How Does a TMS Minimize the Impact of Supply Chain Disruptions?
Trucking and freight companies are a key link in the supply chain and many companies are faced with a wealth of challenges. Key challenges presented by the supply chain can include high driver turnover rates, evolving emissions laws, a lack of integrated technology, high insurance costs, and more — but technology like a high-quality Transportation Management System (TMS) may be the solution. To help illustrate why a TMS might be the right fit for your freight company, we have created this overview to answer questions like — how does a TMS minimize the impact of supply chain disruptions?
CUSTOMER SUCCESS: How TransPlus TMS Increased CMW Express Productivity by 30%
5 Ways Supply Chain Disruptions Impact Freight Companies with TMS Solutions
Supply chain volatility has shifted from a once-in-awhile pain to a constant reality for freight companies. From unpredictable weather and labor bottlenecks to global geopolitical and economic shifts, these supply chain disruptions have a ripple effect across transportation networks. Industry data highlights the heavy financial weight of these challenges. Major supply chain disruptions that last a month or longer hit companies an average of every 3.7 years and 94% of respondents to industry surveys reported budget overruns due to operational disruptions. In the United States, business logistics costs have surged to $2.58 trillion.
When external challenges and disruptions impact your bottom line, having an advanced Transportation Management System (TMS) in place serves as your front-line defense, allowing freight carriers and brokers to absorb shocks, protect profit margins, and keep freight moving smoothly.
Here is a better look at how supply chain disruptions impact freight carriers and how a Transportation Management System — like TransPlus TMS — can minimize the impact of these disruptions:
What Do You Do When the Supply Chain is Disrupted?
Find out how TransPlus TMS can help you minimize the impact of supply chain disruptions.
1. Higher Operating Costs
Unplanned detours, prolonged idle times at busy loading docks, and sudden spikes in diesel fuel prices quickly erode per-trip profit margins. When unexpected delays happen, carriers regularly have to absorb unbudgeted driver pay, emergency routing costs, and excessive fuel burn without an easy way to bill back these expenses.
TMS Solution: Real-Time Expense Tracking and Trip Optimization
TransPlus TMS helps address operating costs by automating load evaluation, fuel data imports, and expense tracking directly within its trip-planning boards. By quickly calculating fuel burn, driver pay rates, and trip routing expenses in real time, a Transportation Management System gives companies the ability to eliminate empty miles and protect profit margins on every load.
2. Fluctuating Schedules
Port congestion, traffic delays, and last-minute load cancellations can create a domino effect that has a real-world impact on tight pickup and delivery windows. Dispatchers left using spreadsheets or fragmented data systems may struggle to communicate updated delivery expectations, leading to penalty fees in addition to losing trust with customers.
TMS Solution: Telematics Integration and Driver Communication
A TMS platform delivers real-time position plotting and enhanced visibility of trucks, trailers, and active shipments to keep schedules intact. Integrations with leading telematics software and ELD providers paired with driver communication tools directly on the trip board give dispatchers the ability to proactively reroute drivers and update customers before a minor delay turns into a missed delivery.
3. Equipment and Fleet Bottlenecks
When disruptions slow down freight velocity, fleet assets can get stuck in the wrong markets or stuck sitting idle in congested yards. Without clear fleet visibility, carriers are forced to reposition empty trailers at high costs or turn down profitable freight because their equipment isn't where it needs to be.
TMS Solution: Fleet Manager and Centralized Asset Tracking
TransPlus Fleet Manager gives operations teams centralized visibility into truck and trailer availability, location tracking, and status. The system's comprehensive reporting and asset management features eliminate blind spots, allowing planners to optimize asset utilization and send fleet assets where capacity is needed most.
4. Bad Shipper-Carrier Relationships
During major supply chain disruptions, a lack of transparency and reactive communication can quickly strain long-standing business partnerships. Shippers that are forced to constantly call for status updates can lose confidence in a carrier's reliability, making them more likely to choose competitors when markets settle.
TMS Solution: Automated Customer Updates and Digital Portals
Transportation Management Systems strengthen shipper and carrier relationships by replacing phone tag with automated order status updates and real-time tracking visibility. Features like simplified customer invoicing, transparent contract processing, and digital document filing help ensure seamless communication and build shipper trust via end-to-end reliability.
5. Shifting Freight Lanes
Sudden market disruptions can often force carriers to abandon traditional headhaul routes and adapt to unfamiliar, shifting freight lanes overnight. Navigating unfamiliar freight corridors without accurate market rates or established driver networks leads to unprofitable runs and confusion.
TMS Solution: Logistics Manager and Multi-Currency Quoting
TransPlus Logistics Manager streamlines quoting, rating, load building, and carrier assignment into a single intuitive interface. Multi-currency support (CAD/USD) and flexible rate structures allow carriers and brokers to evaluate and execute new freight lane opportunities quickly without sacrificing profitability.
READ MORE: How a TMS Manages Freight Rates and Reduces Errors
Supply chain disruptions and volatility are here to stay — but high operating costs and schedule delays don't have to be your default. Navigating the modern freight industry landscape requires tools built to turn these unexpected supply chain disruptions into manageable routines. Find out how a TMS minimizes the impact of supply chain disruptions on your fleet by providing complete visibility, automated workflows, and detailed reporting to your daily operations.
Contact TransPlus today to request a demo of the TransPlus TMS and see how our tailored trucking and logistics software can keep your business moving forward!
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Book a personalized 30-minute demo of dispatch, invoicing and driver pay on your own workflows. Still comparing options? Start with our free TMS Buyer's Guide.
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