How to justify the cost of a TMS by automating freight audit and payment

image

September 06, 2012 - LM Editorial

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.

image

 

 



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!

Recent Entries

Crown invited me to its flagship service center outside Chicago for a demonstration of their operator and technician training programs. Prepared for plenty of PowerPoints and goofy videos, I instead experienced two full days of hands-on, grease-covered, eye-opening and tremendously exciting education.

PwC CEO survey finds only 19% of top retailers say they can fulfill omni-channel demand profitably.

Seegrid’s former director of development from 2003-2007 returns to the company.

March shipments came in at 988,065, which easily eclipsed February by 24 percent, as well as March 2014 by 19 percent. Panjiva said total first quarter shipments at 2,580,899 were 4 percent ahead of the first quarter of 2014.

Diligent monitoring of battery inventory can cut waste, boost battery performance and lifespan, and increase productivity.

Article Topics

· TMS · Transportation Management System · IBM · All topics

Comments

Post a comment
Commenting is not available in this channel entry.