TMS (Transportation Management System) - What is it?

A Transportation Management System is softwaresurcharges, and accessorial charges), tendering loads
that helps businesses manage the execution of itsand facilitating carrier communication (bills of lading
logistics supply chain, in particular coordinating andand proof of delivery).
optimizing the movement of products and materials.Visibility/ Shipment Tracking - Providing delivery
The general functions and benefits of a TMS includestatus updates and alerts, this tool allows proactive
the following:program management and notice of potential delivery
Shipment Load Planning and Shipment Routingproblems in advance.
Optimization - This functionality helps in areas such asFreight Bill Audit & Payment - Automating the
determining the most cost effective mode to ship anfreight audit and payment process, saving time and
order (truckload, ltl, air freight, intermodal, etc.), orimproving accuracy, or ending reliance on an outside
the optimal way to combine multiple orders togetherthird party. It is estimated that performing regular
into larger shipments. Carrier rate agreements andfreight invoice audits can save 4-5% in transportation
contracts are often housed within this area as well.costs per year.
Routing Guide - Helping to ensuring vendor complianceOther functions:
to inbound routing guides is crucial to costBusiness Intelligence/ Reporting
management. Centralizing the routing instructions forClaims Management
a company with multiple shipping locations canReturns Management
improve compliance.Appointment Scheduling
Execution Management and Carrier Communication -TMS systems are can be deployed on client's
This includes tools for assisting with carrier selection,systems or on-demand SaaS (Software as a
calculating shipments costs (including line-haul, fuelService).