Figuring out the right TMS for your business typically boils down to your vendor’s data structure, which affects every facet of the software. One way to know whether the TMS will work for your needs is to look at its accounts receivable (AR) capabilities. This is where the data structure really comes to light.
In this exclusive for Logistics Viewpoints, our own Dawn Salvucci-Favier discusses why AR is so important:
“The flexibility with which a TMS allows you to create and manage AR records drives how fast, easily and accurately you get paid. But the truth is that many TMS’ AR record parameters won’t match up with the realities of your business, so taking a hard look at them will quickly give you an idea of whether you’re considering the right TMS.”
From rating to billing to allocation, learn about the critical AR capabilities to look for when considering a TMS. For example, for any given load and client, your TMS should be able to create an AR record at the order level, shipment level or load level. In addition, a TMS should give you multiple options for allocations and run them automatically as needed, such as when a load cost changes or order charges change.
By giving you more options that reflect the realities of modern transportation challenges, you have maximum power for determining the real-time profitability of your loads and flexibility in how you invoice. This is required for managing your logistics and taking advantage of more complex (but profitable) distribution methods, including pool distribution.
Learn more about AR and TMS software at Logistics Viewpoints.