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.
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.
Visibility of contract and spot rates also helps ensure that you're always selecting the most cost-effective option.
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 metrics that update in real-time fuel smarter decision-making.
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.
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.
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.
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 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.
High-quality TMS tools update in real time, eliminating manual time spent chasing updates on freight.
A TMS should be able to compare invoices against expected rates, automating the process of invoice matching.
Additionally, transportation management systems should be able to help surface billing discrepancies, reducing costly errors and helping you optimize spending.
Some TMS software includes an option for exception-based review. This enables lean teams to conduct audits without dedicated staff.
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.
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.
You also want a tool that can be easily implemented into your operations. Avoid long, IT-heavy implementation cycles.
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.
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.
Ideally, choose a TMS that requires minimal training to navigate. The goal is to reduce onboarding friction and adoption risk.
SMB shippers should prioritize enhanced spend visibility. This means being able to analyze costs by carrier, lane, mode, and business unit.
TMS carrier performance tracking can be robust: transit times, on-time performance (OTP), and more make it easy to identify underperforming carriers.
With enhanced visibility, small and medium shippers can use these comprehensive data insights to improve contract rates during negotiation.
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.
A TMS, or transportation management system, is software designed to help you plan, execute, and optimize freight shipments.
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.
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.