U.S. e-commerce revenue is about $423.3 billion and is steadily climbing. Whether it’s full truckload, less-than-truckload (LTL), or parcel, carriers are being forced to adjust to changes in the retail industry. That being said, many carriers are taking advantage of transportation management software (TMS) to stay on top of freight and shipping and maximize efficiency. If you’re wondering whether or not you need one for your own freight brokerage needs, you should know that there are several signs that indicate the need for this type of software. Keep an eye out for these problems — if you have them, it may be time to consider a new TMS system.
You’re spending too much time on paperwork.
Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network, and it should come as no surprise that there is a lot of paperwork involved with carrying freight. From orders to schedules to payments and more, it can be nearly impossible to stay on top of without a reliable TMS system to automate and expedite these essential processes.
You’re having trouble accurately managing your inventory.
According to Satish Jindel, president of SJ Consulting Group, length of haul has declined. Public truckload carriers report that the average length of haul has decreased by 4% between 2011 and 2016. But regardless of your typical length of haul, it’s not uncommon to experience issues when it comes to accurately managing your inventory. If so, invest in a TMS system to help you stay organized.
You’re struggling with cash flow.
According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States, and even though demand is rising, so is competition. If you’re struggling to stay on top of cash flow, a TMS system can automate essential processes and give you the time you need to grow your business.
According to the U.S. Department of Transportation, the value of freight moved is expected to increase from $882 per ton in 2007 to $1,377 per ton in 2040. Knowing whether or not you could benefit from a TMS is the key to maximizing efficiency. For more information about transportation broker systems, contact 3PL Systems.