Bridging the Gap: Enhancing ERP with a Transportation Management System

In the world of logistics, efficiency is everything. Companies are constantly looking for ways to streamline operations, reduce costs, and improve visibility across their supply chains. Two common systems play a role in managing these goals: Transportation Management Systems (TMS) and Enterprise Resource Planning (ERP) software. While ERPs are designed to integrate multiple business functions, they often fall short when it comes to handling the complexities of transportation management. This is where a dedicated TMS can make all the difference.

The Limits of ERP in Transportation

ERPs are excellent at managing financials, human resources, procurement, and other business processes. However, when it comes to transportation, ERPs often lack real-time tracking, carrier rate optimization, and dynamic route planning. Businesses that rely solely on an ERP for transportation management may find themselves struggling with inefficiencies, increased freight costs, and reduced visibility into their shipping operations.

The Power of a TMS

A TMS is purpose-built for managing freight movement, optimizing routes, and selecting carriers based on cost and performance. Unlike an ERP, a TMS provides real-time shipment tracking, automated freight auditing, and dynamic rate shopping. These capabilities help businesses cut costs, reduce delays, and enhance customer satisfaction by ensuring timely deliveries.

Key Advantages of a TMS Over an ERP for Transportation

Cost Savings Through Optimization – A TMS allows businesses to compare carrier rates, consolidate shipments, and automate freight audits, leading to significant cost reductions.
Enhanced Real-Time Visibility – Unlike ERPs, which may lack up-to-the-minute shipment tracking, a TMS offers real-time location updates, improving supply chain transparency.
Quicker Implementation and ROI – While ERP deployments can take years to fully optimize, TMS solutions are typically faster to implement, leading to quicker cost savings and efficiency gains.
Flexibility and Scalability – As businesses grow, their transportation needs evolve. A TMS adapts to changes in volume, routing complexity, and carrier relationships better than an ERP.
Compliance and Risk Mitigation – A TMS helps businesses navigate regulatory compliance, carrier contracts, and risk management more effectively than ERP systems, which are not designed to handle the nuances of freight management.

How GLI Provides TMS Solutions

At Global Logistics Inc. (GLI), we understand that different businesses have unique transportation needs. That’s why we offer two TMS options, providing flexibility and scalability for our clients. Whether you require a robust, enterprise-level TMS or a streamlined solution for managing your freight, GLI has the right technology to support your operations.

Additionally, GLI provides native integrations with NetSuite, Acumatica, SAP, and Sage, ensuring seamless data synchronization between your ERP and transportation management system. These integrations allow for automated order processing, improved freight cost allocation, and real-time tracking within your existing workflows. By combining our TMS options with the powerful ERP capabilities of NetSuite, Acumatica, SAP, and Sage, and others, businesses can achieve a more connected and efficient supply chain.

Why Integration Matters

Rather than choosing between the two, businesses often benefit most from integrating a TMS with their ERP. This approach enables a seamless flow of data between financial, procurement, and logistics teams, ensuring that transportation decisions align with broader business objectives. The result? A more agile, efficient, and cost-effective supply chain.

The Bottom Line

If your company is serious about reducing freight costs, improving visibility, and optimizing transportation operations, relying solely on an ERP isn’t enough. A TMS provides the specialized tools needed to navigate the complexities of modern logistics. By integrating a TMS with an ERP, businesses can achieve the best of both worlds: seamless enterprise-wide data management combined with the power of real-time transportation optimization.

Are you ready to elevate your transportation management strategy? GLI’s TMS solutions could be the key to unlocking new levels of efficiency and cost savings for your business. Contact us to schedule a demo!