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Logistics Automation

Case Study: Cutting Transportation Costs by 20% with TMS

A real-world case study of achieving dispatch and route optimization through Transportation Management System (TMS) implementation to reduce logistics costs.

POLYGLOTSOFT Tech Team2025-11-016 min read0
TMSTransportation ManagementRoute OptimizationLogistics Cost

What Is TMS?

A Transportation Management System (TMS) is a system that integrates the planning, execution, and settlement of freight transportation. It automates the entire transportation workflow from dispatch planning to route optimization and freight billing.

Core TMS Functions

  • Dispatch Optimization: Optimal dispatching considering vehicle capacity, delivery destinations, and time constraints
  • Route Optimization: Shortest/optimal route calculation based on traffic conditions, distance, and time
  • Real-Time Tracking: GPS-based real-time vehicle location and delivery status monitoring
  • Freight Settlement: Automatic freight calculation by distance, weight, and zone
  • Background

    Logistics company B was facing the following challenges:

  • Low vehicle utilization due to manual dispatching
  • Inefficient routing based on experience rather than data
  • Frequent delays and errors in freight settlement
  • Inability to monitor real-time delivery status
  • Solution Implementation

    Dispatch Optimization Engine

    An AI-powered dispatching algorithm maximized vehicle load rates and minimized empty running.

    Dynamic Route Optimization

    Optimal routes are dynamically recalculated in real time, incorporating live traffic data.

    Unified Dashboard

    Real-time monitoring of dispatch status, vehicle locations, and delivery progress.

    Results

    Performance after 6 months of TMS deployment:

  • Transportation costs reduced by 20%
  • Vehicle utilization improved by 30%
  • On-time delivery rate of 95% achieved
  • Freight settlement time reduced by 80%
  • Conclusion

    TMS is an essential system for the digital transformation of transportation logistics. Reduce transportation costs and improve service quality with POLYGLOTSOFT's logistics solutions.

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