tms-lite traffic solution for logistic professionals

Dec. 2012

Glenn Lanier

Way Cool Trucking

12/19/2012

What is a TMS-Lite system?

What are the features and capabilities of a

TMS-Lite system?

Why choose a TMS-Lite rather than a fully

implemented TMS?

How can a TMS-Lite save my company

money?

Transportation Management System An Alternative Traffic Solution for the Logistics Professionals

2012

2 ©2012 WCT Transportation Management System – Cloud Solutions for Logistic Professionals

Contents Overview

Introduction............................................................................................................................... 3

Basic Capabilities……………………………………………………………………………………………………………………… 3

Expectations of a TMS-Lite.……………………………………………………………………………………………………… 3

Comparison

Capacity…………………………………………………………………………………………………………………………………… 4

Target Client……………………………………………………………………………………………………………………………. 4

Limitations……………………………………………………………………………………………………………………………... 4

Communication

Efficiencies of TMS Communication…………………………………………………………………………………………. 5

Savings

Improve Buying Behavior………………………………………………………………………………………………………… 6

Expected Cost Reduction…………………………………………………………………………………………………………. 6

Automation

Dispatching……………………………………………………………………………………………………………………………… 7

Reporting………………………………………………………………………………………………………………………………… 7

Tracking…………………………………………………………………………………………………………………………………… 8

Optimizing Carrier Capacity

Carrier Network………………………………………………………………………………………………………………………. 9

Implementation

Cloud based software……………………………………………………………………………………………………………. 10

Getting your Carriers involved……………………………………………………………………………………………….. 10

Summary

Want More Information?......................................................................................................... 11


Overview-

A TMS-Lite solution is one that is geared towards gaining key benefits

without the cost and complicated implementation of a full blown

TMS. It is ideal for organizations that have 10 - 5,000 shipments per

month.

A TMS-Lite solution empowers traffic/ logistics managers by better

enabling opportunities in:

o Reducing costs and generating immediate ROI.

o Standardizing processes.

o Increasing logistics savvy without challenging

implementations.

With a TMS-Lite solution, basic implementation costs are typically

zero. The only costs are the internal time that is taken to change your

internal processes and these should be minimal. IT resource

requirements are non-existent unless there is a need to enable

multiple systems to talk to one another. The typical platform is

operated on a secured web (cloud) based system with a SAAS

(software as a service) agreement. Costs associated are typically on a

monthly or per shipment basis.

An organization’s savings are achieved by:

o improving buying efficiencies,

o Enhancing spot bid performance,

o Real time reporting metrics,

o Waste reducing freight billing.

Logistics processes become more standardized and efficient.

Implementation is typically very well received. The users experience

immediate benefits over current methodologies. The web based

environment also provides flexibility to perform necessary tasks when

out of the office.

The purpose of this white paper is to introduce and outline the TMS-

Lite’s features, benefits, limitations, and processes. It also compares

the TMS-Lite to alternative full TMS solutions and outsourced third

party (3PL) solution.

A standard TMS-Lite system is a

perfect alternative to

outsourcing. A TMS-Lite provides

all the essential functions while

maintaining control, and avoiding

unnecessary spend of

alternatives.


Comparison-

A TMS-Lite solution is most appropriate for organizations that have

monthly shipments between 10 and 5,000. Below are some key

advantages of a TMS-Lite system versus a full blown TMS.

TMS-Lite –vs- full TMS: o Primary emphasis is on core high-value functions that prove

immediately beneficial to better empower the Traffic or

Logistics Manager.

o A much lower monthly or per unit cost model with limited if

any upfront fees.

o Zero IT requirements or minimal IT requirements for more

advanced features.

o Implementation in days* not months.

o Due to its simple yet effective core functions,

implementation, training, and adaptation are easy.

TMS-Lite –vs- 3rd party outsourced solution: o Your organization remains in control over your process and

therefore is able to make better decisions for the benefit of

your company.

o Changing outsourced parties can be costly and very time

consuming.

o Price variances for a TMS-Lite provider tend to be very small

versus an outsourced solution.

Limitations-

The following are key limitations of a typical TMS-Lite product versus

a fully blown TMS.

o Minimal integration with respect to inventory management.

o Limited load consolidation features.

*Basic implementation takes approximately 2-5 days. Any additional

requested services may delay implementation.


Communication-

A TMS-Lite solution will greatly reduce unnecessary communications

over email, phone, and fax. The primary advantages include:

TMS-Lite–vs- Email/ Fax o Ease and standardization of carrier information. Email is a bit

more complex especially when coordinating a shipment for

bid. Bids will be returned in a variety of formats whereas a

TMS-Lite solution will streamline into a one.

o Through use of an integrated chat feature, all discussions on a

shipment are kept and tied to that shipment thus eliminating

the need to search for historic email correspondence.

o A TMS-Lite offers a clear and standardized method to provide

information to carriers thus making it easier for carriers to

understand, reply, and communicate quickly and effectively.

o Eliminates the need to create carrier groups and send group

messages. Also eliminates a carrier clicking “reply-to-all” on

sensitive correspondence.

o Carrier rate confirmations are generated directly from the

system. Eliminating the need to manually fax/ email the

information.

TMS-Lite -vs- Phone o Allows Traffic/Logistic Managers to focus on your work at

hand without fielding unnecessary phone calls. Integrated

load by load IM features contained within a TMS-Lite can be

first leveraged before escalating to a telephone conversation.

o Better visibility for carriers. The carriers know immediately

what loads you are working on and what opportunities are

available to them. The carriers also know when a load has

been covered avoiding the dreaded call “did you cover that

yet.”

o Integrated features allow you to continue working even when

you have to step into a meeting or out for an appointment,

thus taking advantage of any and all good opportunities that

may arise.

The TMS-Lite is a simple, value

added solution that is a step up

from managing your business

with phone, email, and

spreadsheets.


Savings-

Historically, one of the main barriers to using a full blown TMS system

was the cost to implement. Although these costs have come down

considerably with the implementation of SAAS solutions, the costs are

still present. The advantage to a TMS-Lite solution is that many

providers offer this at zero implementation cost. The only thing you

pay for is your internal time implementing the system. This allows for

a quick and immediate positive ROI. Organizations that implement a

TMS-Lite can expect to achieve an approximated 15% overall

reduction in costs. These reductions are achieved through:

o Improved buying efficiencies – Through use of the

standardized tools, carriers are able to lower their cost in

doing business and thus put you on a more level playing field

with other companies that have higher purchasing spend.

o Spot bid performance – Better leverage and execution of the

spot bid process aids in selecting the most opportunistic

carrier.

o Reporting – Real time metrics enable the ability to easily

collect, assimilate, and analyze data. Network weak spots are

clearly visible allowing you to target and focus resources in

areas needing improvement.

o Freight billing – Standardization of the process minimizes

issues/ errors and thus eliminating waste.

Options provided for

tendering freight include:

Contract rates, Flat rates,

and the bidding option.

Through a TMS-Lite spot

bidding selection your

selected carriers/brokers

will compete and quote on

your load to get you the

lowest price possible.


Automation-

A TMS-Lite allows you to maintain a quality standard database of your

locations, carriers, and contracts. Sophisticated search tools allow

you to navigate and locate this information efficiently. Specific

advantages include:

1. Fluid communication and informational tools with

locations.

2. Ability to maintain carrier performance levels, insurance

documents, etc.

3. Carrier contracts are fully integrated with the assignment

module insuring agreed parameters are met and rates are

minimized.

4. Instant reporting features to track progress and efficiency.

Dispatch:

With a TMS-Lite you have the ability to store relevant and precise

information in a shipping location database. This makes it easy to

provide carriers with clear and precise dispatch instructions needed to

execute flawlessly. Through this standardization process you benefit

as follows:

o Minimization of issues in which the product is left on the

dock. o Ensure carriers are picking up and delivering to the correct

location. o Minimization of unnecessary accessorial charges. o Minimization of billing errors. o Ability to alert carriers of any special needs/requests at a

customer’s receiving dock.

Reporting -Performance Matrix

Leveraging a TMS-Lite also provides you with access to instant real

time reporting that can be customized to your individual needs. By

having this data close at hand it enhances awareness and alerts you to

key areas of weakness thus allowing instant changes / adjustments.

Some of the most common reporting tools include:

o Carrier on time performance.

o Financial performance over time.

o Lead time versus cost/ carrier performance. Carrier utilization

analysis.


Track and Tracing: o A TMS-Lite should contain web based transportation track

and trace features. The key benefits include the following:

1. Confirmation that your shipments have arrived to the

customer on time.

2. Instant BOL and customer signature reporting if desired.

3. ETA’s to your shipment dock.

4. Notifications of late trucks and issues associated.

5. Historical performance reporting.

o Typically, the information is entered in the system by the

carrier. However, some organizations have leveraged the

web based nature of a TMS-Lite in order to allow their guard

shack to enter the data upon carrier arrival and departure of

their facility (thus negating unnecessary discussions regarding

detention time). Other organizations have also encouraged

their customers to enter the times upon arrival as well at the

receiving location.

After an order is assigned, it is

sent to the track and trace

feature where the status of all

trucks (pick up, delivery, and

in-transit) can easily be viewed.

The alert feature will also

notify for any late or detained

trucks, and send auto

notifications of the truck status

to the customer if desired.


Optimizing Carrier Capacity-

Having the perfect carrier mix is essential to effective traffic

management. A TMS-Lite can assist with this by providing the

following:

1. A unique and confidential carrier database allowing you

to navigate between, primary, secondary, and other

carriers in your network.

2. Resources to help expand your carrier network when

desired.

3. Accurate and clear metrics to assist you in understanding

how your carriers are performing and the ability to target

network weak spots.

4. Fast execution on orders to take advantage of spot

market opportunities.

Carrier Network:

A TMS-Lite solution is geared towards the Customers ability to

leverage their independent carrier base. However, some TMS-Lite

providers allow the access to a network of secondary or tertiary

carriers if desired.


Implementation-

Implementation of you TMS-Lite system is designed to be quick and

easy. Users typically see immediate positive results versus the old

methodology thus embracing this adaptation. The normal transition

process includes:

1. Importation of key items into the TMS-Lite database such

as:

a) Carriers and their contracted rates.

b) Shipping locations and contact information.

2. Toggling general settings to conform to your unique

environment.

3. Engaging with you current carrier base to get them

established on the new system.

4. If desired: Coordinating with your IT department to allow

various systems to pass data to one another.

Cloud-based Software: o A TMS-Lite can be accessed from home, work, and mobile

devices.

o Typically, a TMS-Lite are web (cloud) based systems operating

on a SAAS (software as a service) platform. This platform

allows traffic/ logistics managers to make necessary decisions

when they have to be away from their desk.

Getting Carriers Involved:

Getting your current carrier/3PL base integrated into a system is as

simple as point and click. Once the shippers account is activated the

Traffic Manager can contact the carrier directly or utilize a TMS-Lite

team member to sort that process.

.

Though the use of the web based

feature you can receive necessary

information (even on your mobile

device) and assign carriers to

shipments with the touch of a key.


Summary-

The goal of this White Paper was to introduce a TMS-Lite; a new

management system that empowers traffic and logistics

managers to better perform their role by increasing efficiency and

reducing transportation spend. Hopefully now you have a better

understanding of what a TMS-lite solution is, how it’s structured,

and what some of its benefits and limitations are.

Want More Information?

o If you would like to discuss this topic further, or would like

to demo a TMS-Lite solutions please leave us an inquiry

on our website’s contact page or through our provided

email.

Way Cool Trucking LLC is a Logistics technology solutions provider that offers cloud solutions SAAS TMS-Lite solution to

Logistic Professionals.

For more information regarding Way Cool Trucking LLC and their logistical services please visit

www.WayCoolTrucking.com.

Glenn Lanier

Way Cool Trucking

T: 214-233-8067

E: [email protected]

http://www.waycooltrucking.com/contacts/

http://www.waycooltrucking.com/

mailto:[email protected]

12

Copyright ©2012 WCT Transportation Management System – Cloud Solutions for Logistic

Professionals. All Rights Reserved.

Way Cool Trucking is not responsible for the performance or support of third party services and does not

make any representation or warranties whatsoever regarding quality, or reliability of these provided

carriers/3pl’s.

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