Why choose a TMS?
A Transport Management System (TMS) is dedicated software for transportation management. It provides precise control over shipments and measurable time savings.
As a complement to an ERP or inventory management solution, a TMS is essential for companies that make hundreds or thousands of deliveries to their customers every day.
In reality, there are two main types of TMS that cater to distinct roles:
- Shipper TMS, dedicated to shippers.
- Carrier TMS, dedicated to transporters.
What is the purpose of a TMS?
Transportation plays a crucial role in the supply chain because the goods are handed over from the shipper to a service provider, who becomes the only physical contact between the client and the company. Moreover, clients increasingly seek lower costs and shorter lead times.
The TMS is designed to manage all transportation operations throughout the supply chain in real-time for companies of all sizes. It is a significant asset in optimizing the company’s needs and activities, providing time, productivity, and cost savings by enabling analysis of gathered information.
What are the advantages of a TMS?
Companies seek TMS solutions to better organize themselves and satisfy their clients.
The TMS ensures transportation and logistics services on behalf of each user. Some providers are offered a loading, delivery, and billing schedule, which provides reliable traceability for various operations such as order management and goods tracking. This is a real advantage for carriers with a fleet of trucks and drivers.
(Logistics often consume a lot of time, and the TMS is an essential tool for it. However, it’s important to note that the actual on-field reality doesn’t always align with the clarity of the software compared to the routes displayed by the drivers.)
TMS enables more efficient planning of shipments and routes.
It also facilitates operational and administrative monitoring of transportation through real-time visibility of shipments (traceability) and prompt reporting of any unforeseen events (dispute cases, application photos, etc.).
Lastly, the Transport Management System automatically generates performance indicators (on-time delivery, CO2 emissions, truckload rates).
Negotiating and discussing these aspects with service providers and drivers is necessary.