Why is Transportation Management Important?


Logistics is one of the most complex areas of business today. To minimize costs and eliminate downtime, you need to automate the process. In this case, transportation software development comes to the rescue. Read more here. This type of software product can be either a simple mobile application or a complete business solution. Modern companies want to take into account all the features of internal processes. Therefore, they order the creation of individual IT solutions. This strategy is always more successful than buying an average product. Flexible settings help to take into account not all the needs of the company. Personal transportation software development is an opportunity to take into account any small details:

  • Goals and objectives of the business;
  • Target audience;
  • Number of departments and employees;
  • Type of leadership;
  • Business growth opportunities;
  • Traffic flows;
  • Internal security policy and much more.

Reality of the 21st century

Without automation, a transport or logistics company is forced to have a huge workflow. The larger the warehouse, the higher the risk of errors. Even more dangerous are logistic mistakes in a company that provides daily long-distance cargo transportation. And in local delivery companies to the door, it is generally impossible to work without automation. Employees lose orders and do not have time to answer phone calls. When using mobile applications, the entire life cycle of an order occurs automatically in the system. Upon completion of the service, the customer is automatically prompted to leave a review. It also provides improved service quality. The management will know their target audience better.


Benefits of a Transportation Management System

To appreciate modern logistics applications, it is imperative to choose a reliable transportation software development company. The best indicator of professionalism is a portfolio. If among the team’s cases you have found a solution close to your wishes, it’s time to discuss the details. You will receive many bonuses from using custom-designed logistics business automation. Among the most important points are the following.

Increased Customer Service


Logistics software development primarily improves the user experience of your customers. Secondly, the flow of customers and site conversion increase. You don’t miss orders and don’t keep customers waiting in line. Even if a call from the manager is required to complete the registration of the order, the client still sees that the system has accepted the order.

You can also monitor all carriers in real time. Customers love the ability to track items in transit. Especially when it comes to international shipping. Moreover, thanks to the feedback after the completion of the service, you will understand with whom it is more profitable to work with. For example, for each delivery, you choose one of ten carriers. You can choose the cheapest and the second most expensive. But if the cheapest carrier is regularly late or inaccurately delivering goods, you will have to reimburse customers for losses. Therefore, it turns out that the second most expensive carrier is cheaper for you.

Many carriers change prices depending on workload, season or time of day. Automated management allows you to track these changes. You can also choose faster and more expensive carriers for urgent orders. Many customers are willing to pay more, but not willing to wait. TMS allows you to offer your customers the largest number of delivery options. It will also help your business grow and develop.

Warehouse Efficiency

One of the biggest costs in logistics is warehousing. Logistics management software development helps optimize planning and budget. Human resource management costs are among the highest. At the same time, automation allows you to optimize the turnover. Therefore, the company does not have to hire extra employees. Automation allows you to make the work process smooth, eliminating processing and downtime.

Logistics applications allow for much more efficient transportation planning. The more goods are in transit, the less storage space is used. If the delivery and transportation system is perfect, you practically don’t need warehouses. The electronic barcode scanning system eliminates the need for paperwork. Ideally, goods can be received from suppliers, barcodes read with a scanner and immediately loaded into the machine for shipment to the final consumer. TMS also allows you to avoid mistakes when receiving goods.

New Delivery Capabilities

The implementation of modern applications allows the customer and supplier to communicate directly. For example, even before the goods arrive at your warehouse, a customer places an order. The customer can choose from several delivery options. These options have different prices depending on the speed. At this moment, the company manager can pre-select the carrier for the required date. This will allow the goods to be delivered to the end consumer faster, bypassing the warehouse of the logistics company.

Inventory Reductions


Inventory planning is one of the most time consuming processes in logistics. Many previous deliveries need to be analyzed. In the past, decisions were made mainly based on experience and intuition. The implementation of TMS allows you to automatically create reports for any period. Deliveries in the past 3, 6 or 12 months will allow for a more accurate forecast for the future. The system will also offer automatic procurement options as developers can implement artificial intelligence. The advantage of such a system is that the longer you use it, the more accurate predictions it makes. At the beginning of using artificial intelligence, it is better for managers to make purchases manually. After a few months, you can set up an automatic replenishment function.

Cash Flow Improvements

There are a lot of cash flows in logistics. Without automation, all these processes provoke the emergence of a huge workflow:

  • Payment for goods from suppliers;
  • Payments to carriers (sometimes by several modes of transport);
  • Payments from clients;
  • Returns to suppliers and returns from customers;
  • Payment of storage costs and payroll to employees.

When automating a business, all these costs are calculated in the system automatically. Also, with international deliveries, you can save on freight charges. The system contains legislative norms for each type of transport and product. Therefore, you will not be mistaken and will pay the minimum taxes within the framework of the law. At the same time, it is important that at the development stage the contractors cooperate with customs specialists.

Logistics and transparency of TMS


The transparency of the management system is an important stage in business control. Management should have access not only to reports, but also to the movement of goods at every stage of the life cycle. TMS also allows you to configure different access levels for:

  • Ordinary employees;
  • Junior managers;
  • Middle managers;
  • Heads of branches;
  • Directors and freelance auditors (for example, during tax audits).