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Common Issues a Cloud-Based TMS Helps Solve

August 11, 2020
5 min read
Technology Services
Transportation Management
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Cloud-based transportation management systems (TMS) have become more common in the last few years. By the very nature of being hosted in the cloud, they offer shippers access from anywhere, resulting in easier management and speedier freight quoting. Additionally, a cloud-based TMS is always available, and the burden of managing the software, platform, and infrastructure falls on the provider, not the user. The use of TMS, whether cloud-based or on-premise, is most often governed by user-based licensing.

Optimization Across Transportation Modes

The traditional model siloed freight shipments based on the mode. LTL, for example, would require a separate management system than FTL or partial truckload. A cloud-based TMS like Amrate (Amware’s proprietary TMS) offers shippers one platform from which they can quote, manage, and track their freight shipments.

For example, Amrate provides shippers:

  • An easy to use, consolidated freight rate quoting platform
  • A platform that links and supports multiple transportation modes and shipments.
  • The ability to import existing rates or use Amrate’s rates
  • The option to integrate into existing ERP and Inventory management systems.

Cost Savings

Taking a proactive approach to your transportation management can yield lower overall transportation costs as a TMS will provide rates from hundreds of carriers. Not only will there be a hard cost reduction in the shipment itself, but there will also be a soft cost reduction in time spent manually generating individual carrier quotes.  A cloud-based TMS—primarily when used in conjunction with an integrated supplier and carrier network—can provide complete tracking from PO creation to shipment and delivery, making it easier to determine which suppliers offer the best lead times and which carriers, the best rates, and delivery times.

This information helps supply chain managers keep transportation logistics running smoothly. For example, transparency around lead time can result in everything from improved inventory management and stock-outs, to a clearer understanding of freight cost and potential savings. Things to consider include:

  • Products with high delivery frequency
  • Products with high cubic volume
  • Opportunities for shipment consolidation via suppliers in close geographical proximity
  • Requirements such as routing and carrier contracts

Rapid Payback with TMS Implementation

A cloud-based TMS like Amrate offers freight shipping clients a rapid return on investment. Amrate clients are typically realizing savings of 30% or more annually on their freight spend, in large part because of the unique features Amrate offers.

It used to be that companies needed to ship $100M or more to justify the use of a TMS. Today businesses of all sizes, thanks in large part to the ubiquity of cloud-based space software solutions, can dramatically cut freight shipping spend using a TMS. When shippers have over 200+ rates from which to choose, it’s easy to see how the cost of LTL, FTL, and partial truckload shipments will inevitably decrease.

Additionally, for those larger organizations that still need to manage freight shipping in-house, many cloud-based TMS platforms like Amrate are being built using an API. This technology is what allows for significantly improved TMS integration within existing enterprise resource planning (ERP) and warehouse management systems (WMS).  

If you’re a transportation, shipping, or supply chain manager looking for ways to streamline and save on your transportation logistics, consider utilizing a transportation management system through a 3PL.

Amrate is a full-featured cloud-based TMS, offering the best rate for your freight. If you’d like to see just how much you could start saving, click below and request a no strings attached free trial.

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