Benefits Of Using Freight Management Software

Freight Management

There are many benefits of FMS or a Freight Management Software that manufacturers, distribution companies and anyone who ships freight will realize. These benefits often go way beyond just the cost of shipping freight. If you view your freight and transportation department as more than just an additional cost, then you are thinking in the right direction with respect to how to holistically help your business leverage a FMS for the maximum Return on Interest.

A freight management software (FMS) helps companies move freight from origin to destination efficiently, reliably, and cost effectively. Freight management software encompasses solutions for moving freight in all modes and also includes intermodal movements. The FMS processes include freight transported inbound or outbound, domestically or internationally; using transportation assets owned either by the company or by an outside service provider. The freight managed by a FMS ranges in size from small parcels to bulk commodities.

Perhaps no other supply chain application offers so many ways of saving money or driving value. But that’s not the reason why you should be using a freight management software. No, the main reason companies implement a FMS is to reduce freight spending and expenditure. How does this happen? Well, a FMS achieves these savings based on process enforcement, analytics, and optimization; with virtually no other supply chain application offering so many different and diverse forms of optimization.

There is a focus on the degree to which a TMS can reduce freight spending. Several methods can be used to reduce freight expenditure, with the different “savings buckets” having different levels of savings. Shippers that implement TMS solutions compared to traditional methods of transportation management perform better in terms of service levels and freight savings. On that note, here are a few areas where a FMS will benefit you the most:

  • Increased Customer Service

When you have the ability to use a FMS with reporting and analytics, you are able to see the effect of your choices within that FMS. For example, let’s say you were shipping LTL, then at the time of processing the shipment, you will have a carrier you could choose based on time of transit, cost of shipping and insurance limits.

  • Warehouse Efficiency

So how does a FMS help in warehouse efficiency? The MORE you use your freight management software, the more you reduce the time on freight management, which thereby gives you more time working on other projects such as warehouse duties.

  • New Delivery Capabilities

A robust FMS offers the ability for you to optimize the way you ship. For example, you may want to put together pool point distribution programs or may want to set up inbound programs between multiple locations within your organization, thereby increasing its overall efficiency and cost savings.

  • Inventory Reductions

When a FMS gives you confidence that your customers are receiving their shipments on time, it allows you to plan better for the inventory you have on hand. Having an accurate forecast of your inventory is increasingly important as e-Commerce freight shipping continues to increase in the foreseeable future.