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Transportation management systems accurately calculate the customs duty, fees and cesses required for importing and exporting goods in and out of the country. It helps in smooth custom clearance and saves valuable time.<br><br>
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Transportation in supply chain management is a major contributor to the success of a business. It is not only responsible for the movement of goods from one point to another but also acts as a system that monitors every movement of the goods and optimises the processes for enhanced productivity and efficiency. With the increased demand from customers and a rise in e-commerce and cross-country trade, huge supply chains are operational to meet the growing demand of the market. Logistics management is an important part of the supply chain to ensure smooth and economic transportation of goods from suppliers to manufacturers and from there to retailers and end-users. However, with the increase in the volume of goods and the requirement for precision, it is difficult for age-old methods to cope with the current scenario.
Hence there is a need for sophisticated tools to carry out supply chain transportation smoothly. Here, the transportation management system comes into play. What is a Transportation Management System? Transportation Management System is a platform that uses cutting-edge technologies to aid businesses in planning, executing and ensuring the effective use of available resources. It primarily optimises the physical movement of the goods from the point of origin to the final distribution point. These systems also help in documentation and other nitty-gritty of shipment.
Transportation management systems are specialised software that when incorporated into a business provide visibility and control of all day-to-day transportation activities. It makes it easier for businesses to get real-time insights into the running transportation operation and reduces the logistics rates to a great extent by streamlining the processes. These systems are useful especially in the transportation of goods to foreign countries via road, railways, sea or air. The transportation management system is very useful to the entire transportation domain, Here are its top benefits. Logistics Cost Reduction:
Transportation logistics is a rewarding business. Naturally, there is fierce competition for customer acquisition and retention. Giving good service at a minimum cost is the best way to attract customers. Here tools like transportation management systems come in handy. These systems optimise transportation activity in every process and reduce transportation cost for freight. Hence the customers have to pay less for the services and the profitability of the businesses is maintained. Increased Accuracy: The transportation management system monitors the automation of different processes. Maximum activities which were performed manually are now performed automatically with the help of machines and software. Hence there is a reduction in the number of labourers, workers,
operators and managers. Because of negligible human interference, there are no errors and hence there is an increase in accuracy. This accuracy reduces the reworking and wastage of time and saves money. Cargo Tracking: Transportation management systems provide real-time location of the shipment. It gives an idea about the location of the shipment and helps in predicting the time of arrival and planning further transportation logistics. Knowing the exact location of the shipment and transferring that information to the customers increases the transparency and trust between the two parties.
Documentation: Documentation is tedious work, especially for trading between two countries. There are many documents involved in the process. Every document must be accurate and verified by the competent authorities. It is difficult for businesses to allocate a large workforce to prepare the documentation. Giving a contract to a third-party service provider also is a costly affair. Hence it is easy to use transportation management systems that help in preparing the required documents. Customs Clearance: Transportation management systems accurately calculate the customs duty, fees and cesses required for importing and exporting goods in and out of the country. It helps in smooth custom clearance and saves valuable time.
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