Transportation management systems (TMS) help supply chain managers automate shipping logistics and reduce delays. However, even the best TMS can fail if not integrated correctly into your operations.
In this post, we're going to run through the best practices to consider when making sure that a TMS integrates with your business. The goal is to minimize delays and quicken your ability to benefit from using a TMS to manage shipments, employees, and your carrier network.
First, let's explore the difference between two commonly used software types in supply chain management. Enterprise resource planning (ERP) tools are used for broad management of a company's sales, production, and distribution, among other aspects. Meanwhile, transportation management systems are focused on aspects of transporting freight, such as rate benchmarking, tracking shipments, and discussing bids and information with carriers.
ERPs, out of necessity, come with APIs and direct integrations with other tools to consolidate and monitor data across a wide variety of software focuses.
The best decision a supply chain professional can make is to combine multiple tools to take full advantage of specialized features. Relying solely on one software tool increases risk and limits operational flexibility. Gartner predicts that 70% of implemented ERP initiatives will fail to meet their original goals, and specifically recommends embracing flexible capabilities to combat this. Using multiple tools is one way to achieve this.
To achieve end-to-end supply chain visibility, use a TMS to manage your shipments and carrier networks, and combine it with ERP integration to manage high-level concerns like procurement, risk management, and compliance.
Another type of commonly used software tool is a warehouse management system (WMS). These are more like a TMS than an ERP in that they specialize in one particular aspect of supply chain management: management of your warehouse. This includes monitoring arrivals, inventory accuracy and allocation, and warehouse space utilization rate.
WMS integration connects warehouse-specific tools with other supply chain systems to streamline operations. This includes WMS-TMS integrations as well as WMS-ERP integration.
If you make use of a combined WMS–TMS integration, you’ll gain greater ability to coordinate your warehouse inventory and staff with arriving and departing freight.
Integrating dock management tools, such as Opendock, can further streamline this process by optimizing dock schedules, reducing truck wait times, and improving warehouse utilization. Together, these systems help lower both direct and indirect transportation costs through more efficient shipment planning and execution.
Another digital tool worth highlighting in supply chain management is the eCommerce platform. eCommerce platforms help supply chain management by keeping track of orders, supply and demand, and general distribution of your inventory.
Streamlined eCommerce-TMS integration synchronizes new orders with shipments and changes in the availability of goods. It can even provide trackable data on deliveries to consumers.
Connecting eCommerce platforms to your TMS will allow you to streamline your order fulfillment and increase the transparency of your stock. However, you will either need a TMS with an API that functions directly with these eCommerce platforms, or to use an intermediary tool that can connect both digital tools with or without a TMS API. This reduces manual entry errors and accelerates order fulfillment.
TMS integrations can be complex; careful planning ensures each system contributes effectively to your operations. Below are a few FAQs to keep in mind when trying to make TMS integrations work for your business.
TMS integrations are third-party connections that a transportation management system can leverage to share data and boost visibility across operations. As a result, it streamlines the management of your supply chain.
The TMS integrations you need will depend on your goals and areas of your operations that could be improved through the use of automation. Examples of popular TMS integrations include ERP systems, WMSs, and eCommerce platforms.
Logistics companies need a TMS to improve their ability to track freight, manage carrier bids, and monitor KPIs and performance across lanes. While these things are possible to do manually, businesses are likely to get outpaced and outscaled by business owners who take advantage of digital automation and AI powered tools.
The best TMS solutions simplify integration with existing systems while delivering robust features to optimize routing, mode selection, and carrier coordination. ShipperGuide TMS accomplishes both. Make use of powerful features such as routing guides and mode optimization to improve your operations, or utilize carrier integration as well as ERP and order integration to synchronize your data in real-time. Click here to request a demo of ShipperGuide!