| According to market research, the | | | | |
| Transportation Management Systems (TMS) | | | | Transportation management solutions that have |
| market had exceeded $1 billion in 2006. | | | | been developed are designed to automate a |
| Through the years, the objective of a TMS | | | | business firm's transportation network, both |
| implementation remains to be the achievement | | | | inbound and outbound. This instrument paves |
| of customer service level requirements at the | | | | the way towards a more efficient day-to-day |
| lowest possible cost. | | | | operations including source to shipment |
| | | | assignments. Moreover, by ensuring a smooth |
| Transportation Management Systems (TMS) is a | | | | flow of these operational activities, |
| software application, often web-hosted, that | | | | relationships with suppliers and carriers may |
| is used as part of logistics management | | | | be strengthened. The benefits of integrating |
| especially for activities like managing | | | | TMS into a company's operation strategy are |
| shipping units, shipments that are outbound | | | | not limited to the increased efficiency of |
| and intra-company, inbound shipment | | | | the supply chain. By eliminating logistical |
| scheduling, bills of lading generation, | | | | problems, companies can focus on providing |
| carrier or transportation mode selection, | | | | quality services to customers. Consequently, |
| freight bill auditing and payment and | | | | with high customer satisfaction, overall |
| processing of loss and damage claims. These | | | | profitability of a firm will increase. |
| systems often feature a "dashboard" or a | | | | |
| graphic user interface portal. The dashboard | | | | Management of transportation facilities is |
| displays data according to key success | | | | often associated with the concept of |
| factors that are relevant to the user. | | | | logistics and supply chain management. These |
| | | | two principles are primarily concerned with |
| Companies, especially those with complex | | | | the smooth flow of certain goods from the |
| supply chains, make use of TMS so as to | | | | supplier of a manufacturing firm to the end |
| manage and track shipments that may be | | | | users which are the firm's customers. Aside |
| carried by air, land or sea. Several shipment | | | | from transportation, other important |
| options are available for clients including | | | | logistical concerns are inventory management, |
| truck, parcel, intermodal, private fleet, | | | | materials handling, warehousing, inventory |
| rail, or through domestic carriers. Some | | | | management, and customer service. For various |
| systems allow clients to track their | | | | businesses in the United States, logistics |
| shipments online. Other TMS incorporates | | | | make up 20 to 30 percent of total operating |
| Global Positioning System navigation | | | | costs. By utilizing an ideal TMS program, it |
| technology to enable fleet managers to | | | | will be more convenient for business |
| monitor and dispatch vehicles in accordance | | | | executives to plan and implement supply chain |
| with shipment schedules. The advancement of | | | | activities. In addition, performance |
| technology has made it possible to transport | | | | efficiency of the entire supply chain will be |
| goods in virtually any mode and integrating | | | | guaranteed and the company will benefit from |
| all these can be made simple with the right | | | | cost savings. |
| applications. | | | | |