TMS integrations refer to the process of connecting a TMS with other digital platforms to maximize the efficiency of supply chain operations.
For example, consider Freightify’s RMS . Any homegrown TMS system can streamline rate management with third-party systems and establish an error-free rate calculation process using Freight Rate API. Procurement managers can acquire real-time freight rates and align them with shipments, eliminating the process of manual comparison and input of rates, saving manual effort, and minimizing errors.
What systems are commonly used to integrate with TMS? Logistics software, if integrated with a TMS, can reduce bottlenecks and optimize the end-to-end shipment process. A few such TMS integrations are discussed below.
Rate Management Systems A freight rate management system ensures businesses get the best and most accurate rates when choosing a transport operator. Integrating RMS with TMS can significantly improve the cost efficiency of supply chain operations in several ways. The latest carrier rates and tariffs are automatically synchronized across both systems. Billing errors and discrepancies can be identified early on, resulting in significant cost recovery and preventing overpayments.
Access to historical rate data can assist in informed carrier negotiations and secure better rates. Data from rate analysis can benefit procurement managers by helping them predict market trends and make informed decisions.When data flows automatically via TMS integrations, the chances of human errors due to manual data entry can be minimized, and manual processes such as rate lookup, booking, and invoice reconciliation can be streamlined.
Supply Chain Visibility Software TMS integrations with visibility software can provide real-time tracking data such as shipment status, location, and ETA. This information can be used to update stakeholders across departments in areas such as sales, procurement, and operations. It can also be used to monitor risk factors such as weather conditions, geopolitical events, and market trends. All this can help identify potential risks and plan for proactive decision-making and risk management.
Warehouse Management Systems Integrating WMS with TMS can synchronize real-time inventory data to reflect accurate stock levels and determine availability, assisting route optimization and delivery schedules. This helps the procurement team coordinate picking and staging activities, streamline operations, and accelerate order processing times.
TMS-WMS integrations can be especially helpful to sourcing teams, providing them with tools and insights to keep themselves updated with inventory data, aid in decision-making, and enhance overall procurement performance.
Once the shipment is delivered, the TMS sends a confirmation notification back to the WMS, which updates the inventory levels. This continuous loop ensures that operators always have an accurate view of stock levels, enabling them to make better decisions and enhancing the overall efficiency of procurement operations.
Inventory Management Systems Synchronized inventory data across TMS and inventory systems helps maintain optimal stock levels. This reduces the risk of loss due to overstocking and stockouts, leading to cost savings. It also improves the efficiency of load planning, picking, and packing activities.
Accurate inventory data synchronized with the TMS system contributes to achieving shipping milestones in time and improving delivery times. Order details related to quantities and special handling requirements are also accurately updated to ensure a smooth shipping process.
ERP TMS integrations with ERP systems can facilitate the unification of data across different departments, creating a single source of truth for financial, operational, and logistical data. Data synchronization across TMS and ERP systems can lead to fast and error-free execution of business processes. This can minimize the time required for manual data entry and data fetching across systems, resulting in improved operational efficiency.
Additionally, TMS integrations with ERP can facilitate more flexibility and better scalability. Changes such as increased order volumes and new shipping rules can effortlessly be configured with the existing business workflows and streamline expansion processes.
CRM CRM systems can feed TMS with the latest customer data, including customer profiles, contact information, and preferences. The updated details ensure that customers receive real-time updates through automated notifications regarding order shipping, shipment tracking, delivery timelines, and delays.
Integrated analytics insights derived from TMS and CRM systems, such as order patterns, can be used to gain insights into customer behavior, which can be used to identify areas to improve the quality of customer services. Data from CRM analysis dashboards can facilitate targeted marketing and quoting. Sales teams can use customer shipping data to enhance sales forecasting and demand planning. Customer feedback can also be used to tailor marketing campaigns to target niche customers. Challenges and Considerations The process of integrating segregated systems, such as TMS integrations, presents several challenges that need to be addressed to ensure a smooth transition.
Integration Complexity Software complexity is one of the most important considerations during TMS integrations. Systems such as ERP, RMS, and WMS use different data formats to suit their protocols and requirements. The technologies they use to communicate with different systems also vary, which poses an additional challenge with TMS integrations.
Ensuring data quality is just as crucial as data format in maintaining consistency across systems that integrate with TMS. An added layer of data security, especially during the transmission of sensitive data such as customers' financial details, requires proper encryption, decryption, and authorization checks during TMS integrations. These include multi-factor authentication (MFAs) during access to sensitive data, compliance with global data protection regulations (GDPR), using SSL to encrypt communication between applications, etc.
Compliance with industry and trade regulations, such as customs documentation, further adds to the complexity of the integration process. These regulations are updated frequently depending on the socio-political climate of the world and additional resources to ensure that the system is updated with the latest compliance data that needs to be put in place.
Cost and Resource Allocation Cost and resource requirements during both the initial implementation and ongoing maintenance phase are important to consider when implementing TMS integrations.
The initial costs include the cost of buying the software, professional consultancy, infrastructure costs for hardware, servers, and networking equipment for in-premise deployment, and subscription costs for cloud-based deployments. Once integrated, migrating the existing data can incur additional charges, depending on the complexity of the data involved. Human resource allocation cost is also a consideration during cost allocation. Collaboration across various departments requires the hiring and deployment of staff, such as IT maintenance, business analysts, and data experts. Complex integrations also increase dependency on the IT team, which redirects their resources from their core tasks. Once implemented, there is a periodic maintenance cost associated with software updates, patches, and security enhancements. The ongoing post-deployment phase requires keeping in place a customer service/internal/external help desk, which contributes to a significant portion of the post-deployment maintenance charges to keep the softwares functioning. Change Management Formulating a change management strategy for TMS integrations begins with creating a shared understanding of the purpose and goals behind the integration process for the stakeholders. This can be followed by communicating with employees, keeping them informed of the timelines, progress, and upcoming changes to their work. Transparent communication helps build trust and make the integration process smooth and effective.
During the testing phase, real-time testing can begin with a small group of users, which can help to identify technical issues and gain useful user feedback before the integrated TMS is fully deployed.
Once deployed, providing training programs, materials, and resources for the existing employees helps to adapt. It also paves the way to establish a digitally reinforced supply chain workflow in line with the newly integrated system.
FAQS What is WMS and TMS? TMS (Transportation Management System) helps businesses manage the various processes involved in the shipping of goods from source to destination. WMS (Warehouse Management System) helps businesses exercise better control over their warehouse data and operations.
Integrating WMS with TMS can add to the efficiency of supply chain operations through improved warehouse operations.
TMS integrations refer to the process of connecting a TMS system with other digital systems to maximize the use of digital logistics systems and the efficiency of supply chain operations.
ERP systems form the backbone of a business, containing all the tools and processes required to run it. TMS integrations with ERP systems can streamline processes, provide end-to-end visibility of business operations, and thus contribute to enhancing supply chain operations.
