LEVERAGING TMS DATA

Over the past 30 years, the third-party logistics industry has changed vastly. However, nothing has changed quite as much as the need for data to be used strategically to better manage supply chains. 3PLs provide many benefits, such as increasing efficiency, managing day-to-day freight and allowing companies to focus on their core business. Yet if a 3PL’s transportation management system (TMS) is not utilized properly, it does a disservice to the customers it exists to help.

TMS platforms house a huge amount of data, such as truck rates, claims and previous orders. Many systems, including our own, are able to provide real-time tracking information to the shipper and the office support staff. Most of this data is used to report what has happened and where spend was. The benefits of these capabilities are clear, but as logistics becomes more and more data-driven, it’s clear that 3PLs must use the information gathered by their TMS in a new way.  

At Kingsgate, we’ve realized that the analytics our system provides needs to be used in a predictive manner, to forecast what could happen and plan for the future. For example, our TMS allows us to see where trucks are, and which times of year various lanes tend to get busy or backed up. We are striving to use these trends to optimize our routes and shipping processes.

Logistics markets are only on the rise. This industry is projected to grow at an annual rate of 6.5% over the next four years. Continual increases in technology and efficiency in the transportation world can impact both delivery times and capacity. Kingsgate is committed to growing in conjunction with these industry changes. We want to be forward-looking, not backward-looking with our data.

What are your thoughts on the role of data in 3PLs?

All the best,

Jeff Beckham