What Does A Transportation Management Software Do?

A transportation management system (TMS) is a software platform that helps businesses manage the physical movement of goods. It can be used to plan and optimize delivery routes, track freight across local and global routes, and automate previously time-consuming tasks, such as trade compliance documentation and freight billing.

Here are some of the key functions of a TMS:

Planning and optimization: A TMS can help businesses plan and optimize their transportation operations by providing insights into historical data, current market conditions, and future demand. This information can be used to generate optimal delivery routes, calculate freight costs, and identify potential savings opportunities.

Tracking and visibility: A TMS can track the movement of freight in real time, providing businesses with visibility into the status of their shipments. This information can be used to track delivery progress, identify potential delays, and resolve issues quickly.

Compliance: A TMS can help businesses ensure that their transportation operations are compliant with all relevant regulations. This includes tracking trade compliance documentation, managing carrier relationships, and ensuring that shipments are properly documented.

Automation: A TMS can automate many of the manual tasks involved in transportation management, such as carrier selection, rate negotiation, and freight billing. This can free up staff time to focus on more strategic activities.

TMS can benefit businesses of all sizes, but they are particularly beneficial for businesses that ship large volumes of goods or that operate in complex transportation environments. By automating tasks, providing insights, and ensuring compliance, TMS can help businesses improve their transportation operations and save money.

Here are some of the benefits of using a TMS:

Increased efficiency: A TMS can help businesses streamline their transportation operations and reduce the time it takes to move goods from one location to another.

Improved visibility: A TMS can provide businesses with real-time visibility into the status of their shipments, which can help them track progress, identify potential delays, and resolve issues quickly.

Reduced costs: A TMS can help businesses save money on transportation costs by optimizing delivery routes, negotiating better rates with carriers, and ensuring that shipments are properly documented.

Improved compliance: A TMS can help businesses ensure that their transportation operations are compliant with all relevant regulations.

If you are looking for a way to improve your transportation operations, a TMS is a valuable tool. It can help you save time, money, and improve compliance.

Here are some additional features that some TMSs may offer:

Carrier management: This feature allows businesses to manage their relationships with carriers, including tracking carrier performance, negotiating rates, and submitting invoices.

Load planning: This feature helps businesses plan the most efficient way to move freight, taking into account factors such as weight, volume, and delivery deadlines.

Routing optimization: This feature helps businesses find the shortest and most cost-effective routes for their shipments.

Real-time tracking: This feature allows businesses to track the movement of their shipments in real time, providing visibility into the status of their deliveries.

Document management: This feature helps businesses manage all of the documentation associated with their shipments, such as bills of lading, shipping manifests, and customs declarations.

Compliance management: This feature helps businesses ensure that their transportation operations are compliant with all relevant regulations.

The features that are most important for a business will depend on its specific needs. However, the features listed above are some of the most common and important features that businesses should consider when evaluating a TMS.

Here are some specific examples of how TMS can help businesses save money

Optimizing delivery routes: A TMS can help businesses find the shortest and most cost-effective routes for their shipments. This can save businesses money on fuel and other transportation costs.

Negotiating better rates with carriers: A TMS can help businesses negotiate better rates with carriers by providing them with insights into historical data, current market conditions, and future demand. This can help businesses save money on transportation costs.

Ensuring that shipments are properly documented: A TMS can help businesses ensure that their shipments are properly documented by tracking trade compliance documentation, managing carrier relationships, and ensuring that shipments are properly documented. This can help businesses avoid fines and penalties for non-compliance.

If you are considering implementing a TMS, there are a few things you should keep in mind:

The size and complexity of your business: The size and complexity of your business will determine the features and functionality you need in a TMS. If you have a small business with simple transportation needs, you may not need a TMS with all the bells and whistles. However, if you have a large business with complex transportation needs, you will need a TMS with more features and functionality.

Your budget: TMS can range in price from a few thousand dollars to tens of thousands of dollars. You need to decide how much you are willing to spend on a TMS before you start shopping.

The features and functionality you need: TMS come with a variety of features and functionality. You need to decide which features are most important to you before you start shopping.

Once you have considered these factors, you can start shopping for a TMS. There are a number of TMS vendors on the market, so you should be able to find one that meets your needs and budget.