"The Importance of TMS Within e-commerce"
If you're still ignoring e-commerce, you’re probably out of business by now. And for those organizations remaining, the real and resulting impacts of e-commerce have touched every facet of their supply chain. The good news is that on the transportation side of e-commerce–namely fast fulfillment and rapid delivery–companies can use supply chain tools to distinguish themselves even further and add to the bottom line in the process.
B2B e-commerce sales are on track to surpass $1 trillion by 2020, Forrester reports, up from $305 billion in 2014. As manufacturers, distributors, and retailers clamor to respond to this shift, the importance of a robust TMS (transportation management system) becomes crucial for managing customer expectations and keeping fulfillment and delivery costs in check. For instance, smaller orders and the expectations of fast delivery times can quickly drive up costs; but a TMS built for today’s environment will look at all of the shipments and find the best carrier and/or mode based on the actual need. It will leverage optimization and the use of all available modes, including pool distribution, multi-stop TL and LTL, to find the most cost-effective way to deliver freight.
A recent study conducted by Peerless Research Group (PRG) on behalf of Logistics Management and 3Gtms, a leading TMS provider, closely examined how companies are handling their freight operations and leveraging transportation management system solutions to optimize–and capitalize on–e-commerce operations.