The Pros And Cons Of Transportation Management Systems

Transportation Management System Considering the main supply chain costs for retailing company such as warehousing, transportation, inventory carrying, customer service, purchasing, damages etc., usually the highest costs are related to the transportation management. In addition, transportation cost has an impact on all the costs that are listed above and integrates all of them to the process that we call supply chain management. Taking into account the example of Home Reno Mart it is obvious to assume that implementing TMS will be very effective and efficient for this company because of a highly competitive market and unique geography of Canada for retailers. Today, with a high level of information technology a lot of companies offer the TMS with features that customers want to have, but overall all of them provide the same benefits for successfully running their businesses. “A TMS is a versatile software system that controls and manages various activities within the transportation channel”(Goldsby et al., 2014, p.119). As a high customer service level is a crucial goal for every company, the TMS makes this goal is achieved. Controlling inbound and outbound …show more content…
The big advantage of the TMS is an integration with systems such as WMS and ERP. On the one hand, collaboration of those systems the company can get much more improvements in operations, visibility, accuracy of the internal and external processes and reducing costs, on the other hand, not all the vendors can offer full integration with its competitors systems. In addition, the company can consider acquiring fully integrated ERP system from one vendor that includes TMS, WMS. Unfortunately, this approach is very expensive and needs time for evaluating all the potential vendors, development of RFI/RFP and collaboration of all the departments in the company as senior managers and