Optimize Sustainability in Logistics with a Transport Management System (TMS)
Logistics is the beating heart of many businesses, but it is also one of the sectors with the greatest environmental impact. With increasing environmental awareness and growing regulatory pressure to reduce carbon emissions, adopting sustainable solutions in logistics is no longer an option but a necessity. Among the available technologies, a Transport Management System (TMS) can be a key tool to optimize the sustainability of the supply chain.
What is a Transport Management System (TMS)?
A TMS is a software platform designed to plan, execute, and optimize the transportation of goods. This tool allows companies to manage every aspect of transportation, from route planning to fleet management, while monitoring operational efficiency in real time. In addition to enhancing productivity, a modern TMS can play a crucial role in a company’s sustainability strategy.
Sustainability and Logistics: Why act now
The transportation sector accounts for a significant share of global CO₂ emissions. According to the International Energy Agency (IEA), transport is responsible for approximately 24% of global greenhouse gas emissions related to energy. With the expansion of e-commerce and growing demand for rapid deliveries, the logistics sector faces increasing challenges to reduce its environmental impact. Investing in a TMS can help companies address these challenges by integrating sustainability and efficiency into daily operations.
How a TMS Can Optimize Sustainability
- Route Optimization
A TMS uses advanced algorithms to calculate the most efficient routes, reducing fuel consumption and, consequently, CO₂ emissions. Planning routes that minimize distances and avoid traffic congestion also helps cut delivery times. - Shipment Consolidation
Through a TMS, multiple shipments can be combined into a single load, reducing trips and maximizing vehicle utilization. This approach not only lowers emissions per unit of cargo transported but also reduces operational costs. - Real-Time Monitoring
Modern TMS platforms offer real-time tracking capabilities, enabling companies to monitor the efficiency of their fleets. This allows for quick intervention to address deviations or inefficiencies, reducing unnecessary consumption. - Use of Sustainable Transportation Modes
An advanced TMS can assist in selecting more eco-friendly transportation modes, such as rail or sea transport instead of road, where feasible. - Reducing Indirect Emissions
By integrating with other technologies, a TMS can calculate emissions associated with each trip, enabling companies to monitor and improve their environmental impact. - Management of Electric or Hybrid Fleets
Many modern TMS platforms are designed to integrate the management of electric or hybrid fleets, optimizing routes to make the most of range and charging points.
Key Features of a Transport Management System
An effective Transport Management System is built around four main functionalities:
Planning: By integrating with the company’s ERP and supplier portal, it automates shipment preparation, taking into account the type of goods, route, transit times, and logistics services.
Execution: During transport, it provides real-time visibility into the status of shipments, thanks to the integration of tracking information and the digitization of transport orders.
Resolution and Control: It monitors transport costs by comparing invoices with agreed rates, managing irregularities, and optimizing financial management.
Analysis, Reporting, and KPIs: It collects and analyzes transport data to provide insights and forecasts on future trends, improving strategic planning.
