How transportation management systems improve supply chain efficiency
Food waste is a major issue across global supply chains, contributing to both economic loss and environmental destruction.
According to the United Nations’ Food and Agriculture Organization (FAO), approximately 14 percent of the food produced globally is lost between harvest and retail markets, and an additional 17 percent is wasted at retailers, or by consumers. This amounts to food valued at around $400 billion in 2019.
Much of this waste occurs during transportation and distribution, where inefficiencies in logistics are largely to blame. Collection delays, the lack of effective cold chain management, and inefficiencies in transportation contribute to a significant problem. 
Given ever-rising populations and the growing need to address food waste, businesses in the food industry are turning to innovative technologies to address such problems.
Among these solutions, transportation management systems (TMS) have become a valuable tool for improving supply chain efficiency and minimizing waste. TMS, digital platforms designed to streamline the movement of goods, improve the chances that perishable products reach their destination on time and in optimal condition.
How transportation management systems (TMS) reduce food waste
Route optimization and real-time visibility
A TMS optimizes the transportation of goods by providing real-time visibility, route optimization, and improved communication between all parties involved in the supply chain. This increases delivery speed and minimizes the risk of delays that can cause spoilage of temperature-sensitive products like fresh vegetables, dairy, and meat.
One of the key features of TMS is route optimization. By selecting the most efficient methods and routes for delivery, the system reduces time spent in transit. Fewer delays mean fewer opportunities for products to spoil, translating into reductions in food waste.
Real-time tracking ensures that if there are disruptions, such as traffic or mechanical breakdowns, companies can readily reroute shipments or adjust delivery plans, ensuring products still arrive within their viable window.
Temperature control and monitoring
Additionally, TMS helps monitor compliance with temperature-controlled transportation requirements. By integrating with sensors and IoT devices, TMS can ensure that perishable goods remain in controlled environments throughout the journey. If temperature fluctuations are detected, the system triggers alerts, allowing immediate corrective action.
Enhanced collaboration and communication
TMS enables improved collaboration and communication between every party in the supply chain. When manufacturers, carriers, and retailers have access to the same data, it reduces miscommunication and delays, further enhancing supply chain performance.
Inefficiencies such as the sending of partial loads, can be minimized with TMS, saving money for distributors, and ensuring that retailers are promptly restocked with fresh goods with a healthy shelf life.
Beyond waste reduction: cost and environmental impact
Lowering fuel consumption and carbon emissions
While the primary focus of TMS implementation is to minimize food waste, the benefits extend far beyond mere efficiency gains.
Optimized routes and real-time monitoring lead to reduced fuel consumption, which lowers transportation costs and decreases the carbon footprint of the supply chain. This dual benefit of saving money while reducing environmental impact aligns well with companies looking to balance profitability with sustainability.
Cost savings and profitability
Many TMS provide tools for logistics modeling, in which proposed supply chains are assessed across a range of factors including carbon emissions. This allows firms to try various workable solutions before committing to one that balances pragmatism and sustainability.
Such modeling can help reduce costs too, and here TMS can make a major contribution to a company’s bottom line.
By eliminating inefficiencies, TMS reduces the likelihood of discarding spoiled goods. This not only saves the cost of the wasted product but also the labor and resources spent in its production, packaging, and transportation. Fewer discarded goods mean fewer replacement shipments, further saving on transportation costs and resources.
Sustainability as a competitive advantage
Customers and consumers are increasingly concerned about sustainability. Retailers want to offer sustainable practices throughout their supply lines. The ability to demonstrate a reduction in waste and environmental impact can prove a key differentiator for businesses in the food industry.
With TMS, companies can commit to more responsible and efficient supply chain practices, enhancing their reputation.
The bright future of food supply chain management
Embracing emerging technologies
As the food industry continues to grapple with the challenges of food waste, TMS offer a practical and effective solution.
By optimizing routes, improving real-time visibility, and enhancing collaboration, TMS can significantly reduce the amount of food lost in transit. Additionally, the ripple effects of TMS implementation—such as cost savings and a reduced environmental footprint—highlight its value for businesses looking to build a more sustainable supply chain.
As technology continues to evolve, the role of TMS in the food supply chain will likely expand further, with advances in AI and predictive analytics offering even greater efficiencies. Blockchain technologies and radio frequency identification (RFID) will allow for more reliable product traceability, creating a transparent and inviolable record for supply chain monitoring.
Building a sustainable supply chain
Route modeling will become ever more intelligent, pulling in traffic and flight information, weather patterns and other data, and enabling an initiative-taking approach to logistics, rather than reactive crisis management.
Meanwhile, IoT devices will monitor the conditions of produce throughout the supply chain, warning of changes in temperature, or the existence of bacteria or other impurities which might cause produce to spoil. From inventory sensors in warehouses to smart thermostats and domestic appliances, millions of these devices are already in use.
TMS is where all these technologies come together, producing data-rich oversight across the whole supply chain. By adopting the TMS approach, businesses can shape much less wasteful and more sustainable food logistics for future generations.
For a list of the sources used in this article, please contact the editor.
Nick Fryer
Nick Fryer is Vice President of Marketing at Sheer Logistics. He has over a decade of experience in the logistics industry, spanning marketing, public relations, sales enablement, M&A and more at 3PLs and 4PLs including AFN Logistics, GlobalTranz, and Sheer Logistics.