The Role of Technology in Transportation Management

Technology has upgraded to a huge extent. These days, everything is available with a simple click. One such example of technological advancement is a Transportation Management System (TMS). Back in the days when technology was not enhanced, tasks like transport management was a tedious task.

For Manufacturers and distributors, everyday operations like mapping shipped goods, tracking the goods-in-transit, cargo handling, warehousing, etc., was managed manually. But, with the introduction of technology in this sphere of business, everything became very easy.

That is why a recent survey predicts the growth of the Transportation Management System by a CAGR of 18.2% by the year 2025!

So, what is the exact role of technology in transportation management? Let’s see:

1. Reduces freight charges

One of the major changes that came to light with the introduction of technology was cost-efficiency. For those of you who are unaware, the main aim of transportation management is to decrease transportation cost and increase the delivery reliability of goods. And with the interjection of technology in this task, cost-efficiency is achieved to the maximum level.

It suggests the various techniques and methods through which the company can save money and reduce the cost involved. It also depicts the many ways in which the business can use certain data +efficiently, in order to minimize the cost.

2. Improved customer service             

Another major benefit of using a Transportation Management System like! When you use a technologically improved version of anything, one thing that it ensures is maximum customer satisfaction.

Similarly, when you use a TMS with features like reporting and analytics, you basically improve the level of customer service because these features allow you to check the order status. With TMS in action, you will be able to monitor the on-time location of the shipment, easily access and locate the shipment and be able to tell the distance from the destination.

So, if the customer inquires about their shipment, a Transportation Management System allows you to solve their queries easily, thereby improving the overall customer service.

3. Well-managed cash flows

Again, one of the many pros of technology in transportation management! A Transportation Management System, along with providing various transport management services, also provides the facility of transport accounting.

Earlier, this was managed by the personnel of the business which also meant various errors and misstatements used to occur, and the cash flows were not accurate. With the break of technology, this changed. Features like auditing and consolidation services have improved cash flows subsequently reducing the costs.

Now, with lesser frauds and errors taking place, the cash flows of the company are well-managed with no unnecessary expenses incurring.

4. Fresh delivery capabilities

Technology in almost anything equals a plethora of new opportunities. A good TMS system allows a company to think and create new ways to deliver products.

Transportation Management System enables you to increase the overall efficiency of delivery of goods and saves tons of money. Also, it allows you to create a ‘master bill’ with individual logins that can be accessed by one person.

5. Improves the efficiency of supply chain management

In the case of transportation management, SCM plays a huge role. So much so that Supply Chain Management can be considered as the lifeblood of Transportation Management. Therefore, improving the efficiency of the Supply Chain Management becomes a must if the business wants to avail the benefits of good Transportation Management.

A Transportation Management System ensures this. It provides the business with the ability to track the drivers, inventory, and other processes, thereby improving the efficiency of Supply Chain Management.

Over to you…

The role of technology in transportation management is immense. It not only increases the productivity of a business but also reduces cost and improves overall efficiency. Besides this, there are various other effects that technology has on transportation management.

Here, we listed a few roles of technology in transport management. In a nutshell, it can be said that with the introduction of technology in this business operation, not only manufacturers, traders, or e-commerce websites, but customers have also been highly benefited as it has made the entire process very easy and hassle-free for them. 

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.