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

Equipment Leasing and Finance Association’s show year-to-date volume up 8% over same period in 2013.

Made up of nine- to 14-year olds, six teams of eight will face off in a series of

Even more than doubles the number of exhibitors and attendees since 2012.

Parent company's Logistics & Automation Division began servicing North American customers in 1962, 12 years before Murata machinery was established.

Article Topics

· TMS · Transportation Management System · IBM · All topics

Comments

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