A complete guide to building the right TMS for your small business logistics company

May 31, 2023

By: John Tomblin, Senior Solutions Architect
ScottsdaleBizz, a division of Sofvue, LLC
Printed with permission of Data Titan, Sofvue LLC, and the author.
 

The pandemic of 2020 changed the shipping landscape forever. Not only were supply chains disrupted across the globe, but here in the states as well, everything stopped. Remember when you couldn't buy a GPU's because of costs, or baby formula, to name a few. Additionally, the pandemic taught us that we cannot remain so dependent on other countries for some of our most important commodities and technology. Chips, chip manufacturing, and other key manufacturing is slowly returning and finding its way back to our shores. This is not only good news for the economy in general, but this effort helps bring back manufacturing. In turn, this is going to fuel the need for strong transportation logistics systems as well as strengthen the demand for equipment and parts manufacturing right here at home. This includes all sorts of software tech, including supply chain management, distribution and tracking, allowing consumers and vendors to receive shipments not only across traditional channels, but also through the use of drones and short-haul delivery systems. People often forget that logistics is far more than eighteen-wheelers. It includes personal vehicles, short-haul vehicles, trains, drones, aircraft, shipping vessels, among others, and what brings it all together are the software and mobile apps in development over the current decade.

What is a TMS?

Robust Transportation Management System (TMS):

TMS is comprehensive software used for managing and optimizing transportation operations. A TMS enables tasks such as order management, route planning, load optimization, carrier selection, shipment tracking, and performance analytics. It streamlines processes, reduces costs, improves efficiency, and enhances customer service.

Let's take a look at the essentials you will need when considering a TMS software application or mobile app for your small business.

Step#1 Efficient Fleet Management controls:

When considering custom software development for your company, and assuming your business operates its own small fleet of transportation vehicles, effective fleet management is essential. Your software should give the management person the ability to schedule routine maintenance, track vehicles, as well as manage driver assignments. Additionally, the software must keep track and support compliance and regulations, both state and federal, as well as fuel management. It should also allow for route optimization, driver check-in and check-out management and driver performance.

Step#2 Inventory and Warehouse Management:

When choosing a software development company for your project, verify they have sufficient experience in developing inventory and warehouse management systems. These components within your software allow you to track and manage inventory levels, streamline order fulfillment processes, and optimize warehouse space. These systems can also facilitate inventory tracking, stock rotation, picking, packing, and shipping operations. Additionally, they may include features such as barcode scanning, RFID integrations, Wi-Fi automated replenishment, and integration with transportation systems.

Step#3 Supply Chain Visibility:

Having visibility across the entire supply chain for your software application or mobile app is crucial for effective logistics management. This includes the ability to track shipments, monitor inventory levels, and gain important insights into key performance indicators (KPIs). Implementing technologies like IoT (Internet of Things), RFID (Radio-Frequency Identification), and real-time data exchange with partners can provide accurate and timely information about the status of shipments, inventory, and other vital metrics.

Step#4 Partner Collaboration and Integration:

Logistics shipping companies often work with various partners, including carriers, suppliers, customs agents, and freight forwarders. Establishing effective communication channels, integrating systems, and sharing data in real-time can streamline operations, reduce errors, and enhance collaboration. Electronic Data Interchange (EDI) systems and Application Programming Interfaces (APIs) can also play a key role and facilitate seamless data exchange between systems.

Step#5 Compliance and Regulatory Considerations:

Complying with regulations and legal requirements is essential for logistics companies. This includes understanding and adhering to transportation regulations, customs and trade compliance, hazardous materials handling, and labor regulations. Staying up to date with industry standards and implementing proper training programs for employees is crucial to maintain compliance.

Step#6 Data Analytics and Reporting:

Utilizing data analytics tools and reporting capabilities within your software or mobile app allows you to extract valuable insights from your logistics operations. Analyzing data related to transportation costs, delivery performance, customer satisfaction, and other relevant metrics can help identify areas for improvement, optimize operations, and make data-driven decisions. When Scottsdale Bizz is chosen for your custom software development, we conduct several deep-dive discovery calls to gain critical insight regarding your project.

Step#7 Skilled Workforce:

Your company's software solution is useless without the right people driving the technology. Yes, there are many components and modules within custom software systems that can be automated, but you still need the right people to manage the system, and it's operations. As the old saying goes, "garbage in, garbage out", so it's imperative your team is adequately trained in the use of your software when it's complete. Having a skilled and trained workforce is essential for effectively managing a logistics shipping company. Employees should possess knowledge of logistics operations, transportation regulations, inventory management, and customer service. Training programs, ongoing education, and fostering a culture of continuous improvement can help develop and retain skilled employees.

When choosing custom software development, there's a few other factors needing your consideration.

#1 Selecting the right development company:

Whether it's ScottsdaleBizz or another company, you must take into account the longevity of the company you plan to hire. You must also ask them to provide at least a dozen letters of recommendation... and YOU MUST CALL AT LEAST three of them to obtain a verbal confirmation for the company you've selected.

#2 Technical Risks:

2.1 Complexity: What is the level of complexity associated with the software solution, and can it's complexity lead to difficulties in development, testing, and maintenance?

2.2 Integration: What challenges might arise when integrating different components or third-party systems, (API's, AI API's, third-party logistic integrators, etc.) that may lead to delays or functional issues?

2.3 Subject to: Are there any requirements associated with the development that force the software to be dependent on another API or third-party integrator, and if yes, what happens if the third-party provider sells their API(s), merges it with another provider rendering it useless for your business, or worse, they go out of business?

2.4 Resource Allocation: Do you have the personnel and tribal knowledge readily available for dissemination to your software development company? Do members of your team (stakeholders) have the bandwidth needed to dedicate themselves to the development process and still have time to do their full-time job?

These are just a few of the considerations of a much broader list, but they need answers before moving ahead.

ScottsdaleBizz, a division of Data Titan and Sofvue, LLC, has been designing and developing mobile and web-based application systems since 2004. To date, we have designed and developed over $22MM in solutions for companies coast-to-coast, and across numerous business segments, and we have 80,000+ wire frames to back up the statement. In the logistics space, we've developed multiple systems including an international TMS for the floral industry with a fleet of twenty-seven 18-wheelers and one aircraft, as well as a regional car sharing mobile app. Give us a call to learn more about our recently completed projects, read recent letters of recommendation, and to discuss how we can serve both your project and your company goals.

RE: 11523

Read More:

How a Well-Developed Mobile App can Streamline Logistics in your Business

Logistics Mobile App - Blue Jay Logistics Portfolio

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