TRANSPORTATION MANAGEMENT SYSTEM
Before the explain transportation management system (TMS), its functions and relationship with logistics; it is better to explain what is transportation and why transportation is important for logistics. Business logistics include material management and physical distribution. Material management is movement and storage of materials into company, and physical distribution refers to storage of finished products and movement to the customers. Basically logistics’ definition show that the logistics and movement of materials/ products relations. Also, other important term is transportation, it can be defined as the physical movement of goods, or people from one ...view middle of the document...
Since the ultimate goal of any successful business is to stay open for a long time, and bring in profit during operation time, a smart businesses would know that a computer and technology would be a great investment when dealing with the transportation management. These systems not only make everything easier for the businesses, but it can also help to improve business services. For example it helps improve customer services. Since the company would be able to track the vehicles and let customers know when their products would be arriving.
Transportation systems offer important tools to maximize the efficiency and reduce costs which are related with the product shipping and logistics. The web site which advise the software (Softwareadvice.com) point that “some of these features include strategic freight sourcing tools, multi-modal planning functionality, route optimization, freight consolidation and dock scheduling.”1
These five main features offer some functionality, automated carrier section is the first one, which helps business to determine the carrier and mode options for each delivery. Second one is shipment consolidation. This function helps business for evaluate all scheduled shipments and helps to organize, create efficient bundles and maximize the load consolidation with each delivery. Route optimization function uses maps, traffics data, transportation costs and modal limitations to make decision for efficient route. Another function is freight estimate optimization. Software will calculate the delivery cost based on weight, mode of shipping, distance and other variables. After this calculation business can get report to determine the most cost efficient ways. Final function is payments, system has accounting modules that help business to control invoices which are shipment related, audit freight bills. This modules reduce payment errors and helps payment settlements.
Figure 1.1 An example of route optimization report.
As we see in figure 1.1 this report show driving directions and alternate directions, total mileage, total time, total stops and total operating cost over the route.
There are different features that provided by several transportation management system providers, and each provider offer their own features, and integration with the firms’ current systems. Infosys is a global leader in consulting, technology, and outsourcing solutions points out that “I2 TMS and Oracle TMS cover a wide range of functionalities and can be considered as leaders in this sector. With respect to Fleet and yard management, Oracle TMS has some capabilities which allow it to be ranked higher as compared to other TMS products. Having spent the last few years working on TMS products (primarily i2 and SAP TM), i2 TMS ranks ahead in terms of various capabilities when compared to the current SAP product. Though yes, as an obvious fact the integration between SAP ERP and SAP TM would be...