Transportation Management System: Benefits, Features, and Main Providers

Transportation is one of the most important parts of the supply chain process. It combines a lot of activities that demand serious organization and control. Regular tables and spreadsheets are definitely not enough. You need some specialized technology to handle your logistics. That’s when transportation management systems step into the game. It can really help you boost your operational effectiveness. We want to tell you more about this system and its features. Keep reading and learn how you can benefit from it.

What Is A TMS?

First of all, let’s define what a transportation management system is all about. It’s a software solution that can optimize how you move goods from one place to another. It’s basically like a command center for all your transit procedures. You can plan and monitor all your shipments there.

Some of its main functions are

• Route optimization;
• Carrier choice;
• Freight audit and payment;
• Load tracking;
• Performance analytics.

These systems use sophisticated algorithms and live data. You can handle complex logistic processes with their aid. A TMS automates different coordination and administration activities. It can really reduce your workload and lead to faster delivery times.

You can always turn to a specialized transportation software development company to get a system devised for you. They work with different innovative developments like AI and ML. They can craft a tailored system that will meet your exact requirements.

Transportation Management System Features

A TMS is a sophisticated tool that can really change your approach to logistics management. It simplifies a range of operations and makes the entire process more effective. We already noted some of its functionalities. Now, let’s talk about the features it offers in more detail.

Planning

Every transportation process starts with a plan. You need to clearly define how your goods will get from point A to point B. A TMS can help you make your planning more precise and timely. Below, we gathered some of the attributes it offers.

Route Optimization

This system can calculate the most efficient routes for shipments. It evaluates points like 

• Distance;
• Traffic patterns;
• Delivery deadlines, etc.

This functionality is essential when it comes to automotive software development. It allows you to minimize transit times and reduce fuel costs.

Load Planning

This tool allows you to fine-tune load configurations as well. It considers

• Weight distribution;
• Cargo characteristics;
• Capacity constraints, etc.

So, you can consolidate shipments and minimize empty space with its help.

Carrier Choice

Also, it can help you pick the right carriers. The system evaluates their performance and availability. Then it intelligently pairs shipments with suitable carriers. 

Delivery Time Window Control

A TMS facilitates the oversight of delivery time windows. It can align your schedules with customer requirements. So, you can refine your delivery routes to ensure on-time arrivals.

Execution

After you’re done with the planning it’s time for actual transportation. TMS execution features can make this process much smoother. Here are a few things it offers.

Load Tendering

The system automates the assignment of shipments to carriers. It considers different aspects, like 

• Cost;
• Service level agreements;
• Transporter efficiency, etc.

It accelerates the tendering procedure and leads to better cost outcomes.

Order Consolidation

Also, a TMS automatically consolidates orders. It analyzes shipment data and merges multiple orders into consolidated shipments. This can reduce expenditures and decrease the environmental footprint. 

Freight Rate Management

This system offers tools for freight rate negotiation. It analyzes historical rate data. With this info, you can negotiate favorable rates for yourself. It can really help you avoid overcharging.

Visibility

Last but not least, we want to talk about visibility features. This system can help you supervise each stage of the supply chain. Below, you’ll find the main functionalities.

Real-Time Tracking

A TMS lets you monitor shipments from origin to destination. It has incorporated GPS technology and tracing systems. So, you can track the location and status of delivery with precision.

Event and Document Management

This platform automatically triggers alerts for milestones like 

• Pickup;
• Delivery;
• Delays;
• Route deviations, etc.

Also, it centralizes the document management. You can easily store and retrieve vital documents within the system.

Analytics and Reporting

Also, TMS offers advanced analysis. It uses past data and your current metrics. Then it will create a report with all the trends and suggestions for modifications.

We also want to mention that many companies use AI in transportation management to boost these attributes even more. The system becomes more intuitive with this integration. You can use its predictive analytics and NLP capabilities. So, we definitely recommend trying out this combination as well.

Biggest Benefits of TMS

You already know about the main functionalities of transportation management systems. This platform can completely change all your logistics processes for the better. Now, let’s take a look at some of the biggest advantages it can give you.

Improved Visibility

As we’ve noted above, TMS gives a view into the whole transportation process. It gathers data from multiple sources, including 

• Orders;
• Inventory;
• Carriers;
• Logistics partners, etc.

It gives you a complete picture of your supply chain. So, you can identify any inefficiencies and refine them right away.

Streamlined Operations

Also, these systems can automate many manual tasks. It can really ease the organizational overhead on you. For instance, you can integrate it into your retail software development to boost transportation operations. It will give you the possibility

• Automate order processing;
• Optimize inventory distribution;
• Reduce stockouts;
• Fine-tune delivery routes;
• Handle carriers effectively, and much more.

Cost Reduction

As we’ve noted several times, TMS can really help you optimize your expenses. It can reduce fuel usage by suggesting the most appropriate routes. Also, it compares carrier rates. So, you can choose the one that suits your budget the most.

Moreover, it automates the management of accessorial expenses, like

• Detention fees;
• Fuel surcharges;
• Accessorials.

You can audit them and ask for more suitable terms. Plus, you can improve the inventory turnover rates with its help.

Better Collaboration

This system is your central platform for cooperating with shippers, carriers, and suppliers. It allows you to share info in real time. Plus, all the parties have access to 

• Shipment status;
• Delivery schedules;
• Performance metrics, etc.

It also offers shared planning boards and collaborative tools. So, you can easily coordinate all your activities.

Scalability and Flexibility

TMS solutions are highly scalable and adaptable. They will accommodate your needs as your company keeps growing. This system gives opportunities for customization and configuration. It supports different transportation modes and you can merge it with other systems.

Main Providers 

We can all agree that a transportation management system is definitely a great solution. However, you need to choose it thoughtfully. There are various options available. Below, we gathered some of the well-known providers you can consider.

Oracle

The first alternative we want to offer is Oracle. Their TMS offers full-cycle logistics management capabilities. It has advanced optimization algorithms and live visibility. Also, OTM supports different transportation modes. So, you can manage diverse networks and optimize multi-modal shipments. 

You can combine their TMS with other solutions they offer, like 

• Enterprise resource planning systems;
• Warehouse management systems;
• Trading partner networks, etc.

SAP TM

The next option is SAP TM. It is a part of SAP’s broader supply chain management suite. They offer integration with IoT devices and telematics. So, you can monitor all the activities and quickly respond to any changes.

Also, their TM can help you stay compliant with regulatory requirements. It will manage your 

• Documentation;
• Permits;
• Customs declarations.

SAP offers strong reporting tools. It has embedded dashboards and ad-hoc query capabilities. They can really help you improve your strategies and decisions. 

JDA

Another option we want to suggest is JDA. Now it is a part of Blue Yonder. Just like two previous alternatives it offers powerful monitoring capabilities. So, you’ll always know where your shipments are and when they’ll arrive.

Also, their TMS simplifies the process of selecting and booking carriers. It evaluates their performance and suggests the most suitable options. Plus, they offer customizable features and flexible deployment alternatives.

MercuryGate

Last but not least, we recommend collaborating with MercuryGate. It is a leading provider of cloud-based transportation management software solutions. They’re popular because of their flexibility and strong functionalities.

Their TMS supports diverse modes, including 

• Truckload;
• Less-than-truckload;
• Intermodal; 
• Ocean;
• Air;
• Parcel. 

Also, it’s built on a reliable cloud-based architecture. The systems can handle large transaction volumes. Plus, it offers disaster recovery and strong security features.

Conclusion

A proper approach to transportation is extremely important. However, it’s not possible to handle it manually anymore. You need some comprehensive digital solutions. A transportation management system is your best alternative.

It can help you control all the stages of logistics processes. These systems can automate different activities and lessen your load. Plus, they can help optimize certain processes and save you money. All you need to do is find a reliable provider and get familiar with the TMS functionalities.

We hope that our guide was helpful. Get started with a TMS and you’ll see how beneficial it can be!