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Definition Transport Management System
A transportation management system is a software system that helps companies manage logistics associated with the movement of physical of goods – by land, air, sea, or a combination of transportation modes. Part of the larger supply chain management system, TMS logistics software helps ensure timely delivery of goods by optimizing loads and delivery routes, tracking freight across local and global routes, and automating previously time-consuming tasks, such as trade compliance documentation and freight billing. A TMS system reduces costs for both businesses and end customers.
The TMS supports the orchestration of transports by recording and managing transport orders, planning routes, optimising the loading of the means of transport and calculating the costs arising in connection with the transports. In addition, shipments can be tracked and invoiced, including using telematics. Information obtained in this way can be passed on in real time by connecting to adjacent systems, e.g. the WMS.
The emergence of cloud-based transportation management system software has leveled the playing field. Once the domain of only larger entities, TMS software is now being used by smaller companies that need an integrated digital system to compete in today’s marketplace.
Features of a transportation management system
What is a TMS system today? Modern TMS software includes features that can dramatically reduce complexity and improve efficiency. Key features include:
- Transportation planning and execution: Streamline procurement and freight shipment with automated carrier rate comparison and booking. Choose the mode of shipment – air, ocean, truck, or rail freight – and plan the most efficient route for the transport of goods. Optimize loads and take advantage of real-time track and trace capabilities to monitor progress.
- Freight management: Streamline the quote-to-contract process. Efficiently manage freight costing, order management, rate determination, and freight billing and settlement for both multimodal and intermodal transportation.
- TMS dashboards, reporting, and analytics: Forecast transportation demand, analyze rates and profitability, and adapt quickly to adjust to unforeseen circumstances. With real-time visibility into all aspects of the transportation process, you can make immediate, data-driven decisions.
Benefits of a transportation management system
“The emergence of cloud-based transportation management system software has leveled the playing field.”
CARGOMINER Freight Exchange Platform
For any company that ships goods, there are many benefits to a modern transportation management system.
Cost savings
A TMS system offers significant cost savings – for both the enterprise and the end customer – in a number of important ways.
First, it reduces administrative costs. TMS software makes it easy to compare carrier rates to find the best option. It also automates the booking process, replacing time-consuming phone calls with efficient digital booking. The software streamlines, integrates, and automates processes, including auditing, contract, payment, and order scheduling, for greater efficiency –and fewer errors.
TMS also lowers shipping costs. By automating the rating comparison process, the software helps identify the most cost-effective options, including some that might be missed using a manual process.
Load optimization is another area where TMS trims costs. Building pallets with rule-based optimization helps companies gain efficiencies and operate at scale.
