TMS Features SMB Shippers Should Prioritize

When it comes to a transportation management system (TMS), not all features matter equally for SMB shippers. With limited resources and growing shipment complexity, SMBs need to be selective and strategic about which features they prioritize.

Below are seven TMS features that SMB shippers should consider to get the most value from their investment.

1. Multi-Carrier Rating

Multi-Modal Rate Shopping

The presentation of LTL, FTL, and other modes in a single rate shop lets shippers compare options and make cost-effective decisions faster. Transportation management system capabilities like this are invaluable ways to close the gap between small operations and larger-scale businesses.

Contract and Spot Rate Visibility

Visibility of contract and spot rates also helps ensure that you're always selecting the most cost-effective option.

Automatic Rate Updates

Rate refresh capabilities should also be prioritized, eliminating manual rate table maintenance and ensuring you’re working with up-to-date, real-time information.

Performance-Based Selection

Performance-based metrics that update in real-time fuel smarter decision-making.

2. Automated Carrier Tendering

Primary/Secondary/Spot Waterfall Logic

One of the most practical things a TMS does is automated carrier tendering. Look out for being able to automatically assign shipments based on predefined rules, which can save you time and headaches when it comes to juggling carriers.

Electronic Tendering and Confirmation

A TMS is designed to eliminate email-based workflows. Instead, it makes use of electronic tendering and confirmation, along with notifications to ensure all relevant parties are kept aware of shifts.

Exception Handling

The best TMS features remove manual steps when things don’t go according to plan. When a carrier declines a tender, the system should automatically move to the next available option, keeping shipments on track without requiring your team to step in.

3. Real-Time Visibility

Centralized Shipment Tracking

TMS tools tend to centralize your transportation operations, including having Electronic Data Interchange (EDI) and Application Programming Interface (API) based tracking in one dashboard, giving you a single view of all shipments while integrating with other systems like a warehouse management system (WMS) or dock scheduler.

Proactive Exception Alerts

Proactive exception alerts entail a TMS being able to identify risks and notify you and your team so that adjustments can be made before shipments are delayed. In some cases, you may need a TMS that has AI capabilities in order to access this level of data analysis. Perhaps this is why Gartner predicts that by 2031, 60% of supply chain disruptions will be resolved without human intervention thanks to AI.

Reduced Manual Status Checks

High-quality TMS tools update in real time, eliminating manual time spent chasing updates on freight.

4. Freight Audit and Payment

Automated Invoice Matching

A TMS should be able to compare invoices against expected rates, automating the process of invoice matching.

Overcharge Detection

Additionally, transportation management systems should be able to help surface billing discrepancies, reducing costly errors and helping you optimize spending.

Exception-Based Review

Some TMS software includes an option for exception-based review. This enables lean teams to conduct audits without dedicated staff.

5. ERP and WMS Integration

Pre-Built Integrations vs Open APIs

What you look for in a TMS that can communicate with your Enterprise Resource Planning (ERP) or WMS tools will depend on your operations. Some TMS tools may include prebuilt integrations (faster setup) while others will offer open APIs (customization flexibility). In some cases, your best TMS for SMB shipping may need to offer both.

Compatibility with Core Systems

You want a TMS that can communicate with software common to the transportation industry. This means compatibility with tools like NetSuite, QuickBooks, SAP, and e-commerce platforms.

Faster Time to Value

You also want a tool that can be easily implemented into your operations. Avoid long, IT-heavy implementation cycles.

6. Fast Onboarding and Ease of Use

Quick Implementation Timelines

Aim to be able to go live with a new TMS in days or weeks, rather than months. For SMB shippers, few features are worth serious delays and extended downtime.

Intuitive User Experience

The biggest roadblock to adoption of a TMS (or software in general) is how quickly your team and carriers can adapt to it. Look for a streamlined interface with intuitive design. You want a TMS designed for operators, not engineers.

Minimal Training Requirements

Ideally, choose a TMS that requires minimal training to navigate. The goal is to reduce onboarding friction and adoption risk.

7. Reporting and Analytics

Spend Visibility

SMB shippers should prioritize enhanced spend visibility. This means being able to analyze costs by carrier, lane, mode, and business unit.

Carrier Performance Tracking

TMS carrier performance tracking can be robust: transit times, on-time performance (OTP), and more make it easy to identify underperforming carriers.

Data for Negotiation

With enhanced visibility, small and medium shippers can use these comprehensive data insights to improve contract rates during negotiation.

Frequently Asked Questions About TMS Features

What Are the Most Important TMS Features for Small Businesses?

The most important TMS features for small businesses include multi-carrier rating, automated carrier tendering, real-time visibility, freight audit and payment, ERP and WMS integration, faster onboarding and ease-of-use, and reporting and analytics.

What Does a Transportation Management System Actually Do?

A TMS, or transportation management system, is software designed to help you plan, execute, and optimize freight shipments.

How Do I Evaluate TMS Software for My Business?

Evaluate TMS software for your business by prioritizing the core features that will provide the most benefits to SMB shippers. Taking advantage of a demo or free trial will provide you with hands-on experience of how these functions might improve your operations.

See These Features in Action

Looking for a TMS that brings carrier quoting, shipment tendering, and settlement into a single workflow? Want to compare spot and contract rates side by side? Request a ShipperGuide demo today.