In today’s world, where logistics has become a key business component, efficient transportation management is a crucial part of successful enterprise work. Traditional methods such as manual route planning and delivery control have become outdated due to the introduction of transportation management system (TMS).
How does TMS increase the business profitability?
1. Route optimization: TMS allows you to plan the optimal delivery routes, saving time and fuel. Reducing fuel costs and increasing drivers’ productivity directly impacts on reducing the overall costs and, accordingly, on increasing the profit. For example, using TMS lets you avoid excessive mileage, resulting in up to 20% of fuel cost savings.
2. Efficient resource management: TMS enables you to use your transport fleet efficiently. Due to automated planning and routing, you can maximize the use of your own and rented transport. For example, choosing the optimal route, considering all factors, allows you to raise the efficiency of vehicles’ use by 15%.
3. Increasing customer satisfaction: By ensuring timely and efficient delivery, you increase customer satisfaction. Satisfied customers mean more repeat orders and positive suggestions that have a direct effect on business profitability. For example, timely delivery with TMS can increase the level of repeat purchases by 25%.
4. Analysis and optimization: TMS provides data access on logistic operations that enables you to analyze and optimize delivery processes in detail. This allows you to make justified strategic decisions aimed at raising the efficiency and increasing the profit. For example, data analysis from TMS permits you to identify the efficient and inefficient aspects of logistic processes and to make the necessary changes that lead to an increase in profit by 10%.
We have surveyed our customers who have been using TMS ANT-Logistics for more than half a year and received the following average figures:
In summary, we can note that the TMS implementation facilitates accurate and competitive logistics, which has a positive impact on the company’s profitability, and most importantly, on the understandable and clear business processes.
What about strategic decisions?
Efficient transportation management not only reduces costs but also plays an essential role in creating competitive advantages. This, in turn, makes it possible to think about increasing manufacturing volumes, expanding delivery geography, and reaching new business heights.
