What is a Transportation Management System ?


A transport software solution (TMS software) helps companies transport goods from the warehouse to destination efficiently, reliably and inexpensively. TMS encompasses solutions for moving goods of any kind and also has included intermodal movements. TMS software includes transportation of goods both domestically and internationally, using means of transport either owned by the company or by an external service provider. Transport volume handled by the program range in size from parcels, bulk goods in industrial quantities.

TMS is a software that streamlines the transport of goods and is an integrated part of an ERP system.

If you are distributor of all kinds, implementing TMS software you will:

  • reduce the number of vehicles used
  • improve customer service quality
  • lower the cost of delivery
  • reduce time required for inventories
  • shrink waiting times
  • have capabilities/new methods to deliver goods to customers

If you’re looking for a transportation software then you must orient yourself to a quick solution in terms of return on investment. TMS software features are:

  • ensuring the optimal route planning for transport
  • facilitates the transformation of delivery orders in dynamic routes
  • options that allow real-time tracking of vehicles in relation to the planned routes
  • provides strategic planning of logistics activities, eliminating manual plotting estimates and risks

Installing this system in the company will create support for:

  • efficient use of vehicles
  • adapting to the hours of delivery requested by customers
  • scheduling orders arising at the last moment
  • reduce logistics costs
  • efficiency in warehouse management

The more you use the transportation management system, the more you reduce the time for freight management and time working on other projects, such as filing fees. If  a TMS is integrated, for example, in an ERP system, you can reduce the errors in the database because you will lose less time to correct these errors.

Benefits of Implementing a Transportation Management Software:

  • some softwares can connect to transport existing GPS systems
  • new delivery capabilities – reducing the number of kilometers traveled by optimizing routes and areas
  • decrease delivery costs and waiting times
  • reduce the number of vehicles used and the routing duration
  • improve quality of customer service – the fact that a transportation software allows you to use reports and data analysis will help a lot in customer service because you can see specifically what are the effects of choices made by you and thus keep your clients more knowledgable

These challenges represent real opportunities, that need to be understood and explored. Using the right tools, they can increase the quality of customer service, reduce costs and increase profits by eliminating excess mileage, overtime costs made by drivers and vehicles.

Basically the main functionality of a transportation software consists in the ability to optimize the operations in your company, helping you to maintain and increase business competitiveness by reducing transportation costs massively.