A Transportation Management System (TMS) is software that helps businesses and organizations handle their logistics supply chain by organizing and tracking product and material movements. A Transportation Management System also aids in the management of shipping units, outbound and inbound shipment scheduling, mode selection, freight bill auditing, payment and processing of loss and damage claims, and so on.
A transportation management system’s basic functions and advantages include shipment load planning and transport optimization, routing guide, execution management, and carrier communication, shipment tracking, freight bill audit & payment, business intelligence, and reporting, claims management, returns management, appointment scheduling, and so on.
Shippers can use shipment load planning and routing optimization to plan their loading and then find suitable and optimized routes based on their needs. This saves a lot of money and time, which makes it easier for shippers to manage.
Another feature of a TMS is the routing guide, which assists vendors in determining inbound routing guides for better cost management. The execution management and carrier communication assist shippers in locating the tools required to assist them in selecting the right carriers as well as calculating shipping costs.
The TMS also assists you in obtaining an accurate freight bill audit and implementing the payment portion. A transportation management solution, like any other tool, provides business intelligence reporting, which allows you to learn more about your business and how to improve it.
A transportation management system (TMS) or a logistics management system (LMS) can also be used as effective vehicle routing software, assisting you in the efficient utilization of vehicles used for field service scheduling. It identifies areas where vehicles can be used effectively without wasting time or money. Because the TMS finds the shortest route, it reduces fuel consumption and improves fleet management and utilization.
As more businesses begin to use logistic management systems, demand and competition have increased significantly. As a result, the number of businesses offering customized transportation management systems or freight management systems has grown.