January 19, 2021

New Technologies

What is TMS and what benefits does it bring to transport companies?

goodloading-what-is-TMS

Transportation management systems are becoming more and more popular. They aim to support companies in planning and optimization of transport in order to reduce costs.

What are transportation management systems?

Transportation management systems are tools implemented in transport and forwarding companies, which facilitate work of supply chain managers. They provide support at each stage of transport – from accepting an order, through planning, monitoring and settlement of transport. The systems are intended to improve business operations and provide more effective customer service.

TMSs gather the necessary data and allow for its management, as well as planning of routes and checking the use of the vehicle fleet. Some systems also offer billing and invoicing functions, which makes them a comprehensive tool that will satisfy all the software requirements of the company. Versatility of transportation management systems results from the possibility of integrating many tools in one place.

TMSs available on the market are provided in the form of a file which should be installed on a computer or using one’s own server or web-based transportation management systems, i.e. accessible from a web browser. The latter are the most popular solutions as they do not require IT knowledge and the whole responsibility for the functioning of the application lies with the company providing the system.

TMS functions:

  • calculation of transport costs
  • transport planning
  • customer service
  • easy communication with the driver
  • route planning and optimization
  • vehicle fleet management
  • monitoring and handling of transport orders
  • integration with other systems, e.g. telematics
  • monitoring of the location of loads using the GPS system
  • organization of loading and unloading
  • access to reports
  • settlement of payment

As not all TMSs offer the same functionalities, before implementing a given system, we need to ensure that it is compliant with the requirements of our company.

Transportation management system – benefits

Reduction of transport costs is the most frequently mentioned benefit of using TMSs. Based on gathered data and its analysis, TMS systems can suggest how to reduce expenditures and optimize transport processes to generate savings.

TMS may prove useful in companies which work with many tools supporting business – route planners, cost calculators, applications for loading optimization and settlements. Transportation management systems can be integrated with other tools to provide users with all the necessary functionalities in one program. It saves time as all data is available in one place, which decreases the risk of errors that may occur during a data transfer from one program to another.

Connection between TMS and telematics systems allows for monitoring of the fleet and provides the system with various data, such as combustion, driving parameters or the driver’s working time. Telematics helps with sending important documentation, and communication with the driver, whereas integration with the GPS system allows for checking the exact location of a load. Providing such data to the system also allows for the analysis of routes in order to optimise them for the next orders, i.e. search for better and more effective routes.

Better customer service is another benefit from TMS. Analysis of established collaborations allows for checking how they went – in terms of a price or timeliness of order execution.

Using transportation management systems helps increase efficiency of the company thanks to automated processes.

Other benefits include:

  • quick access to information, possibility to analyze data in order to improve results
  • management of orders
  • speeding up order processing time
  • smaller risk of error related to the human factor

If TMS is integrated with the Warehouse Management System (WMS), movement of goods between warehouses can be organized more efficiently. It is also possible to view every single item – from the shelf in the warehouse to the exact location during transport.

Integration between TMS and a load planner

With the use of API, a transportation management system can be integrated with Goodloading, a load planning application. In result, the user gains access to functionalities available within the application:
– calculation of free and occupied space,
– the method of arranging loads on a truck or container,
– access to visualization of the prepared project and load animation,
– indication whether the designed project exceeds axle loads.

Use of the well-matched tools allows for a better management of business, increases efficiency, minimizes costs and saves time. If you are looking for a system with the load planner functionality – email us at info@goodloading.com

2020-07-31New TechnologiesAnother month and more news in Goodloading. In July we implemented: 1. Adding a visualization photo to the project in a PDF file. When generating a PDF, you can select the view you want to see in the project. To do this, go to the side panel, click on the PDF tab and then ‘Add photo’. You will then be able to download the PDF with the current visualisation view. 2. In case of containers, the loading summary shows CBM instead of volume. 3. Possibility of displaying visualization on the phone. The link to the visualization is generated in the same way as the link to the project. We also make the latest API fixes, so if you are interested in integrating Goodloading with your system, let us know. We will make the first version available for testing and free of charge to several software providers. We invite you to cooperate with us. [...]
2020-07-06ContainersWhenever it is necessary to carry goods from one continent to another, the importer will need to choose between maritime and aviation transport. Transportation of loads by plane takes much less time than by ship, which constitutes the main advantage of aviation transport over maritime transport. Nevertheless, many importers decide on the latter option. Eurostat data shows that in 2017 the weight of goods carried by sea amounted to 4 billion tons as compared to 16.3 million tons transported by air. Price as the main factor For many importers, price is the most important factor when choosing the means of transport. Carriage of the same loads by air costs several times more. It is difficult to estimate the costs of maritime transport as they depend on various aspects. Weronika Dutkiewicz, the ATC-Cargo Key Account Manager explains: “The three main factors influencing the cost of transport are: INCOTERMS concluded between the manufacturer and the importer. The selected conditions shape and have an impact on transportation and its costs by indicating when the importer’s responsibility begins. The second factor is destination, i.e. location of ports which the load is imported from. The third factor is a type of a load – full container (FCL), less than container (LCL) or requiring a special container.” INCOTERMS determine not only responsibility between the manufacturer and the importer, but also costs incurred by either side. – EXW port of loading – the buyer is obligated to bear all the local costs – export clearance, port and terminal charges as well as cost of transport to the place of destination.– FCA port of loading – the buyer incurs all the local costs, however, the manufacturer takes responsibility for delivery charges. The further process of transport is regulated analogically to EXW terms.– FOB port of loading – the buyer (importer) covers all the costs from the moment of loading goods on a ship.– CIF port of unloading – the seller (exporter) bears the costs applicable up to the moment of arriving at the port of unloading (destination), as well as insurance costs.– CFR port of unloading – the seller (exporter) bears the costs applicable up to the moment of arriving at the port of unloading (destination), excluding insurance. Other INCOTERMS include: FAS, CPT, CIP, DAP, DPU and DDP. All the details regarding the Incoterms are published by the International Chamber of Commerce (ICC). The factor that may also influence the manufacturer’s choice is a country from which goods would be imported. It is related to the possibility of obtaining preferential tariff rates for some goods, applicable within the European Union. As Weronika Dutkiewicz explains, “a preferential tariff rate is applied based on the certificate of origin of a given good, which is defined separately. It is also possible to use a zero tariff rate for goods from less developed countries and regions.” Hand over goods to the sea freight forwarder Transport of goods by sea can be easily handled by the sea freight forwarder, who has a comprehensive knowledge of the applicable provisions and additional regulations. “Forwarders have quick access to information, bookings and available locations of a forwarding company. It is important to choose the partner for cooperation,” says Marina Della Rocca, the Logistics and Administration Coordinator from BVALVE FLOWY SYSTEMS & CONTROLS SLU. When the sea freight forwarder receives an order, he prepares all the documents necessary to execute the order and, therefore, reduces the sender’s paperwork. “Documents to be prepared and responsibility for them depend on the established Incoterms. Within EXW the importer takes care of preparation of all the documents, however, it is the forwarder who will direct him through the whole process. In the case of CIF, the manufacturer will take responsibility for the documentation. Regardless of the selected terms, the forwarder will guide you through the whole process and provide you with the needed information,” adds Marina Della Rocca. The process of maritime transport “The importer requests maritime transport from the specialized forwarding company, which prepares an offer based on the conditions agreed between the manufacturer and the importer, considering all the costs to be incurred by the importer. If the offer is accepted, the importer provides details of the manufacturer, who will be contacted by the forwarding agent operating in his country. The manufacturer reports when his transport will be ready and the agent books a place on the ship. Formal matters in the port of loading take around a week. The next step is a delivery of goods to the port or a warehouse and customs clearance. The detailed process of transport depends on accepted Incoterms. Following the transportation, the goods are unloaded at the port of destination. Next, the importer is responsible for the collection of the goods at the port, customs clearance and delivery to the place of destination,” explains Weronika Dutkiewicz. The process of maritime transport depends on the established conditions. For instance,– EXW – the importer has to collect goods from a warehouse, then deliver them to the designated location at the specified time so that they can be transported by sea.– FCA – when compared with EXW terms, it is the manufacturer who has to deliver goods to the designated place.– FOB – the importer together with the forwarder book a place on the ship, however, it is the seller who must deliver it to the loading place. If the seller is late and does not inform on this fact early, he will incur additional costs related to the necessity of re-booking the place on another ship. According to the FOB terms, it is the importer who may choose a shipowner.– CIF – the manufacturer chooses a ship and date, whereas the importer has to wait until his load reaches the port of destination. Organizing maritime transport is quite a challenge, especially when we do not have a sufficient knowledge of the INCOTERMS rules or particular stages of transport. In this situation it is best to contact the person who will guide you through the whole process and assist with the preparation of relevant documents. [...]
2021-11-09Blog - All about loading in one place8.6 trillion US dollars – that was the value of the global logistics market in the weaker year 2020. The United States generated, almost alone in North America, 20% of this amount during that time. The supply chain’s impact on the country’s GDP has already reached over 10%. Asia and the Pacific earned almost twice the value of America. Europe, which is trying to jump into second place, reached 1.6 trillion. These figures, apart from the scale being hard to imagine, say above all that someone has worked for it.  In Germany only, for which logistics is the largest economic sector, more than 3 million people are employed. It is also the country that is leading the development of infrastructure and technology in our industry. The UK has a similar size of workforce. At the same time, a very high increase in the number of schools with a logistics specialisation has been observed for several years in almost the entire world. What will happen to all these people when the already fashionable and ever-present automation enters the market from all sides? We are, after all, talking about a modest estimated number of more than a hundred million workers worldwide. Warehouse robots can do any job 3-4 times faster than a human with little risk of error  In many cases, the extremely popular TMS class software is capable of replacing a number of activities of the freight forwarder at even shorter times than robots in a warehouse. The popular algorithm assessing technological advances “Will robots take my job” estimates that the occupation described as “Cargo and Freight Agent” is at 97% risk. Decathlon tested drone deliveries in Poland at the beginning of the year, and as of this autumn, 7-Eleven, the US giant, is starting similar tests in Korea. Drivers, in turn, will be replaced by autonomous vehicles, being tested for over a decade. It seems that as logisticians we are at the event horizon and the black hole that will engulf us is called new technologies.  Source: Facebook/Spartaqs Group The world’s greatest logistics challenge Not only Europe has a problem, but as a dense conglomerate of needs, it constitutes a litmus test for transport and warehousing in growing economies. According to calculations by trans.info – a continental service, there is a shortage of 400 000 professional drivers. The situation is most challenging in Poland, the United Kingdom and Germany. Autonomous vehicles have been under discussion for years. In fact, we should all be supporting this technology as one that is safer for health and life. The problem is that we are still talking about the crawling stage.  Shawn Kerrigan from Plus, a US company specialising in the autonomous vehicle experience, makes the current approach clear: “First, you need to develop technology that is much safer than a human driver. Secondly, you need to prove this safety to regulators and the public before implementing it on a large scale.” The first tests have recently been carried out in China on nearly 1,000-mile routes.  The interest is noticeable, but the future is still uncertain. When will we see the first vehicles on American or European roads? Which medium-sized companies will be able to replace their entire fleet with unmanned vehicles? The European climate package mentions a 55% reduction in greenhouse gas emissions by 2030. If this was achieved in 10 years, we would be able to breathe more deeply. For the time being, the profession of a professional driver is not only secure but desirable, and this is unlikely to change in the next decade. Tesco recruits prisoners The age of an average warehouse worker is around 30 years. In Eastern and Central Europe it tends to be slightly higher due to migration – mainly from Ukraine. Amazon is one of the largest employers in this part of the continent and, although it is regarded as an attractive employer by managers in both the US and Europe, the approach to work for manual workers is controversial. It also affects the overall perception of employment in the warehouse, where the workforce is starting to become scarce. While the mentioned migrants are a great support here, in the UK Brexit has caused serious shortages. This is why Tesco has started a pilot scheme to employ prisoners, with the expected displeasure of the rest of the staff.  WMSs present in warehouses allow for more efficient management of operations, but few are able to integrate with robots at every stage. Alibaba, the world’s largest retailer, handled nearly 3 billion shipments in 5 days, tied with Singles’ Day, with the use of robots, but also the support of thousands of people. Completely autonomous warehouses are isolated cases in the world, and they appeared more than a decade ago. Smaller companies still use 100% human power, while the presence of WMS solutions is not yet standard. Alibaba, robots in the warehouse / Source: Business Insider Unwanted forwarder and planner While working with Trimble, a Californian tycoon, we had the opportunity to talk to the owner of a medium-sized company performing international transport. The need to use new technological solutions came by itself when the profits of the company started to fall dramatically. Implementation of TMS allowed to reduce not only the number of employees, but also to organize and control processes, giving a profit of 5%. Further implementations based on the electronic handling of the document workflow saved time and stress in the accounting department, which was responsible for the document mailing process. In this case, we are still talking about savings in the single-digit range. The higher turnover of a transport company supported by such systems certainly reduces the need to hire more staff, yet the capabilities of the person using such support will always be limited. There is a noticeable change in the competences of the forwarder, who in unfortunate cases is a seller of the load. The more serious-minded entrepreneur here sees a supervisor who has soft skills at the level of communication rather than negotiations and, above all, skilfully uses modern tools. Even the extremely popular freight exchanges have been developing extensive communication systems and new modules to automate work for several years. Digital freight forwarding, which has been on the rise for some years now, is an unquestionable help for … the freight forwarder. Thanks to them, repetitive work is replaced by an algorithm which saves time for handling operations or offers, for example, the possibility of tracking the status of a shipment, which was unthinkable only 10 years ago. There is still a long way to go from a few percent technological support to full process automation. Demand for transport is under no doubt  Being the number 1 trend in 2021, e-commerce is doing everything it can to reduce the time needed for the smooth flow of goods. The popularity of online shopping in recent years has reached a growth that effectively affected the prices of IT services. In 2018, Romania has already recorded a 39% increased interest in online transactions, while nearly 30% growth in online sales was recently recorded by the Czech Republic. In Germany 85% of people did e-shopping in 2020. The year 2021 has clearly shown how much more technological innovation we need. This is not because machine capitalism has wiped out the so-called protein element, but because we badly lack this protein. And there we are, with an offer of the software supporting optimal use of cargo space on a semi-trailer, container or pallet, saving up to several dozen of minutes of the logistician’s work, whose work will be made easier by the technology at each stage of the supply chain – whether we are talking about CEP, contract logistics, international transport, forwarding or a warehouse.  [...]

Recent Posts :

2023-09-21LoadingAir cargo pallets differ from the popular types of pallets used in road transport, both in terms of their dimensions and construction. In the article, we present the detailed dimensions of aviation pallets, along with a brief description of their characteristics. [...]
2023-01-02LoadingAir transport is not among the most popular means of transporting cargo. Due to its price, this mode is usually used for carrying special cargo that needs to be delivered quickly and safely from A to B. [...]
2022-12-27Loading / Road TransportModern logistics is a search for savings. If an opportunity to save 1% is found at some stage of the supply chain service, then on a macro level it is said that we are dealing with another revolution. Meanwhile, in the daily work of a freight forwarder or carrier, there are situations in which much… Read more » [...]
2022-10-26New TechnologiesLogistics processes involve so many different activities that five people working as logisticians would not be able to cope with the tasks given to one another. Quite different tools are used by a warehouse, a forwarder or a transport company. Their multiplicity does not make things easy for the logistics teacher. [...]
2022-09-14Blog - All about loading in one placeImagine a task at work involving 43 trillion possible cases, but you ‘only’ need to know 120 algorithms to succeed in solving it. How many people do you know who can solve the Rubik’s cube (because that’s what we’re talking about) in less than 15 seconds? [...]
2023-02-15Blog - All about loading in one placeRail transport has been one of the most popular methods of carrying goods and people for several centuries. However, in the last few decades it seems to have lost its importance. Its value was recognized again when shipping rates increased, the transport of goods by sea became less safe due to congestion in the Suez… Read more » [...]