Benefits of a Transportation Management System (TMS) for Small Trucking Companies

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A Transportation Management System (TMS) is a valuable tool for trucking and freight companies — but maybe even more so for small freight companies. Data provided by the American Trucking Associations indicates that an estimated 95.5% of trucking companies in the United States operate less than 10 trucks and those smaller freight companies need to reduce costs and improve efficiency wherever possible and that is where a TMS can help. While the benefits of a Transportation Management System for small trucking companies may be the same as a larger fleet — they may have a larger impact on the success of the business.

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Top 3 Benefits of a TMS for Small Freight Companies

A majority of trucking and freight companies in the United States are fleets with less than 10 trucks and a Transportation Management System can help those companies meet their financial goals and drive long-term success. Businesses that implement a TMS will benefit their freight operations in three primary ways — increased efficiency, reduced costs, and improved customer satisfaction.

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Here is a closer look at how a TMS will benefit small freight companies:

1. Increased Efficiency

Efficient operations in the trucking and freight industry lead to increased profitability and a TMS can lead to increased efficiency in multiple ways. When it comes to day-to-day tasks, a Transportation Management System can streamline workflows and automate many aspects of operations. With Artificial Intelligence (AI) capabilities, a TMS can plan more efficient routes, speed up pickups and deliveries, maximize truck capacity with optimized LTL load planning, and track shipments in real-time.

2. Reduced Operational Costs

Did you know that trucking and freight companies spend an estimated 40% of their total budget on fuel each year? Reduced operational costs, like fuel consumption, can help small truck companies stay ahead of the curve and increase profitability. Transportation Management Systems have the ability to optimize routes and provide shipping routes that will save fuel and reduce fuel costs. In addition to reduced fuel costs, many TMS platforms provide software that will help plan more efficient loads and find affordable carriers that will help freight companies reduce costs and increase profits.

3. Improved Customer Satisfaction

Happy and satisfied customers lead to increased customer trust, increased profits, and long-term financial success. A Transportation Management System provides innovative tools that can help improve customer service and customer satisfaction in a variety of ways. The increased visibility of shipments and improved communication provided by a TMS allow trucking companies to better track shipments, proactively update customers on shipping times, and provide a more reliable timeline. With these elements, small freight companies can provide a better customer experience that leads to long-term success.

The benefits of a Transportation Management System (TMS) for small trucking companies will help set smaller freight companies apart from their competitors in the ultra-competitive trucking industry and ensure long-term success. Contact TenTrucks today to learn more about the TenTrucks TMS platform and our dispatching services!