A transportation management system is special software used for planning, executing, and enhancing the shipment of goods. Users do three essential tasks in a TMS: book the shipment, find and compare rates and track the movement to delivery.

The wider goal of using a Transportation Management System is to reduce costs, enhance shipping efficiency and gain supply chain visibility in real-time to ensure customer satisfaction.

How Do Transportation Management Systems Work?

A TMS is not only an archive of detailed information about carriers. Still, it is also a transactional and communication system that allows users to plan, execute, and track their shipments. It needs to be appropriately integrated with carrier systems and data sources to download the carrier information to do all the above things.

It also needs to facilitate the entry of customer orders that will specify what needs to be shipped. The orders usually come automatically from order management systems and ERP combined with the management system.

Sometimes, a TMS can be integrated with a WMS or warehouse management system to better coordinate tasks at the warehouse and freight shippers interface. Those tasks are labor scheduling, yard management, cross-docking, and palletization of goods.

The three important SCM systems are WMS, ERP, and TMS, each of them has an important and unique role in processing orders. Integration among the three systems is important to get the appropriate product to customers efficiently on time.

Importance of TMS

Many companies take the help of transportation management software companies as it is necessary for transporting a good volume of goods or hiring service providers to do the work. The difficulties and problems in today’s supply chains, regulations, and transport modes make the task hard without using technology.

Automating such complicated processes can help ensure that transportation services are as secure as possible without much cost and loss of quality. Two-thirds of respondents to a recently conducted survey reported saving money on freight, while a third wanted to save 10% or more.

Advantages of TMS

  • Transportation management software can benefit companies in different ways-
  • Lessened distribution and warehouse cost via better fleet management, space and labor use, and coordination between fulfillment and transportation functions.
  • Better customer satisfaction due to a more responsive shipping process
  • Supply chain visibility where you can track and monitor orders and shipments in real-time
  • Enhanced inventory management and forecasting are due to better accountability and visibility in the supply chain network.
  • Improved administrative costs and errors in invoicing from freight payment and different auditing processes.

Bottom Line

If you are a product-based company and are having difficulty in customer service and tracking orders, you can take the help of a transportation management system. With the help of this, you can efficiently track your orders and make sure your products are secured. This will aid in better customer satisfaction and save you from fraud.

Robert Simmons is the author of this article. For more details about Truck Fuel Management System please visit our website: axonsoftware.com