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