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


September 06, 2012 - LM Editorial

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.




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

Earlier today, leaders of key House and Senate committees related to transportation said an agreement has been reached for new long-term surface transportation in the form of a bicameral, bipartisan agreement Conference Report for the Fixing America’s Surface Transportation (FAST) Act.

While staving off contraction in the previous four months, manufacturing in November did not grow, according to the most recent edition of the Institute for Supply Management’s (ISM) Manufacturing Report on Business.

Rising Cyber Monday sales numbers continue to demonstrate the ongoing and emerging influence of e-commerce on consumer shopping habits and patterns and subsequently supply chain and logistics operations, too.

Diesel prices fell for the third consecutive week, with the average price per gallon down 2.4 cents to $2.421, according to the Department of Energy’s Energy Information Administration.

The 2015 Pain in the (Supply) Chain survey recently conducted by UPS coincided this year with qualitative interviews of healthcare executives in North America to gain further insights into trends, challenges and opportunities having an impact on healthcare logistics.

Article Topics

· TMS · Transportation Management System · IBM · All topics


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