TMS Technology and 3PL Logistics Companies

Why do shippers use a TMS?

Shippers and manufacturers are turning to third-party logistics (3PL) companies armed with cutting-edge technology to revolutionize their transportation spends. By harnessing Transportation Management System (TMS) technology, these 3PLs are aiding businesses streamline their operations, reduce costs, and enhance overall efficiency. In this article, we explore how 3PLs, through their technology capabilities, empower shippers and manufacturers in rate shopping, freight tracking, data management, and offer additional services like freight invoice audit and freight claims management.

Rate Shopping

One of the key benefits of partnering with a 3PL logistics company is the access to advanced technology driven freight management that enables rate shopping. 3PLs have established relationships with a wide network of carriers, which allows them to obtain competitive freight rates. With TMS tools, shippers and manufacturers can compare rates from multiple carriers, analyze service levels, transit times, and make informed decisions based on their specific requirements. By leveraging rate shopping capabilities, businesses can significantly reduce transportation costs while ensuring the timely and efficient movement of goods.

Tracking Freight

Efficient freight tracking is crucial for maintaining visibility and proactively addressing any potential issues. TMS technology employed by 3PLs provides real-time tracking and monitoring of shipments throughout their journey. Shippers and manufacturers can access accurate and up-to-date information on the location, status, and estimated time of arrival of their goods. This level of visibility allows for better production planning, proactive management of raw material delays, and improved customer service. With 3PLs and their TMS tools, businesses can enhance supply chain responsiveness and make timely decisions based on real-time data.

Transportation Data Management

The abundance of data generated throughout the transportation process can be overwhelming for businesses to handle effectively. 3PLs equipped with TMS technology offer robust data management capabilities, allowing shippers and manufacturers to collect, organize, and analyze vast amounts of transportation-related data. This enables them to gain valuable insights into their logistics operations, transportation trends, identify areas for improvement, and optimize their carrier freight spends. By leveraging data-driven decision-making, businesses can drive efficiency, reduce costs, and enhance overall supply chain performance.

Freight Invoice Audit

In addition to rate shopping, freight tracking, and data management, 3PL logistics companies also offer valuable services such as Freight Invoice Audit. Managing freight invoices can be a time-consuming and complex process, prone to errors and inaccuracies. 3PLs leverage their TMS technology to automate the auditing of freight invoices, ensuring accurate billing and eliminating overcharges or discrepancies. This service not only saves businesses valuable time but also helps them identify potential cost-saving opportunities and maintain financial accuracy.

Freight Claims Management

Despite the best efforts of all parties involved, lost or damaged shipments can occur during transit. In such instances, 3PLs play a crucial role in managing freight claims efficiently. Leveraging their expertise and TMS capabilities, 3PLs assist shippers and manufacturers in filing claims, communicating with carriers, and ensuring the timely resolution of issues. By entrusting freight claims management to 3PLs, businesses can minimize disruptions, protect their interests, and focus on core operations.

In an increasingly competitive business landscape, effective transportation management partnerships are essential for shippers and manufacturers to optimize their operations and control costs. Local 3PL logistics companies armed with TMS technology offer a comprehensive suite of solutions for shippers to maximize efficiency, from rate shopping and freight tracking to data management and additional services like Freight Invoice Audit and freight claims management. By partnering with a reliable 3PL that has invested in TMS technology, businesses can leverage advanced analytics to gain control over their supply chain.