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