Thursday, April 29, 2010

What is a TMS?

Transportation Management System or Logistics Management (TMS) – What is it?

A Transportation Management System is software that helps businesses manage the execution of its logistics supply chain, in particular coordinating and optimizing the movement of products and materials.

The general functions and benefits of a Transportation Management System (Logistics Software) include the following:

Shipment Load Planning and Shipment Routing Optimization – This functionality helps in areas such as determining the most cost effective mode to ship an order (truckload, ltl, air freight, intermodal, etc.), or the optimal way to combine multiple orders together into larger shipments. Carrier rate agreements and contracts are often housed within this area as well.

Routing Guide – Helping to ensuring vendor compliance to inbound routing guides is crucial to cost management.

Execution Management and Carrier Communication – This includes tools for assisting with carrier selection, calculating shipments costs (including line-haul, fuel surcharges, and accessorial charges), tendering loads and facilitating carrier communication (bills of lading and proof of delivery).

Visibility/ Shipment Tracking – Providing delivery status updates and alerts, this tool allows proactive program management and notice of potential delivery problems in advance.

Freight Bill Audit & Payment – Automating the freight audit and payment process, saving time and improving accuracy, or ending reliance on an outside third party.

Other functions:
Business Intelligence/ Reporting
Claims Management
Order Fulfillment Returns Management
Appointment Scheduling

Transportation Management Systems can be deployed on client’s systems or on-demand SaaS (Software as a Service).


visit our other blog: Truckload Pricing Trends and for more information on ecommerce order fulfillment services for ecommerce retailers and fulfillment for startup online retailers.