How TMS–WMS Integration Improves Supply Chain Efficiency

Transport management systems (TMS) are utilized by businesses to optimize the transportation of physical goods from their warehouses to clients and customers. Proper TMS integration with warehouse management systems can help companies keep better track of their inventory and drive further improvements in operational efficiency, customer service, and cost savings.

This guide explores the value of integrating warehouse management systems and transportation management systems. It explains how to plan an effective digital transformation project to get the maximum ROI out of a new integrated system.

Transport management systems and warehouse management systems perform two distinct jobs. The WMS handles receiving shipments, tracking inventory levels, and picking and shipping orders. The TMS handles everything related to the movement of freight once an order is picked and ready for shipment. 

When these systems operate independently, it can cause delays, as orders may need to be handled manually. Not only is this less efficient than using an automated system, but it can also lead to inefficient package handling or introduce the possibility of errors in the shipment. TMS integration bridges the gap between the warehouse and transport management systems, ensuring seamless handoffs and better communication throughout the order fulfillment process.

By integrating the TMS and WMS, companies benefit from real-time data sharing across logistics and fulfillment operations. Rather than orders being picked and queued for manual processing as they arrive, warehouses can communicate with logistics companies to schedule shipments for optimal times. Improved visibility into carrier availability and inventory movement allows for more streamlined warehouse, yard, and carrier operations.

By removing the need for manual order processing, there's less likelihood of errors, confusion, or delays. Once an order gets processed in the WMS, it can be automatically scheduled for pickup in the TMS. Since data is shared between both systems, it's easier to avoid over-congested docks and work around issues, such as scheduled manual jobs or large shipments being loaded or unloaded.

When using separate, standalone systems for warehouse and transportation management, the important data those departments rely on becomes siloed. Communication delays can create confusion, errors, and inefficiencies. In small and medium-sized organizations, it's often possible to work around these challenges. However, as an operation scales, small frustrations can become severe bottlenecks. WMS-TMS integration offers a quick, efficient, and scalable way of improving communication between departments and can bring almost immediate improvements in efficiency, productivity, and reliability.

Properly integrated TMS and WMS platforms offer several potential benefits, including:

• Faster order cycle times. Reduced delays between each stage of the order fulfillment process allow for quicker picking, packing, and shipment.
• Improved freight planning. Having access to real-time data about warehouse inventory and readiness allows for more efficient freight planning and scheduling. Warehouses and yards can operate at peak throughput for a larger portion of the day without fear of congestion. Yard congestion is a complex issue that can cause significant delays and present a safety hazard. Streamlining this aspect of freight operations can lead to significant time savings and improvements in workforce safety.
• Better workforce management. Track and optimize labor resources in yards and on the road. Maintain compliance with working time regulations and ensure all teams are running at peak efficiency.
• Improved load consolidation. Maximize the value of each load and reduce the number of empty miles delivery vehicles run, saving time and fuel.
• Improved route planning. Save time, reduce fuel consumption, and eliminate wasted driver hours by planning the optimum route for each load.
• Better customer experience. Keep all customers up to date on the status of their deliveries and get packages to them more quickly, thanks to improved tracking, communication, and shipment planning.
• Reduced environmental impact. As ESG policies become increasingly critical for many businesses, the reduction in fuel consumption that comes with improving the efficiency of internal freight operations is highly desirable.
  

TMS integration helps businesses close operational gaps between their warehouses and transportation carriers. By sharing data between a TMS and warehouse management system, it's possible to reduce costs, increase efficiency, and improve customer satisfaction. In today's increasingly competitive landscape, where supply chains are becoming longer and more complex, businesses need to be able to adapt to changing conditions and supply chain disruptions promptly. Consumers demand accurate shipping estimates, frequent updates, and clear communication, and they have little patience for lost, delayed, or incorrect orders.

To remain competitive, businesses must invest in shipping and logistics systems that enable them to deliver a high level of customer service. If any systems aren't closely integrated, the organization could be missing out on critical tools and features that would enable it to streamline its supply chain and fulfillment processes.

Our supply chain planning and execution systems offer powerful tools for end-to-end supply chain management and have native integration capabilities. To learn more about how we can help companies improve communication between their warehouse management and transportation management systems, contact us to book a free, no-obligation consultation.