TMS software automates such functions as carrier selection, routing and rating, supply chain visibility, and freight audit and payment, which helps users reduce their shipping and administrative costs by efficiently, reliably and cost-effectively moving freight from origin to destination. This technology supports both planning and execution, as well as a wealth of business intelligence, to drive stronger strategic and tactical decision-making.
For logistics professionals charged with the movement of freight, a TMS delivers transportation efficiencies and provides real-time dashboards, while handling a myriad of other tasks that are inadequate and costly when conducted by phones, faxes and spreadsheets.
Having evolved significantly over the past 20 years, such systems are available as standalone software packages, as part of a larger Enterprise Resource Planning (ERP) solution, or as Software-as-a-Service (SaaS) by partnering with a third party logistics (3PL) provider. Regardless of the technology delivery method, a TMS tackles the freight movement puzzle by handling single parcels to bulk commodities and everything in between.
TMS solutions oversee the movement of all inbound and outbound freight modes at the domestic and international levels. TMS fleet management capabilities are usually focused on the shipper’s own transportation assets while its planning and execution functions monitor and track movements involving outsourced service vendors such as 3PLs.