• 21-01-2022

Transportation Management System

All companies currently need all the help they can get to help them work smarter, easier, and more efficiently while operating in a progressively complex logistics world. In addition, customers are becoming increasingly demanding, and the need for more improved supply chain visibility continues to pose a challenge for companies. As a result, technology like Transportation Management Systems is now more critical than ever. The transportation management system plays a crucial role in helping shippers overcome these challenges and thrive in the increasingly competitive logistics industry.

A transportation management system or “TMS” is a subset of supply chain management (SCM) that deals with the planning, execution, and optimization of the physical movements of goods. In simpler terms, it’s a logistics platform that enables users to handle and optimize the daily functions of their transportation fleets.

Distributors, manufacturers, retail businesses, and others that are constantly moving freight are aware that there are many moving parts to the shipping process. From quoting to delivery, shipping freight companies always look for new ways to optimize their spending and improve operations. A TMS does just that by helping shippers overcome daily challenges.

A TMS is primarily used by businesses that need to ship, transport, and receive goods regularly, including: Manufacturers, Distributors, Trucking companies, Ecommerce companies, Retail chains and shippers, Logistic service, companies, such as a third-party logistics (3PL) provider

A TMS helps shippers move loads from source to destination in the most cost-effective and rational ways possible. Most users primarily rely on TMS software to lower their freight costs. However, there are many other benefits.

Below are a few benefits that a TMS provides.

  • Improved supply chain analytics
  • Carrier selection based on transit times, shipping costs, etc.
  • Better warehouse efficiencies
  • Decreased data entry errors – less wasted time fixing mistakes
  • Combine it with a Warehouse Management System (WMS) to achieve more supply chain visibility
  • Reduced inventory and greater confidence with customer tracking Enterprise
  • Resource Planning (ERP) integration to minimize manual data input