What can you do in 23 years? Can you make a difference in the lives of billions of people? Can you create an idea that changes the face of the earth? Can you build a business that generates billions of dollars in revenue every year? Jeff Bezos did.
He created Amazon, the world’s largest e-commerce retailer, and changed how the world perceives the supply chain. How? By offering 1 & 2-day delivery of products. Doesn’t seem like a big deal, but the biggest players in e-commerce are struggling to do exactly that. For a short duration in delivery-time is perhaps the strongest way to gauge the efficiency of e-commerce fulfilment. And the only way to achieve it is by embracing technology across the final leg – delivery. That’s how Bezos did it, and the technology we’re talking about is TMS or Transportation Management System.
What is TMS?
A software that interacts with the company’s order management system (OMS), and the warehouse management system (WMS). Think of it as an arm that coordinates all the operations across the e-commerce firm, combines the data, and provides tailor-made transportation solutions. Long story short, it moves a package from point A to point B in the most efficient way possible. Its benefits will paint a clearer picture:
Decreasing error with automation
Too often, repetitiveness in small task often leads to errors. These errors can creep into deliveries and lead to huge losses and even credibility. However, automating menial tasks can help reduce these errors and even free up man-power as a resource.
Ease in managing inventory
When there are error-free & timely deliveries, it allows the company to plan out their inventory more efficiently. The focus shifts from preparing for contingencies to planning for expansion. It enables warehouses to come with high-accuracy estimates.
The extra-control over stock movement allows companies to give benefits in terms of flexibility. It allows them to pick convenient time slots, request for special features and get a slightly more customized delivery experience. Plus, the timely deliveries are another bonus.
More focus on warehouse management
The warehouse is where all your business’ magic happens. But the high-intensity of the logistics business doesn’t allow company heads to give the attention warehouse management needs. With TMS managing the delivery completely, it allows executives to spend time on streamlining warehouse processes.
Of course, the most important one is the positive impact it has on revenues. It cuts down costs incurred due to incorrect deliveries and puts an eye on financial irregularities. A company can save 2-5% of their freight bill by scrutinising financial discrepancies.
The key to staying competitive in this ruthless market and keeping pace with giants like Amazon is technology. It’s essential that a company’s processes are constructed in a manner that allow easy adaption of technology. That’s exactly what the best logistics companies like DTDC bring to the table.