4 Ways Shippers Save Money Using a Transportation Management System (TMS)
As the year comes to a close, shippers are planning for 2020 and setting goals to increase efficiency and cut costs. Ideally shippers have the technology and data to understand how they can improve both, but many don’t.
One of the best ways to start saving money is by implementing a Transportation Management System (TMS) which increases the efficiency of your team and gives shippers valuable insight into spending trends.
Here are 4 ways you can save money by using a TMS.
1. Access the data that impacts costs
Wondering how often your team is tendering last minute loads and how much it’s costing you? One of the benefits of using a TMS platform is that the software tracks data that is often lost when you rely on email and spreadsheets, including response time, rate trends, carriers contacted and more. That means shippers using a TMS have access to all of this data in one place to better understand costs and carrier behavior.
By providing holistic reporting on how consistent a carrier’s rates are or how often they fall off a load, forcing you to spot – shippers are empowered to make more strategic decisions for their team, saving money down the line.
2. Track and prevent extra fees
Transportation Managers are often surprised by the amount of accessorial charges they rack up resulting from detention, layovers and other fees when reviewing their team’s shipping costs.
With a TMS, these charges can easily be tracked and reviewed as loads are created and dispatched so shippers are no longer surprised when the fiscal year ends. The Convoy Connect dashboard allows all team members to easily navigate through loads and view anticipated rates at a glance.
3. Run larger auctions to get the lowest rate in your network
Gone are the days of emailing a mass list of carriers to find coverage, then sifting through responses to find a reasonable rate. By running a spot auction via a TMS you can easily reach out to any carrier in your network, track responses and compare pricing to ensure you’re always selecting the best rate available. In Convoy Connect, you will also receive an instantly bookable rate on your shipments, giving shippers the opportunity to cover their shipments with the click of a button at the market rate.
4. Eliminate inconsistent rates by managing your routing guide
Managing rates and lanes across multiple carriers is difficult when all of this information lives in spreadsheets. Shippers often get frustrated managing their routing guide, trying to reconcile price discrepancies between what they show and what the carrier charges.
With a TMS, shippers can fine-tune their contract rates based on the criteria that matters to them, and clearly reference agreed upon rates to reduce price discrepancies down the line.
Implement Convoy Connect, The Free TMS
Convoy Connect is a free TMS solution that requires no monthly fees or IT support to implement.
Convoy Connect helps shippers save money and manage freight in a simple and intuitive way. In less than 5 minutes, any shipper can log in, create a load and tender shipments to any carrier in their network.