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Transport Management System

A Transport Management System (TMS) or software is a sub-division of supply-chain management (SCM). It mainly deals with the planning, execution and optimization of the physical movements of goods. Simply put, it is a logistics platform, which enables its users to manage and optimize the daily operations of their transportation fleets.

Transport Management System

TMS is available as a module within enterprise resource planning (ERP) and SCM suites. It helps organizations to move inbound (procurement) and outbound (shipment and/or freight) transportation of goods using tools such as route planning and optimization, load building, operations execution, freight audit and payment, yard management, etc. By using a TMS shipment efficiency can be improved, cost reduction can be achieved, real-time supply chain visibility can be gained and enhanced customer service can be provided.

TMS is useful for both shippers and logistics service providers. Nowadays many manufacturers, distributors, e-commerce organizations, wholesalers, retailers and third-party logistics (3PL) companies are using this software.

Why You Need Transport Management System?


Transportation Order Planning and Execution

TMS is integrated with, various systems for managing transport demand such as, enterprise order management, warehouse management and purchasing systems, customer relationship management (CRM), etc. enabling users to plan and manage both international and domestic shipments and determine the cheapest and most efficient carrier mode, using better route planning, load optimization, etc.

Supply Chain Visibility and Better Control of Inventory Management

TMS allows users to track and monitor the lifecycle of orders and shipments in real time and get status updates on each of them. Thus, an accurate forecast for the inventory is made possible and thereby improves the visibility and accountability of the supply chain network.

Reduced Invoice Errors

Automated freight payment and audit processes, can reduce various invoice errors that otherwise arise from manual procedures.

Transport Intelligence

TMS software offers users reporting capabilities, which provide them with detailed visibility into freight data and metrics to help pinpoint any discrepancies. They can thus, make the necessary changes to improve service delivery, reduce cost, and also create reports.