We call these users the (D.I.Y) Do It Yourself T.M.S shipping managers. The whole idea behind a T.M.S is to automate shipping functions. I started developing T.M.S software for use in worldwide distribution centers in the early 90s. Developing T.M.S software that ports to accounting or ERP software and rates, routes, books, tracks and produces reports on these activities was at the time, the most important development in supply chain logistics.
Since these early days the T.M.S has come along way and has made it easy for anyone, even those with not much experience in Traffic or Freight management to ship freight. In fact the ACCUFRATE TMS even has some extra added features that make it easy to help determine your freight shipping class, something even some seasoned professionals have problems with.
So if managing Freight D.I.Y through the T.M.S is so easy why do so many people use a Managed T.M.S approach to shipping?
I think the answer isn't which is better, each has its own advantages and disadvantages, but which method to use, when. A few months ago I wrote a blog about timing and how logistics and the efficient use of resources are all dependent on timing. It certainly applies here when discussing T.M.S functionality.
We have a number of clients who manage their shipments on their own on a daily basis and some who rely on the Gateway Optimum Transportation staff to do it. When our staff is called upon to make the best decisions for freight, we can provide some insight and alternatives that can save our client money or improve their service over pre-determined rate based routing.
When our clients access ACCUFRATE online and get a quote, book a truck, track their shipment and print out their own Delivery receipts. They have managed the entire process themselves, when we use ACCUFRATE to move shipments for our customer we call this "Managed Transportation" because we are making the decision on the carrier rather than the customer.
This is beneficial to the customer because we may have synergies with freight we are moving that can improve their transit time or decrease their freight spend.
If we have a spot truckload going from California to New York that has 5 pallet spaces open we can add our clients LTL 3 pallet shipment to that order, even if it does not save them money, we know it will not be offloaded and reloaded in trailers multiple times like it would if it were traveling LTL. This minimizes the risk of damage and reduces transit time.
Because this is a spot quote our customer would not see this rate or route in the ACCUFRATE system for them to use, but because we are managing this transaction we knew we had an alternative method available for their shipment.
In some cases we can reduce the cost of a shipment by having transportation synergies for our client that our client cannot see in the TMS. Recently, we had a 26' lift gate truck partially full going from Phoenix to San Jose, CA. We added our clients one pallet and had it lift gate delivered to the customer along the route at a reduced rate from the LTL service saving over $100.
Unfortunately even when you have an advanced TMS like ours that utilizes API functions to fetch carrier data in real time, there is always some offline capacity availability that cant be pre-routed or pre-rated that we here at Gateway Optimum Transportation are using to fulfill other delivery requirements that when we are managing freight we can utilize to benefit our clients.
Nothing beats efficiency, it save time and money and so our clients appreciate the TMS offering we have, allowing them to pull up a quote immediately, auto dispatch trucks and generate bills of lading without waiting for an email, or us to call them back on a freight price, and they enjoy the fact they control the shipping.
We have a number of clients that also utilize the White Glove delivery options we have available to them in the ACCUFRATE system allowing them to pre-rate shipments that have multiple transportation providers. We can offer you one rate for a shipment that will move LTL from your location to a local white glove delivery agent and get delivered by that delivery agent, nationwide, with tracking available online.
A number of our clients utilize both DIY and Managed Transportation. When we provide fulfillment services out of our warehouse for clients that ship out of their own location as well, we take a managed TMS approach and can change the routing of an item to save them time and money.
Whether your interested in a TMS that offers a good selection of carriers and services at a discount that you want to manage yourself or you are looking for a managed Transportation solution for your business, there certainly are advantages to both. If you want more info or want to talk to a Transportation Manager at Gateway Optimum Transportation give us a call Toll Free 855-474-4685
Gateway Optimum transportation is an Asset-Light 3PL based in Tempe, Arizona offering discounted L.T.L, Truckload, And White Glove Delivery Services nationwide through the ACCUFRATE online Transportation Management System (TMS).
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