hence enhanced customer service delivery.

Software-as-a Service (SaaS) Deployment Capabilities
Another reason why TMSs are quickly becoming synonymous...

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