One of the biggest trends in logistics has been related to improving efficiency and making supply chains optimal. In order to do that, reputable companies have integrated a transportation management system, also known as a TMS. They give 3PLs, carriers, and distributors an operational edge.
Implementing a TMS allows logistics teams to automate planning and carrier selection. It also provides real-time shipment visibility. In this post, we’ll explain more about the features of these solutions and how they can be integrated with other types of software.
A TMS is responsible for various processes in every stage of transportation. It also centralizes information and helps businesses make data-driven decisions that allow them to become more profitable and efficient.
A TMS is a software platform that helps businesses plan and execute the physical movement of goods in an optimal way. A TMS has dozens of features. Planning, optimization, shipment tracking, managing carrier contracts, and analyzing processes are just a few of them.
A TMS system can be compared to a digital control tower. It combines logistics data feeds with algorithms to select optimal routes, track shipments, or assign carriers automatically. Modern systems have a variety of innovative solutions that help businesses automate scheduling, forecast disruptions, and improve communications. Advancements in AI also allow TMS solutions to have predictive analytics capabilities. The end results are efficient supply chains and better transparency in transportation networks.
One of the reasons why TMS systems have become a staple in the logistics industry is the fact that they combine a variety of functionalities. This makes them an all-in-one solution for many organizations. Let’s examine five of the most important TMS features:
As transportation management systems have become increasingly complex, they have dozens of functionalities, and new TMS features are introduced constantly. That includes documentation and compliance tools, analytics solutions, multi-modal support, freight audit features, and more.
TMS, WMS, and ERP are among the most important solutions to ensure efficiency in the logistics industry. However, they are different in many aspects and serve distinct purposes.
The primary functionalities of a warehouse management system (WMS) are related to inventory control and managing warehouse workflows. In contrast, a TMS system handles inbound and outbound transportation outside the facility. By combining the features of WMS and TMS systems, businesses can have better control of storage and shipment operations.
Enterprise resource planning (ERP) software manages processes related to procurement, human resources, and finances. By integrating ERP and TMS systems, businesses can view carrier payments, deliveries, and other logistics operations.
Transportation management systems play a crucial role in logistics operations. We hope this guide has answered some of your questions regarding what a TMS is and how it can be leveraged to scale your business. Check out our answers to a few additional questions regarding TMS solutions.
Optimizing carrier selection, automating various processes, and consolidating shipments are just a few of the ways in which TMS systems can reduce costs. Furthermore, they minimize overpayment and improve carrier performance visibility.
The most common integrations are with WMS, ERP, and OMS (order management systems) software. Integration with carrier APIs or other custom-made systems also helps exchange data in real time and improve logistics processes.
Yes, one of the key features of TMS systems is that they support multi-modal transportation. This makes them flexible solutions that help organizations compare costs between different modes and choose optimal transportation solutions.
ShipperGuide is your trusted TMS. By combining various functionalities and features, ShipperGuide is the all-in-one transportation management software for your business. Schedule your demo and see what makes our solution the right option for your logistics operations.