How to justify the cost of a TMS by automating freight audit and payment
Many companies that employ an on-demand transportation management system (TMS) to automate their transportation processes realize double digit savings on their total transportation spend within the first year.
Latest NewsState of Logistics 2016: Pursue mutual benefit Cranes going higher at Port of Oakland’s largest marine terminal Robotic Industries Association announces winners of Engelberger Robotics Awards FedEx, USPS extend air transport contract to 2024 U.S.-NAFTA freight rises for third time in five months in December, reports BTS More News
Many companies that employ an on-demand transportation management system (TMS) to automate their transportation processes realize double digit savings on their total transportation spend within the first year. Better yet, when a TMS is delivered as-a-service (SasS), companies begin reaping potential benefits within weeks, without the high cost of entry or long implementation cycles.
With so little to risk and so much to gain, it would seem C-level decision makers would be quick to adopt TMS technology. But, in fact, almost 40 percent of the companies that stand to benefit most from a TMS actually use one. While some of this can be blamed on recent economic doldrums, the truth is, even in the best of times, transportation departments typically have to fight harder than others for available funds.
One strategy for success is to start small, demonstrate the value of a single module, and allow the savings from the first module to fund the next. In fact, some companies have discovered that the savings from a single TMS module – freight audit and payment (FAP) – can help offset their entire TMS investment. Likewise, companies that already use a TMS are often surprised to discover how much more they can save by adding this single module and bringing freight settlement processes back in house.
Subscribe to Modern Materials Handling Magazine!Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!
Automated Storage on the Move Receiving 101: Setting the Table for Success View More From this Issue