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 PMI, the ISM’s index to measure growth, fell 1.4 percent to 51.5 (a PMI of 50 or greater represents growth), declining for the fifth straight month since reaching 57.9 in October 2014. And it is 4 percent below the 12-month average of 55.5. The March PMI is at its lowest level since May 2013’s 50.1.

How the food giants integrate supply chain operations is one of the most interesting components of the recently-announced merger between H.J. Heinz Co. and The Kraft Foods Group.

The new online offering is entitled “Vessels at a Glance” and is comprised of a daily update that shows all vessels at berth and anchor within POLB, as well as the Port of Los Angeles (POLA). It also includes information relating to vessel arrival and departure dates and length of stay in Long Beach, too, along with weekly updated charts that show the number of vessels at anchor at POLB and POLA that POLB officials said illustrate trends occurring over the last six months.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in January dropped 1.2 percent to $89.3 billion.

Download our new white paper, "The ABCs of HST: Understanding the Harmonized System of Tariffs," for insights and explanations of the complex cross-border classification codes.

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