Benefits Of Using Freight Management Systems

by | Jun 9, 2016 | Transportation and Logistics

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With the growth of the transportation and freighting industries, companies began to realize that increased complexity demanded improved management systems. Both shippers and transporters concluded that what they both required was a reliable means of ensuring the receiving shipping and delivery of goods of all freight. The creation of these freight management systems (FMS) marked a change in the overall approach to shipping.

The Role of Technology

At the very heart of change was technology. In the form of computers, the more complex systems of transportation became more manageable. It was now easier, with the help of various computer-based or computerized systems to move freight from the shipper to the destination. This was true even when the approach involved more than one mode of transportation or a consolidation of several loads into one. Technology made it easier for large and small companies to ship or transport freight.

The Benefits of Freight Management Systems

The use of a FMS in shipping freight of full (FTL) and partial (LTL) is beneficial in several ways. It not only is able to help a freight company match the best carrier to the best equipment and route, it is also capable of making sure everyone benefits from the best rates possible. The major advantages of FMS include:

 * Improved Communication: Companies that use FMS know where their freight is. This allows them to inform the client where it is and when it will arrive. This creates a closer bond of reliability with clients leading to developing a firm relationship with them which can result in increased contractual delivery agreements

 * Data and Analytics: Using an FMS produces reams of data. This allows you to compile information on your shipping activities. You can gain insight and make changes that will improve your operation

 * Control: FMS can help you exercise better control over the management of your transportation business. When implemented correctly, it will reduce the amount of paperwork and simplify data entry while providing you with more than sufficient information

 * Accounting: By installing the proper FMS, your company can reduce the headaches often associated with accounting. It will centralize all the requisite material such as invoices and make them instantly accessible for various functions. The storage of diverse documents in the system allows for the maintaining of a record of all transactions and communications of all parties involved.

Using a FMS can help improve the overall ability of a transportation to do business in this industry.

Freight Management Systems

With the growing complexity of the transportation industry, it becomes essential to find what methods will give a company an edge. Technology is capable of providing help in this direction. Transportation companies can turn to freight management systems to improve their ability to compete in the current and future marketplace.

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