A transportation management system (TMS) is a platform that helps organisations prepare, execute, settle and analyse freight operations. A TMS is primarily designed for the freight buyer to plan freight movements, perform freight rating and shopping, select the appropriate route and carrier, and manage freight bills and payments.
A TMS serves as an all-in-one to:
TMS solution providers generally focus on different aspects of the freight procurement process. Some emphasise planning while others focus on tendering, execution or settlement. Practically all of them offer data analytics and visibility solutions, often referred to as “control towers.”
It is also useful to understand what a TMS doesn’t do; it’s not a tool to optimise the real-time utilisation of transport assets. If that is an area of interest for your organisation, you should direct your attention towards route optimisation and fleet management systems. A TMS is primarily designed for the freight buyer.
Use of a transportation management system is your path to:
Removing manual tasks is the first step to using your resources more efficiently, and TMS is a sure-first step in the right direction.
If you consider the control and management of your products all the way to your final customer a core process, a TMS is something you should have in your company IT portfolio. Companies with an in-house TMS open up great potential for organisation-wide digitalisation and the benefits that come with it.
To choose the best TMS for your company, consider one with scalable features that you can add to fit your short and long-term needs. Make sure the provider you choose is cloud-based and focused on high-quality analytics and end-to-end visibility. Service providers with a smart business network in their core offering ensure wide-reaching connectivity, interoperability and global regulatory compliance.