Subscribe to our free, weekly email newsletter!


How to justify the cost of a TMS by automating freight audit and payment


September 06, 2012

Many companies that employ an on-demand transportation management system (TMS) to automate their transportation processes realize double digit savings on their total transportation spend within the first year. Better yet, when a TMS is delivered as-a-service (SasS), companies begin reaping potential benefits within weeks, without the high cost of entry or long implementation cycles.

With so little to risk and so much to gain, it would seem C-level decision makers would be quick to adopt TMS technology. But, in fact, almost 40 percent of the companies that stand to benefit most from a TMS actually use one. While some of this can be blamed on recent economic doldrums, the truth is, even in the best of times, transportation departments typically have to fight harder than others for available funds.

One strategy for success is to start small, demonstrate the value of a single module, and allow the savings from the first module to fund the next. In fact, some companies have discovered that the savings from a single TMS module – freight audit and payment (FAP) – can help offset their entire TMS investment. Likewise, companies that already use a TMS are often surprised to discover how much more they can save by adding this single module and bringing freight settlement processes back in house.

image

 

 

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The popularity of cloud computing has consumed headlines ranging from fear and doubt, to claims of being the ultimate answer to all software applications in the enterprise. You may be asking yourself, what's the real story? Download the white paper, WMS in the Cloud, today to find out if cloud computing is right for your business.

A well-designed driver wellness program could make the job more attractive and help alleviate driver turnover.

Download this new white paper to understand vital (and complex) customs requirements and competitive strategies for business shipping through the US/Canada border.

The trend of rising weekly diesel prices remains intact, with the Department of Energy’s Energy Information Administration (EIA) reporting this week that the average price per gallon of diesel gasoline increased 1 cent to $2.914 per gallon.

When the United States House of Representatives last week voted extend current law and authorizes surface transportation programs through the end of July by a steep margin, it was widely expected that the United States Senate and follow their lead. That is exactly what happened on Friday, May 22, with the measures headed to President Obama to be signed into law.

Article Topics

· TMS · Transportation Management System · IBM · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA