TMS, RLG and ROI – A Winning Logistics Relationship

Transportation Management Systems are always a wise investment, but a global pandemic has put the many benefits into perspective.

We’ve been keeping a close eye on the developing COVID-19 crisis. The pandemic has put a spotlight on just how interconnected the world is, and no sector has come under more scrutiny or been more heavily impacted than transport logistics.

“Where are my items now? How quickly can we get them? What are the latest updates enroute?” These and many other demanding questions will be familiar if your product or service is deemed essential during the coronavirus; a classification that only has general guidelines at the moment (see page 5).

Those businesses still operating and with a Transportation Management System (TMS) in place can answer crucial queries from partners and customers. Those without a TMS are just another underinformed voice in the panic.

In today's blog, we’ll talk about the economic effects of a TMS, including:

• How a TMS provides peace of mind for shippers, partners and customers

• Why even a global pandemic can’t impact TMS performance

• The Return on Investment (ROI) of TMS, ranked

• How RLG can put the power of our state-of-the-art TMS at your disposal

How a TMS provides peace of mind for shippers, partners and customers

They say COVID-19 will forever alter the logistics landscape. Perhaps, but that legacy will highlight the twin factors successful logistics have always hinged on: The flow of information and the ability to be proactive with that data.

Providing actionable logistics data on demand will be key in determining which operations weather the current climate. At the best of times, your customers and logistics partners want 24/7 information on who, what, where and when. Today, TMS data offers the kind of transparency people need to feel not only connected to their purchases but comfortable and secure during a global pandemic.

The increased confidence that comes from consolidated TMS information is a benefit that businesses can pass along to partners and customers. Companies that can tell their customers who’s carrying what to where and when it will arrive will provide a rock of reliability that hose customers will remember when the crisis passes.

Why even a global pandemic can’t downgrade TMS performance

Any supply chain manager will confirm that service disruptions are perennial, and that makes information pivotal for performance. Today, that is a truth that’s hitting hard. The Institute for Supply Management (ISM) recently revealed that 95% of companies are predicting COVID-19 related disruptions, up from 80% only the previous month.

While many logistics processes are currently disrupted, if not completely sidelined, part of what makes a TMS worthwhile is that it helps keep shipment moving around disruptions. This makes it not only a robust tool in any logistics environment but also, in the face of COVID-19, one that is arguably more effective than ever.

A TMS can relay vital information like route disruptions, delays, carrier/partner suitability for the job and other mission-critical factors so shippers can make better short and long-term decisions. In today’s climate, there is so much route-related data being sent and received (now compounded with pandemic updates) that only a well-calibrated TMS can process it.

Data that dynamically updates your business on potential and actual disruptions enables you to find solutions fast. Making a TMS part of your logistics operation today will provide increasing ROI and flexibility while other tools and competitors are paralyzed by the pandemic.

The ROI of TMS ranked

A TMS provides certainty in uncertain times and perpetual ROI for businesses smart enough to leverage its power. They are effectively timeless investments — one that’s not only virus-proof but also future-proof.

Even in the earliest days of TMS adoption, the ROI across logistics was very significant. One of the biggest benefits was general improvement in operational efficiency, which could be as high as 30%, while areas like carrier consolidation and LTL saw up to 20% return. Improved negotiating power thanks to TMS data ranked third, providing up to a 10% ROI.

Other essential logistics functions, like audits and carrier decisions, also improved. Today, with TMS technology rapidly improving due to advances like Cloud connectivity, the potential ROI of TMS has only increased, as has the pool of businesses able to use them.

In fact, more recent reports have shown that ROI is the driving factor behind widespread TMS adoption, a market set to hit $30 billion in the next 5 years. Whether your operation is small or large, now is the time to implement this technology.

RLG puts a state-of-the-art TMS at your disposal

Combining the practical expertise of Resource Logistics Group with our digital TMS powered by MercuryGate, creates a winning logistics relationship. We help our customers reap their share of ROI and provide network visualization that keeps them in constant contact with their operations.

Speak with us and we will make sure our TMS and your operations form the perfect team. You’ve never have been so connected to the world and how your business moves within it.

Resource Logistics Group provides transportation and logistics advice combined with professional services and state-of-the-art technology. From contract negotiations to easing back office burdens, we are your ally in excellence. Connect with us on our contact page for a free benchmarking analysis.