Transportation Management System: All You Need to Know


Hardly any industry or organization can work without freight, whether it is regularly or weekly, or monthly. From distribution companies to e-commerce and more, every enterprise that needs transportation realizes that there are many aspects and phases of the shipping process. Starting from quoting to delivery, shipping freight looks for better ways to optimize cost and improve processes. However, manual labor or traditional methods are not efficient enough to achieve this. They are not only time-consuming but unreliable too. So, what’s the solution? Thanks to Transportation Management Software solutions , shippers can manage these issues effortlessly. 

Transportation Management Systems, also known as TMS, offers complete visibility in day-to-day transportation operations, documentation, trade compliance information, etc., ensuring timely delivery of goods. This smart system has taken care of logistics and global trade for the past decade, bringing positive and beneficial changes in the sector. Moreover, TMS is now considered a significant part of enterprise software development that helps companies with different languages and operations across the globe to streamline their systems. There is no denying the fact that for those who move freight regularly, the Transportation Management System is a blessing to optimize shipping management. 

We know that most of you are wondering what exactly TMS does and how it brings positive changes in companies. Well, this blog has all the answers you need to know.


What Is a Transportation Management System?

TMS or Transportation Management system is a logistic platform using cutting-edge technology to streamline business processes. It is an effective tool to help companies optimize, plan, and execute the movement of goods, whether incoming or outgoing. The enterprise data management solution is also a subset of supply chain management that concerns transportation solutions and sometimes also encapsulates enterprise resource planning (ERP) is also called a subset of supply chain management that concerns transportation solutions and sometimes also encapsulates enterprise resource planning (ERP). It also makes sure that the shipment is compliant and proper documentation is available. 

The primary function or aim of TMS is to simplify shipping and logistics operations, enhance supply chain visibility in real-time, and reduce costs. Different organizations can integrate TMS in their existing system, such as retail software solutions, third party logistics solutions, eCommerce software solutions, and much more to amplify benefits. Whether a business is conducted by air, land, or sea, it makes it easier to tackle operations and optimize them. Shippers can automate the processes and receive all the valuable information with TMS which saves time and reduces costs on future shipments. 

Although TMS is used by many professionals and businesses, it is primarily helpful for the ones involved in shipping, movement, and receiving goods regularly.

  • Manufacturers
  • Distributors
  • Ecommerce companies
  • Retail businesses

TMS system tools are used in different areas, including:

  • Procurement
  • Shipping
  • Load building
  • Audits
  • Route planning and optimization
  • Payments
  • Yard management
  • Operations
  • Order and supply chain visibility
  • Carrier management
  • Freight rating and shopping

Almost every enterprise in all the industries, such as construction, e-commerce, life sciences, etc., make the best of TMS, a trusted logistics software development company. Mostly, businesses that spend over $100 million or more annually on freight are the major users. However, with cloud-based solutions, the software has become more affordable for smaller enterprises as well to seek the benefits of incorporating TMS into their supply chain. It replaces calls or emails with partners as it sits between ERP and WMS (Warehouse Management System), enabling orders and information to flow seamlessly. It also speeds up the processes and makes the supply chain faster and more efficient.

Benefits of a TMS

Yes, we have discussed some of the benefits of TMS in brief above but the software is much more than that. It is way beyond streamlining communication or managing the supply chain. This transportation software covers all the aspects and areas, providing a plethora of benefits. It affects planning, orders, payments, and lifecycle management, and for all the good reasons. needless to say that improved efficiency further enhances customer experience which adds to leads and growth of the business. It also helps to meet the rising demands and gain a competitive advantage on a global scale. Below, we have discussed other benefits of Transportation management software in detail:

Simplified Processes: A good and powerful TMS simplifies carrier selection processes by allowing businesses to evaluate the merchandise being sent and matching it with carriers in the network. This further enables them to revisit shipments and match similar loads instantly to the appropriate carriers. As all the aspects of the supply chain are accomplished in one place that communicate over lines, the supply chain becomes more efficient. Furthermore, it provides data and reports in real-time and identifies errors that are difficult to find manually. 

Freight Tracking: Track freight on the road and get real-time alerts once shipments are delivered with transport software development. The system sends notifications for any transit exceptions or unexpected delays. When a shipment is in transit, there are chances of a lot of things to happen. This is where TMS comes into the picture by tracking and informing all the updates. It shares the details immediately after something happens so the business can adjust accordingly. It also mitigates human errors and tells what’s causing delays.

Technological Capabilities: A TMS provides shippers with the technology and data to make better and informed routing decisions based on quotes, carrier mix, and coordinate transit time. It is empowered with advanced features and technologies that accelerate many industries and create others as well. Earlier, it used to consume a lot of time and energy but with a centralized location, it eliminates unnecessary stress and a considerable amount of labor spent in the booking process. 

Better Visibility: Enterprises always look for effective methods and tools to gain complete supply chain visibility. However, they couldn’t attain the desired results. With transport management solutions, businesses get updates and alerts from time to time, thereby helping stakeholders plan and adjust in real-time. This software also contributes to planning inventory effectively, improving management, matching carriers, and moving shipments. This improved visibility through a shared system allows to move parts around without any hassle and make adjustments as per requirements.

Optimized Shipments: The tracking system in transportation management system also optimizes shipments by making use of data to create pool point distribution programs and reduce costs. It also helps businesses set up inbound programs for better efficiency.

Business Insights: There are chances of multiple shipments at once to different locations. Of course, this can lead to a bit of confusion regarding invoices. Hence, companies need a seamless and effective tool to oversee the shipments and get all the insights for detailed reporting. With a TMS distribution and payment tool, one can analyze and customize reports while identifying errors. The information is stored in one place and all the significant data concerning discrepancies between final invoices and rates are highlighted accurately. 

Increased Efficiency: The real efficiency for any business is when it witnesses overall growth with reduced costs. Shipping logistic software, TMS offers this benefit by saving expenses related to labor and management. It also improves response to customer demands. As businesses get a better insight into operations, they can make strategic changes that are essential for refining.

Improved Customer Support: Another key benefit of TMS is analytics and reporting which add convenience to see the impact of any decision. Enterprises can track delivery time from carriers and evaluate the consistency or any flaws. Based on the data collected, they can make informed decisions about carriers.

Transportation Management Software Solutions 

Considering the immense popularity of TMS and the benefits it offers across industries, IT companies have come up with a comprehensive range of solutions. The aim is to serve the specific needs of different customers and address their needs related to traffic, parking, dispatch, car rental, and public transport management programs. 

Parking Management System

This is a smart parking solution that is suitable for different parking areas that digitizes the entire parking process, including multilevel and multi-tenant parking. The parking management system manages the spaces and processes related to vehicles, visitors, and payments. It integrates with access control hardware and a visitor management system to provide better results for shared parking spaces. It automates the daily tasks, such as identifying the right parking slots, generating tickets, penalties, etc. 

Car Rental Management

This is another popular service offered by transportation software companies to add convenience to businesses and customers collaborating for rental cars. It tracks every car that is deployed, controls it, and administers it. Both the involved parties can manage the schedules across geographies using car rental management software. A company can list all the rental cars on the website, sell equipment, manage accounts, and more. 

Public Transport Management 

This software solution aims to help make public transport services more efficient for passengers, operators, and drivers. It provides real-time driver and passenger information while automating fare collection and security systems. Apart from improving cost-effectiveness, it also reduces environmental impact. The system also includes public transport priority at traffic lights and makes the entire public transport streamlined.

Dispatch Management Software 

A dispatch management software is specially designed to automate routing and scheduling processes. It offers a simpler way to coordinate routes, deliveries, and shipments as manual labor demands time and also is prone to costly errors. It also allows businesses to oversee transportation types, be it shipping, buses, airlines, and more. 

Traffic Management System

The end-to-end Traffic Management system offers in-depth insights into daily traffic and includes road traffic control systems, signaling terminals, and various information displays. It also curbs ingestion and transfers information to the traffic management console. The software also detects and responds to incidents and shares data with drivers via traveler information systems. 


After going through these points, we are sure that the Transportation Management System offers a spectrum of benefits, such as scalability, cost and time efficiency, better customer support, and whatnot. However, to reap all these benefits, it is important to find the right development partner.