Improving the supply chain with TMS

The bulk distribution sector presents unique challenges due to the specialised handling, equipment, and infrastructure needed to move such goods efficiently. A Transportation Management System (TMS) can be an invaluable tool for overcoming these challenges. TMS solutions can transform the operations of bulk distributors, driving efficiency, reducing costs, and improving overall supply chain performance. These systems provide significant advantages, including shipment visibility, cost management, compliance, carrier management, and technology integration.

Streamlining transportation operations

Many shippers use multiple software tools to manage transportation in their supply chain – leading to fragmented management and inefficiencies. Some even rely on manual processes to plan shipments, from tendering loads to paying invoices. A TMS allows shippers to centralise these processes by incorporating disparate data sources and automating functionality to replace manual or distributed processes. This provides the end-to-end visibility and control needed to optimise logistics operations, regardless of mode – whether it involves rail, truck, barge, or ocean carriers.

Enhanced shipment visibility

One of the major challenges in bulk distribution is the lack of visibility throughout the supply chain. Bulk materials often require specialised modes of transport – such as bulk carriers, railcars, or trucks – which makes real-time tracking difficult without advanced tools. A TMS provides end-to-end shipment visibility, allowing bulk distributors to monitor the progress of their goods from origin to destination.

A TMS enables real-time GPS tracking of shipments. This is especially crucial for bulk goods, as transit disruptions (e.g., port congestion or weather delays) can affect delivery times. For example, a bulk distributor shipping chemicals across international borders can use a TMS to ensure that goods are progressing as planned and adjust if delays occur. Bulk distributors can respond quickly to potential issues such as delays, missed connections, or equipment breakdowns with real-time alerts. This helps prevent cascading delays and reduces the risk of costly penalties, such as demurrage fees for railcars held too long at a terminal.

Accurate inventory tracking is critical for bulk distributors managing large volumes of raw materials. A TMS helps synchronise shipments with production schedules, preventing excess stock and shortages.

Cost control and optimisation

Bulk shipping is expensive, with fluctuating fuel prices, handling fees, and transportation rates all affecting the bottom line. Bulk shippers are scrutinising their logistics spend more closely than ever, seeking to maximise the value they receive from their transportation solutions. A TMS offers several tools to control and optimise costs. A TMS automates the process of gathering and comparing freight rates from different carriers. Bulk distributors often rely on a mix of transportation modes (maritime, rail, and truck) and carriers. A TMS can help identify the most cost-effective options by comparing real-time pricing data.

By analysing shipment data, a TMS can optimise how bulk materials are loaded and transported. For example, the system can suggest ways to consolidate shipments or fill vehicles to their maximum capacity, minimising transportation costs and reducing empty miles.

A TMS can track fuel usage, a significant cost driver for bulk distributors. The system can suggest fuel-efficient transportation strategies by analysing historical fuel data and optimising routes.

Many modern TMS solutions offer data-driven insights to forecast future transportation costs based on market conditions, demand fluctuations, and historical data. Bulk distributors can use these insights to lock in favourable rates and budget more accurately for logistics expenses.

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