How Can Businesses Revolutionize Logistics with Transportation Management Software in USA

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How Can Businesses Revolutionize Logistics with Transportation Management Software in USA

The US logistics industry is in for a major growth phase as the country’s revenue from eCommerce alone is expected to exceed 1.5 trillion dollars by 2027. A recent report states that the North American logistics market will hit the USD 1,636.2 billion mark by 2028. Strong projections force eCommerce businesses to replace their monolithic logistics management methods with automated transportation management software in the USA. 

Further, B2C commerce and cross-border trading are also booming, ultimately leading to an exponential demand for efficient fulfillment and transportation management. Hence, businesses are increasingly looking for ways to keep their companies ahead, reduce logistics costs and generate positive customer experiences.

This is where transportation management solutions come into the picture. Businesses using transportation management software in USA can not only meet customer expectations in the ever-evolving logistics landscape, but they can also reduce their logistics costs. They can improve their logistics transportation and fulfillment by leveraging the smart functionalities offered by these solutions. In this blog, we discuss the challenges that make transportation management functions difficult for logistics managers and how businesses can benefit from transportation management software.

However, before understanding the need for TMS for USA logistics businesses, it is vital to start with the meaning of Transportation Management Software.

What is Transportation Management Software (TMS)?

Transportation Management Software (TMS) is an intelligent cloud-based solution designed to streamline and optimize logistics and transportation processes within the broader scope of supply chain management. This comprehensive system covers various aspects of logistics and transportation, including planning, execution, compliance, documentation, and lifecycle management, ultimately enhancing the overall effectiveness of a company’s logistics operations.

TMS automates existing processes related to logistics transportation, provides valuable insights, and enhances transportation efficiencies. Businesses using transportation management system in USA can save time and reduce costs of logistics transportation, and make better data-driven decisions for both incoming and outgoing shipments.

Key Factors Driving the Need for Transportation Management Software in USA

Shipping Cost

Freight and transportation costs are the primary contributors to logistics costs. The fluctuations in fuel prices make transportation cost reduction challenging. In cost-sensitive business space, enterprises that fail to curb operational costs lose a significant part of their revenues in the long run. On the other hand, TMS solutions help businesses plan the most optimal shipment and vehicle pairings, generate highly efficient logistics routes, and maximize resource utilization, thereby increasing deliveries per trip. 

All this helps reduce the overall logistics transportation costs as well as shipping costs. Further, the advanced transportation management software in USA that come with AI/ML algorithms offers data analytics and generates critical insights to optimize transportation strategies regarding carrier and route selection.

Delivery Speed and Time

At present, customers prioritize their shopping experiences over product features, with 76% of them expecting brands to accommodate their unique delivery demands and 69% seeking Amazon-like experiences. Further, the demand for same-day or next-day deliveries keeps delivery time a significant decision-maker in the customer’s buying life cycle. 

Therefore, the transportation and logistics industry is under constant pressure to deliver products within less time. Features like route planning and optimization, visibility, and tracking can be crucial game changers for eCommerce companies and businesses in general. They can enhance efficiencies, productivity, and customer satisfaction naturally with the inclusion of smart transportation management software.

Centralized Control

Logistics and transportation management professionals deal with multiple parties, which requires a high level of coordination and integration. Smart TMS integrates with existing systems like WMS, ERP, and CMS seamlessly. With smooth orchestration, the new-age TMS software reduces operational silos and offers a granular view to decision-makers that brings required operational agility to the system.

Audits and Billing

Inaccurate billing causes a 10% revenue loss to businesses. In a competitive business landscape, where shippers deal with fuel cost fluctuations, they cannot afford to lose revenue due to billing discrepancies. Further, when it comes to secure and streamlined financial management, such as bulk invoice settlements, automated transaction management, digitized billings, and invoicing, the legacy systems fail to deliver across these expectations. 

On the other hand, businesses using smart transportation management software in US can easily automate and optimize their financial operations, collect all the financial information in one place, and ensure transparent and trustworthy billings.

Artificial Intelligence (AI) for Advanced Decision-Making

AI revolutionizes TMS by enabling predictive analytics, route optimization, and demand forecasting. By processing vast amounts of data in real-time. AI allows logistics managers to make more informed decisions, anticipate disruptions, and adapt to changing field conditions. As a result, businesses can optimize their operations and meet customer expectations with greater accuracy and efficiency.

Machine Learning (ML) for Continuous Improvement

ML is a subset of AI that allows transportation management software to use data analytics for process and performance improvement. For instance, by analyzing historical data regarding sales rush, shippers can identify potential patterns. Moreover, ML algorithms use these patterns in route planning, effective capacity utilization, and identification of possible delays. ML-derived insights highlight the scope of improvements necessary to make logistics operations more agile.

Internet of Things (IoT) for Real-Time Asset Tracking and Monitoring

IoT technology connects physical devices and sensors to the shipments that send data to the central management system, enabling real-time tracking and monitoring of logistics and transportation industry assets. With the integration of IoT, smart transportation management software can gather data from various sources, such as GPS, temperature sensors, and weight sensors, providing valuable insights into asset location, condition, and performance. Logistics heads can use this data to improve fleet management, cargo safety, and operational costs.

Top 5 Transportation Management Software in USA

Here is a list of transportation management software companies in the US that provide TMS systems:

#1 – Shipsy

Shipsy is one of the leading transportation management software in the USA and worldwide. The company offers end-to-end supply chain management and logistics automation solutions that optimize and streamline logistics operations. The transportation management solution comes with intelligent capabilities, which help maximize vehicle capacity utilization, AI-based routing, vendor management, vendor prioritization and ranking, digitized invoicing, and more. 

Businesses can easily generate bulk invoices, schedule trips as per flexible delivery demands from customers, ensure highly optimal first and middle-mile movements, and automate the entire last mile for excellent cost savings.

#2 – Oracle Transportation Management

Oracle’s cloud-based transportation management solution that seamlessly connects the supply chain and manufacturing processes offers real-time oversight, inventory optimization, reduced downtime, accelerated innovation, streamlined procurement, and improved customer satisfaction. Some other prominent features of Oracle TMS include transportation procurement, transportation order management, order and shipment planning, and shipment booking and tendering.

#3 – Descartes Systems

Descartes is another logistics software company in the USA that offers cloud-based logistics and supply chain management solutions combining technology and trade intelligence. Their platform covers B2B connectivity, mobile and telematics, customs compliance, enterprise systems, e-commerce shipping, fulfillment, and global trade data services, facilitating the flow of inventory, information, assets, and personnel.

#4 – Manhattan Associates

Manhattan Associates offers supply chain and omnichannel commerce solutions to optimize sales, streamline workflows, and automate tasks. Their software covers POS, store fulfillment, ordering, customer service, omnichannel inventory, digital supply chain, order management, promotions, contact center, self-service, store inventory, and enterprise-wide store fulfillment.

#5 – JDA Blue Yonder

Blue Yonder offers top-notch supply chain solutions, unifying inventory, order management, and omnichannel fulfillment. Their smart solutions, like Luminate Logistics, provide end-to-end visibility, deep insights, predictive analytics, and AI/ML-based recommendations, helping businesses minimize risks and enhance efficiency.

What Makes Shipsy the Best Choice for Transportation Management Software in USA

Shipsy’s transportation management solutions seamlessly integrate multiple stakeholders and service providers across international and domestic logistics operations. Businesses overcome logistics operational challenges and streamline all transportation activities across departments with a unified dashboard. As a leading SaaS-based logistics software provider, their software empowers organizations to plan, optimize, and execute all transportation operations, enabling them to stay ahead of the curve with: 

  • 18% delivery time saving with route planning and optimization
  • 14% decrease in last-mile delivery costs
  • 31% enhancement  in vehicle capacity utilization
  •  26% decline in delivery NPS
  • 12% saving in overall transportation costs

Reach us and connect with our experts to learn more about transportation management software in USA by scheduling a custom demo today and staying ahead of your competitors.

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