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The Advantages of Cloud Based Transportation Management Systems (TMS) for Bulk Liquid Distribution

Posted on Monday July 29, 2019 by April U

TMS is optimizing freight transportation supply chain logistics across regions by: lowering IT costs, reducing transaction costs, optimizing capacity utilization, fostering collaboration, and increasing the dependability, timeliness and reliability of delivery. 

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Technological advances in fleet management in the bulk liquid transportation industry have resulted in rapid and extensive industry evolution. Transportation Management Systems (TMS) benefit  the supply chain and logistics sectors by:

  • Lowering Technology (IT) costs,
  • Reducing transaction costs by automating payments and compliance, 
  • Enabling the optimization of freight transport capacity across regions, 
  • Fostering collaboration for problem solving and Just-in-Time delivery, and 
  • Promoting the dependability and reliability of delivery for the recipient.  

Rising freight volumes from e-commerce and the complications of omni-channel businesses, have made TMS software vital to controlling the risks associated with driver shortages, increasing freight rates and combating congestion and capacity limitations. Now, new cloud-based TMS offer higher levels of efficiency, automation, data consistency and real-time data accessibility for freight shipments including bulk liquid cargo.   

Businesses with complex supply chains frequently encounter hurdles such as deploying product from multiple locations, the compatibility and integration of multiple data management systems, and managing real-time logistical updates. Cloud-based TMS addresses these challenges while improving shipping reliability and customer confidence.    

Benefits of Cloud Based SaaS Models- Lower IT Costs

The fundamental reason for the popularity of cloud-based TMS is that software and data are hosted “in the cloud” and accessed through an internet connection. This means that it is relatively easy and cost-effective to deploy, store and maintain vs. non-cloud based systems. In addition, system-wide updates are faster to deploy and changes may be promulgated automatically.  This eliminates some of the bottlenecks associated with internal IT departments and customer service centers. With a cloud-based TMS, IT concerns such as hardware, storage capacity and security are managed by experts remotely, and may be outsourced, allowing bulk distributors to focus on their core business. Centralizing IT operations also lowers the number of administrators, a contributing factor in lowering the total cost of operations. 

Cost Optimization for Smaller Carriers

Typically, bigger companies utilize economies of scale to give them a cost advantage.  However, cloud-based TMS can provide smaller companies with access to affordable shipping and carrier rates. Thus enabling smaller, more nimble companies pricing which is competitive with established carriers. In addition, transaction costs are streamlined with automated payments to numerous intermediaries. Audits also are completed in less time with automated compliance records and real-time data.       

Continuous Improvement

Continuous improvement is necessary in rapidly evolving fields such as shipping, distribution and logistics. With a cloud-based TMS, implementing improvements in the field and tracking their success requires updates which may be rapidly deployed with code changes and implemented in the field through downloadable Apps.  You can add or remove features with little to no down-time.

Transportation Data Security and Reliability

Safety and data security is extremely Important when you’re moving hazardous chemicals. Fortunately, cloud security is growing. An emphasis has been placed on cybersecurity because information available on the cloud in the wrong hands could be disastrous. Today, cloud servers and data banks have multiple high security measures in place to protect corporate and user information. In addition, user access can be maintained and controlled for security, or expanded to allow for growth and scalability. 

A cloud-based TMS is also more reliable.  Instead of facing downtime and reboots when power outages happen, cloud-based systems have built-in redundancy which allows users to continue operations with minimal downtime once access to the system has been restored.  Remote back-ups also minimize data losses in the event of a natural disaster.

Collaborative Problem Solving  

Efficiency is key in fleet management.  With a cloud-based TMS, a real-time view of your bulk liquid freight is available including the location of each chassis or trailer and it’s progress. When an issue occurs, multiple users have access to the same data to examine the problem and quickly devise a solution.  The use of a cloud-based TMS allows you to improve efficiency by using real-time analytics to track key performance indicators (KPIs) such as accurately predicting when a delivery is needed to replace low inventory.    

Overall, a properly designed and maintained TMS system gives you control over your operations, your IT costs and improves collaboration among employees to meet customer expectations.    

Cloud based transportation management systems (TMS) are evolving to enable the growing consumer demand for faster delivery at lower prices. Like having the right IT solution, having the right equipment for your company is important to keep your bulk liquid freight moving.  Penn Intermodal Leasing LLC has over 20 years of experience in chassis leasing. Contact Penn Intermodal Leasing LLC today to learn more about equipment leasing options.

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