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.
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.