3 Ways a Modern TMS can Elevate Your Service, Enhance Value to Customers
Spot market rates are skidding after a relentless, two-year period of growth. Fleets of all sizes have been trying to add capacity, but the drop-off in spot market demand has been sudden and quite steep, according to DAT. Dry van and reefer spot rates have dropped 20% since the start of the year, while equipment posts are back to 2019 and 2020 levels.
Meanwhile, contract rates remain strong as the produce shipping season approaches, though analysts are acknowledging the second half of 2022 could see declining contract rates as well. What’s more, the Dow Jones Transportation Average that tracks 20 large U.S. companies is down nearly 11% from a late March high, compared with a 4% decline in the S&P 500 over the same period, according to the Wall Street Journal.
This movement in the freight market is causing fleet executives and owners to assess which variables they can better manage and control in the pricing equation to help navigate market shifts.
If transportation were purchased like a commodity, shippers would be shopping for carriers online by viewing their ratings, reviews, and locking in contract rates with a price-per-volume calculator. Yet, transportation does not behave exactly like a commodity. The freight market is dynamic and always in flux. Carriers price each lane differently, and shippers consider more than market prices when selecting carriers to participate in bids to reward contracts. Size, technology capabilities, lane preferences, on-time service and safety records, insurance coverages and other characteristics all make a difference.
With the freight market shifting gears after a historic run, the pressure is on carriers and logistics companies to further differentiate themselves by offering better services and increased value to command premium contract rates and move to the fast lane of preferred carrier status with customers.
Better Service, More Value
Modern technology solutions can support trucking and logistics companies in their efforts to stand apart in a crowded market.
Here are three ways a modern, SaaS-based transportation management software (TMS) system can help carriers provide better service to their customers:
1. Communication with and connection to other systems: The right TMS should easily adjust and adapt to meet each customer’s requirements. This requires platforms that can quickly integrate with any third-party technologies you may need to offer better service and information to customers.
With a wide variety of real-time integrations with third-party applications, the Magnus Technologies platform was designed for exactly that – to support and integrate with modern web-based services while still natively supporting legacy EDI/batch-based processing, which ultimately, means better connections, improved visibility, and support when and where you need it most. In the end, easier integrations make it easier for shippers to do business with carriers, which creates added value.
2. Structured workflows that improve overall experience: Modern TMS solutions that provide a structured workflow between the office and mobile environment make it possible to quickly assimilate customer needs and ensure high-quality service and consistency. Drivers can (and should) receive all the information they need to do their jobs at any point in the lifecycle of a load, and that’s exactly what a structured workflow does. This helps ensure high-quality, consistent service while reducing driver frustration and eliminating surprises for the customer.
3. Business intelligence that reduces operating costs: Recent advancements within TMS systems provide more opportunities to reduce IT expenses and increase utilization, revenues, and profit margins. The Magnus TMS has a simplistic pricing model based on the number of active assets in a fleet, which directly aligns the subscription with a customer’s revenues to make the technology affordable to companies of all sizes. There’s also built-in business intelligence capabilities. Users at any level do not have to ask the IT department to build a report to make decisions but instead have instant access to tools for making strategic decisions that benefit both their operations and their customers.
Having the right systems in place, backed by modern, agile technology, is the way forward. This not only helps carriers and logistics companies navigate uncertain market situations but doing so while proving their added value to shippers. It also creates a solid foundation to support your business needs – and those of your customers – through the challenging and opportunistic times that lie ahead.
Learn more about the customer service benefits of modern TMS solutions by scheduling a demo today – call (877) 381-4632 or reach out to email@example.com.