5 Benefits of Using a Freight Management System

As a person who has primarily invested in logistics, you should understand how beneficial the freight system can be to your business. Freight management is a commercial way of goods from one place to another in bulk to incur lower expenditure on transportation.

While most logistics businesses are doing well globally, they have chosen to invest in freight systems to move their goods. With freight management, they ensure that all the systems are organized, get your books ready for auditing and tax season, keep you updated on your shipment and a lot more. So, if you want to take your logistics company to the next level, it’s high time to start using a freight management software. Today’s article will give you five key reasons why using a freight management software will benefit you tremendously. 

Cutting down freight costs

The main benefit of choosing to use freight management systems is to cut down the amount of money used to move goods from one place to another. The system will provide you with an opportunity to reduce the costs without interfering with the quality of services you are rendering to your customers. Goods will be well handled during transportation and delivered at the agreed point for pickup. Freight management systems have also given you an option to keep track of your goods and send you time to time updates on the current location as they keep moving. It is the best option for anyone who needs to move goods for a long distance. Additionally, it is also only suitable for those that move bulk in one direction or have a large market at the same place.

Advanced customer service

In every business industry that wants to keep growing, customer service or satisfaction is a critical factor that must be achieved. Logistics is also not an exception since it deals with goods that will be given to the consumers. In case things go sideways in logistics, then it would have brought failure down the line. Since we live in a digital error, transport management systems (TMS) has come up with an online portal for customers. The online portal helps customers keep track of their shipments, give updates to customers, and even gives them the ability to locate the shipment’s current location plus the exact delivery time.

Performance Analysis

As a result of keeping track of goods, it will help you evaluate your performance and your worker’s performance. Keeping track of your goods also lets you understand where more efforts need to be added, either the means, the workers (drivers) moving your goods or the routes. Evaluation guides you to know which worker is adding value to the company and who is not. It also helps find a way of ensuring that your customers are adequately satisfied with the freight services you are offering to them. In return, you will be able to know how your brand is performing in the market and reduce cost, among other benefits resulting from the performance analysis of the freight management system. 

One study recommends that you should focus on the following areas to evaluate the performance of your freight management system; 

  • On-time pickups. You have to ensure that your goods have always been picked up at the recommended time to avoid late delivery on endangering the goods due to overspeeding.  
  • Road transportation cost per unit. This can be achieved by dividing the total expenditure on transportation by the number of shipped units.
  • Vehicle turnaround time. This is the average time spent between vehicles arriving at your deport and departure. 
  • Vehicles fill percentage. This is the total capacity that the vehicles can manage to carry. While considering this, you also have to watch on the maximum legal weight your vehicle should carry.
  • On-time delivery. Ensure your vehicle and drivers are in a position to meet on-time delivery.

There are numerous factors apart from the mentioned five, but they are the key ones to consider. 


For most freight management systems, customization to the needs that suits different clients supply chain has been taken good care of. Due to this, it will be easy to do integration, help your logistic business to another level and improve efficiency at the same time. Ensuring that you have high-quality freight management that is reliable and can be easily implemented comes with various benefits. This will result in you opening up your market and growing your business on multiple grounds. Since you have been given reasons that would benefit your logistics company, it’s high time for you to go for various implementations with one solution of a freight management system to compete at higher levels. 

Implement improved inventory and warehouse efficiency

An efficient inventory and warehouse are the critical contributors to success in the logistics industry. Achieving this will be complex if we are dealing with so many moving parts. The solution to this is streamlining this area by tracking incoming orders and shipments using inventories and a transport management system. As a result, you will be able to maintain adequate levels when you need to restock. It will also reduce the manual labor being applied in the warehouse due to less information having to be captured and reduced paperwork. 


A freight movement system is one way of maximizing your logistic business and making more profits. It is also a way of enlarging your market and reconsidering investing in various ventures that will widely market your company’s brand. As mentioned earlier, a freight movement system is only suitable when you deliver bulk goods for a long distance.

Building a successful logistic business has become difficult due to high levels of competition across the globe. Therefore, you should conduct market research on what your competitors are offering and what inventory could be applied to outdo them for you to win more customers. Lastly, ensure all contributing factors such as warehouse management, stock records, and packaging support the freight movement. 

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