A Transport Management System (TMS) is a logistics software that, through the use of technology and AI (artificial intelligence), helps companies plan, execute and optimize their product transportation needs.
It also complies with any specific requirements, as well as making sure all the paperwork is in order throughout the operation.
What does TMS stand for? TMS stands for Transportation Management Systems, which give visibility and insights into every-day transportation operations, as well as facilitating information and data, and documentation of commercial norms, while guaranteeing delivery times of goods and products.
As well as that, TMS’s prioritize the delivery process while facilitating the administration and optimization of companies’ transportation requirements.
So, what do we mean when we talk about a logistic TMS? A TMS is a software, platform, or digital tools that companies use to manage their logistics and transportation needs.
All in all, an effective TMS provides logistics managers with in-depth visibility into both their daily operations, and a bird's-eye view of their network's overall performance.
A transportation management system centralizes and organizes transportation data, allowing companies to:
The importance of transportation management systems is that they have a fundamental role in supply chains. Today, we live in a dynamic, mixed market economy, with a global business environment where transactions are constantly underway.
This, paired with a boom in online transactions, has made it of vital importance to have a management system in place to help successfully navigate complex processes regarding deliveries, business policies and regulatory compliance.
It’s worth noting that the implementation of a TMS has a direct impact on every part of a company's processes, starting from planning and procurement, to logistics and life cycle management.
Ultimately, the broad and deep visibility offered by a transportation management system leads to more efficient transportation planning and execution, which promotes and results in higher customer satisfaction. And, in turn, the proper use of a transportation management tool generates more sales that help companies grow and improve their profitability over time whilst increasing customer satisfaction.
A transportation management system has relevant features that benefit businesses. Some main features are:
Speaking in general terms, any company related to the supply chain uses some form of TMS, be that as a SaaS, or as an on-premise software. If a company needs to ship, move or receive goods, a transportation management system will always benefit them.
Organizations related to e-commerce, distribution companies, shippers, carriers, and anyone else who ships products and merchandise on a regular basis can use a TMS as added value.
With this in mind, a TMS manages multiple sections of transportation management and will ultimately benefit anyone involved in the areas of planning and decision-making, transportation execution and tracking, as well as reporting.
So, to answer the question on what companies use a TMS, basically, if the company has any involvement with the supply chain, it would be beneficial for them to have a TMS in place.
Learn about the benefits of implementing and using a TMS in your business.
With a TMS, all the information will be stored in one location and custom reports can be created to analyze costs and final invoices with a click of a button.
Just like servers and other types of technology, a TMS can, at times, run through a cloud service. This is known as a Software as a Service (SaaS) or a cloud-based solution. These provide real-time data, and have huge advantages over other types of TMS.
On the other hand, an on-premise TMS is loaded onto computers in a given location. While this has some security advantages, it also presents bigger challenges.
You may need the physical presence of a technician to update the software, troubleshoot, or troubleshoot your internal network or server connection. As well as that, on-premise TMS’s aren’t portable, which means it might tie you down to a specific location in order to access the data.
In contrast, cloud-based TMS are automatically updated, and can be accessed from anywhere with an internet connection, thus generating greater profit in the medium to long term.
Generally, this is due to the fact that, since they’re on a digital platform, users pay a monthly or annual fee to use it. Drivers, brokers, managers, and carriers can access the platform on the go, enabling collaboration, constant communication, and efficiency. In most cases, a cloud-based TMS is a better and more efficient option than on-premises options.
A cloud TMS offers great benefits, such as better economies of scale, a reduction in the total cost of ownership, little to no upgrade fees, and a faster ROI (return on investment).
With this in mind, a SaaS TMS provides further advantages, such as faster deployment, reduction in training and installation time, automatic updates, and increased security. Drivin is a SaaS TMS that will make your logistics more efficient, let's make contact: