Modern technology has allowed businesses to plan, implement, and optimise their shipment processes. Thanks to Transportation Management Software (TMS), what was once an impossible feat is already a reality to many. However, time and time again, we see businesses implementing TMS make mistakes and struggle to succeed in their TMS project. In this post, we will discuss common TMS implementation mistakes to avoid and the best practices for TMS implementation. 

What Is Logistics and Transport Management?

Although different from each other, logistics and transportation are essential in transporting and distributing goods and shipments. Logistics refers to the procurement, production, and distribution of materials and products to the end-user. A sub-unit of logistics, transportation solely deals with the movement of goods from one point to another.

Transportation and logistics management share a common goal—to move inventory throughout a business’ supply chain efficiently. As a business, you should prioritise transportation and logistics management because it can save you a great deal of time, effort, and money.

What is Transportation Management Software (TMS)?

Imagine being able to access and view your day-to-day transportation operations and documentation and ensure that shipments are delivered to the right location on time. That is just a glimpse of what transportation management software or system (TMS) offers.

Transport and logistics management software is a comprehensive logistics platform that helps you execute the movement of incoming and outgoing goods, streamline shipping processes, and optimise transport operations. The TMS also ensures shipments are properly documented.

All of this leads to more efficient processes, resulting in higher customer satisfaction. The end results? Fewer expenses, more profit, increased company growth.

Mistakes to Avoid When Implementing Transport Management Software

Choosing an inappropriate system

Not all transport and logistics management software have the same TMS features. Depending on your goals, a system may be the best fit for your business today, but not in the next five years or so. TMS vendors see and know the huge opportunity in the market, so many of them develop their systems daily.

The problem lies in whether or not these systems are designed to benefit your business for the longer term. Implementing TMS shouldn’t be expensive, but you want to choose a transport system partner that caters for now and the future.

Look for transport management software Australia that offers functionality your business needs in the present and can develop with your business’s future goals.

Pursuing without a detailed project plan

“If you fail to plan, you plan to fail.”

This adage is popular for all the right reasons. Without an elaborate project plan, implementing TMS would be a bumpy ride. A good project plan should define the steps to take, from the concept of using TMS and not just when the system is already being implemented.

Not Understanding the Impact of TMS on the Business

Integrating TMS into a business is an important decision—one that can affect your business operations and processes. Successful implementation of TMS can drive first-class customer service and bring in more profit for the company.

However, not many companies realise this and think TMS only involves freight system features aimed to automate shipping decisions and improve shipment costs. They don’t always appreciate a TMS’s potential to increase revenue and profits, through improved customer experience. 

Best Practices for TMS Implementation

Set business goals and define an implementation plan

Any plan starts with a goal. In construction, a firm foundation holds a building together and prevents it from collapsing. The same is true in integrating TMS into your business. Too often, businesses jump into the TMS bandwagon right away without understanding their present supply chain processes and reviewing their goals. In the end, they become disappointed and frustrated.

TMS is not just about shipments; it is a way for your business to collaborate with vendors and customers. As such, you should carefully set your goals and detail your implementation plan. Review the present pain points of your supply chain processes—in what areas are you lacking?

Consider Your Team’s Strengths & Weaknesses

TMS implementation is not a one-person job—it is a team effort. You can have the best TMS plan and the most reliable implementation partner, but without a team that understands its strengths and improves its weaknesses, you are bound to fail. Having a strong team is especially important because aside from the TMS project, each member of the team has roles to play in your current business.

Hire a Reliable Implementation Partner

A good, strong team would only take you so far. Due to the demands of the team’s current roles in your business, it can be easy for the members to be distracted, leaving a margin of error in the TMS project. This is especially true in larger TMS deployments.

The best way to cover this gap is to find a reliable implementation partner. A trusted third-party resource offers fresh, professional dynamics to your project. Their talent and expertise in TMS implementation services will help you navigate through and manage your TMS to ensure quicker ROI, lesser delays, and within-the-budget expenses.

Boost Communication

TMS implementation services impact all departments of your business, may it be sales, finance, IT, customer service, or production, among others. As such, communication is crucial for its success. Employees must be educated about how the project will affect their current jobs and the use of new tools. This way, you can determine how well they adapt to the new system and act upon the results.

To promote communication and collaboration, project management software is an effective tool that allows each member of the team to view and manage relevant data. Formal communication and informal exchanges both offer avenues to boost communication within the team. Specifically, informal communication encourages employees to share creative ideas and solutions to issues with TMS.

Why Choose Cario’s Transportation Management Software

Cario understands your need to bring your products to the right customers quickly and efficiently. Its TMS uses advanced technology to help you handle all freight-related processes of your business.

Cario’s Transportation Management Software allows you to choose the best freight carrier every time, offering a way to optimise your freight decisions by setting filters such as lowest price or best-rated carriers. Through a single portal, you can access all your freight carriers, track your shipments in real-time, and view cost insights and real-time analytics.

Cario’s TMS removes manual warehouse operations and digitises your distribution. This means less room for mistakes and more room for efficiency, which saves your business time and money. 

Key Takeaways

Implementing transport management software can significantly impact a company’s revenue and profits. When done incorrectly, issues with TMS can be hard to avoid and costly. When done right, TMS can drive stellar customer service and high returns for your company. Successful TMS implementation starts with crafting a detailed project plan, choosing the right system, and understanding how it can affect the business. Cario, the leading transport management software Australia, offers top functionality with a long-term focus to help your business now and in the future.