TMS’s Pairing Up With Cargo Insurance

When I visit my local supermarket, I often head to the deli counter to purchase salami, which I am not supposed to eat. Some time ago I noticed something. Placed right next to the deli sits the supermarket bakery. Well, how convenient is that?   As I wait for the salami I am forbidden to eat, there is a wonderful selection of rolls and bread, which I am also not supposed to eat, in my view which will go wonderfully with my salami. Well how about that, how lucky can I get? Taking advantage of the proximity of the bakery I pick up a loaf of nice fresh bread and am back to the deli to receive my salami in no time. Lucky? Hardly, the supermarket put the bakery there because they knew I would likely want bread.

Putting products and services in front of consumers at the right place and time is paramount.  Savvy retailers have made it their business to make sure I don’t walk out of their store without bread purchased from them only to buy it somewhere else. Similarly, the cargo insurance industry has recognized quality and well-priced cargo insurance has not always been the easiest thing for transportation consumers to purchase on an as-needed basis. As all things change, how you can buy cargo insurance is also changing. TJO Cargo and Anova Marine Insurance have joined together to bring you the change.

Through system integration forwarders and 3PL’s can now provide cargo insurance to their customers as an easy and cohesive part of booking a shipment for their clients in their transportation management system (TMS). Even more exciting, transportation consumers booking shipments through their customer portal with their favorite 3PL can do the same thing.

During the process of booking a load in the 3PL’s transportation management system (TMS) the shipper will be asked if they wish to add cargo insurance to their shipment.  If the shipper opts to add insurance, cargo insurance will add seamlessly to the overall transportation purchase. In essence, the system is quite similar to putting the bread right next to the salami in the deli. It will prevent transportation consumers from searching and make the same purchase elsewhere.

Most 3PL’s can’t live without their TMS in this day and age. Growing 3PL’s utilizing a TMS is not a nicety today, it is a must. Maximizing the benefits of these systems is the real game changer. According to Alex Stark with Kane is Able, Inc. in his article ‘The role of the TMS in 3PL Transportation Systems’ TMS programs are best utilized by 3PL operations.

” TMS systems were once thought to be an alternative to 3PL outsourcing. But, just as most companies don’t have the resources to effectively run their own transportation operations, they also don’t have the resources to effectively manage a TMS. 3PLs have the resources to do both. So, instead of having their role reduced by TMS systems, 3PLs have embraced this technology to run more efficiently and improve communication with drivers. This results in greater cost savings for 3PL customers who can focus on growing their businesses while leaving software investments and logistics operations – TMS included – to be handled within a robust 3PL infrastructure.  .” – Alex Stark 

The integration of cargo insurance is a terrific way to maximize the benefits of your TMS. The benefits for all parties are clear with this system. Shippers will gain the ease of securing cargo insurance while booking freight. Transportation intermediaries will increase the reasons for shippers to utilize their services as well as benefiting from added service fees. And lastly, for TMS companies who choose to integrate our system into their software, it can make them the TMS company of choice for many more transportation intermediaries.  As an additional windfall, there is no purchase price to integrate the cargo insurance for the TMS provider, the forwarder, or the 3PL.

Is it as cool and transformational as blockchain technology? Nope, it’s not. But it is here and ready to use today.  If you are a TMS provider, a transportation intermediary, or a shipper who has have questions about adding cargo insurance through API feel free to contact me e-mail or 904-781-6531 for more information.