Companies opted TMS only for cutting freight costs but nowadays they find out that it can also be used to meet customer service demands.
Suppliers are tend to provide frequent but smaller shipments, which results in complex process that can drive up their transportation costs and degrade the shipping accuracy. At the same time, they are put in pressure to stick to the standards for delivery deadline. As a result they started turning to TMS solutions and discovered that they can generate a return on investment (ROI) through improved customer service.
Shippers who concentrate on improving customer service do not ignore the other business metrics also. Rather they try to balance multiple goals at once.
As a survey conducted by ARC Advisory Group, It is found that 70 percent of companies who implemented TMS to reduce costs, where 65 percent preferred that customer service was also very important.