There is no doubt that 2020 and so far in 2021 have jeopardized international logistics. The confinements, the decrease in the availability of drivers and administrative personnel for operational tasks and the increase in demand in electronic commerce have been factors that have pushed the sector to restructure its operational and administrative processes to meet the needs of the supply chain. both in B2B and B2C business.
This new scenario has established the need to modernize processes by incorporating technologies that allow the provision of On-Time and In Full services with percentages greater than 90% to comply to the commercial objectives and budgets established for the 2020-2021 financial years.
But how do road freight transport companies face the need to optimize their processes?
In an industry where profit margins are tight and are around between 6% and 9%, increased operating costs and where safety regulations increase, the implementation of < b>computer systems that allow a global view of the exercise for informed decision-making that leads to long-term competitiveness.
It is based on this need that road freight transport companies have begun a modernization process with the incorporation of TMS (Transport Management System), route optimizers and IoT devices, with the aim of automating processes, raising the level of service to its customers and keeping operational costs within healthy parameters for the year.
But how is the incorporation of these technologies evaluated and what is the implementation priority?
The success of any investment project, including a cargo transportation company, lies in having a planning that allows costs of reduced operations and sustained commercial growth and service levels that drive customer and employee loyalty, but one of the big questions that arise in transport companies is when should the decision be made to invest in technology? that allows tractors and trailers to have a low seasonality rate, a balanced distribution of services and asset maintenance?.
As the first step in the modernization of a company, having specialized management software in the operation and in the casuistry of the company is essential when it comes to knowing profitability and it is in this scenario where a TMS takes a leading role.
How to choose a TMS – Transport Management System management software?
The first thing to consider and know when starting the search for a TMS is that a transport management software has 2 approaches, the one related to a merchandise transport company, which seeks to optimize the means (tracts, trailers, trucks, vans, personnel, fuel and tires) and improve the profit margins generated by the commercial work. to the cargo generating companies, which focus on the optimization of transport costs from shipment management to customer relations.
Another important point is to know that the objectives of these types of systems is to give companies planning their operations, reduce reactive action in resolving conflicts or problems, maintain smooth operations through efficient coordination of processes which ultimately improves the customer experience.
Once we understand the objectives of having a TMS within the operation, we must know its scope and benefits, taking into account what are the needs that the transport company wishes to cover.
Among the functionalities of a transport management software we must know that through these solutions it will be possible to count on:
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mso-add-space:auto;text-align:justify;text-indent:-18.0pt;mso-list:l1 level1 lfo1" class="MsoListParagraphCxSpFirst">< /span> Planning and simulation of costs associated with transportation and times necessary for these to be carried out.
Companies may also select the units (tractors, trailers, trucks, etc.) that suit the characteristics of the business they carry out.< /p>
Tracking of transported cargo.
Management of documentation associated with services: invoices, delivery notes, proof of delivery, incidents, etc. Related to the service.
< /span> Fleet balance, through the distribution of merchandise according to routes and characteristics of the floats.
These features will have a significant impact on the results of the operation, which will be reflected in:
< /span> Optimization of the transport budget considering that the cost of transporting a final product is between 4% and 8% of the sale value.
Obtain higher profit margins.
Competitiveness thanks to cost optimization and service levels.
Improvement in communication processes by having a language tool and a single platform between load generators, carriers and customers.
< /span> Comprehensive visibility of the operation through statistics and reports, which allows companies take corrective or planning actions with respect to their processes.
Understanding these variables and the needs that we must cover, we can start the process for the implementation of a TMS in the operation by defining:
< /span> Scope of the project: The Most of the companies that begin the implementation of a TMS in their operations have the wrong vision of the immediate significant results that will be achieved once the project begins, but it is necessary to clarify that the implementation process will have “Victories Early†and long-term results, taking this into account, we can say that the implementation and functionality of over 70% of a TMS is in a minimum period of 1 year, since the process of understanding, training and adaptation of the users may suffer variations in the early stages, due to the fact that the entire organization will have to go through a period of standardization of the operation. For this reason, it is necessary to define priorities in the scope of the project so that it does not affect the operation and cause frustration in the organization.
Selection of provider: In an era where we can find a wide range of providers of this type of products and/or services it is important that the organization carry out a process of investigation of the bidders, knowing and requesting information about the experience of other clients, learning about success stories, realizing that the solutions are adapted to the culture of the company and the market.
Modular solutions: In most cases, companies that seek to implement management software specialized in freight transport seek to have a solution that allows them to improve all areas of the business, but variable consideration must be taken such as the computer systems implemented previously, the capacity of migration of these and the technical and administrative feasibility for the migration.It is for this reason that when a company is in search of a TMS it considers modular and adaptable solutions that allow a harmonious implementation with other technological tools, so that as the level of expertise of the users increases, these tools or other business areas can be incorporated, which can be through integration of these or the migration of the entire operation to the TMS.< /p>
Define a project team: It is recommended that when a company Once you have chosen the solution that suits your needs and have defined the scope of the project, designate an implementation team which will work together with the provider to identify priorities, opportunities for improvement, and communication between users and the provider.< /p>
Training and support: One of the reasons for failure in the implementation of management software is choosing a provider that does not count with a training structure, which includes support material and face-to-face or online training for users, which is aggravated when the provider does not have a support center that supports the organization in resolving doubts and/or errors that they can be experienced in the implementation process or early in the project.
Taking into consideration all the points discussed in this article, those in charge of selecting a supplier will be able to design a plan to achieve the success of the project.
The experience of UNICOM in the design, creation and implementation of specialized management software projects, allows companies to have a specialized solution in transport companies, which provides comprehensive advice to determine, hand in hand with the client, the needs associated with the operation and find an optimal solution that suits the modernization process and the requirements of the Industry 4.0
