Transportation Management
A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both incoming and outgoing, and making sure the shipment is compliant, proper documentation is available. This kind of system is often part of a larger supply chain management (SCM) system.
Sometimes known as a transportation management solution or transportation management software, a TMS provides visibility into day-to-day transportation operations, trade compliance information and documentation, and ensuring the timely delivery of freight and goods. Transportation management systems also streamline the shipping process and make it easier for businesses to manage and optimize their transportation operations, whether they are by land, air, or sea.
Source: Blue Yonder
TMS offerings
Businesses can buy a standalone transportation management system that can be integrated with their existing cloud or on-premises enterprise resource planning (ERP) software and SCM solutions. Some TMS solutions have trade documentation capabilities, or you can complement your TMS with a global trade management (GTM) application. Other, typically less feature-rich TMSs, are available as modules within ERP and SCM suites.
Plan, execute, and optimize for timely delivery of goods
A TMS can help any business plan, execute, and optimize the physical movement of goods.
Planning
A TMS helps the business select the optimal mode of shipment and the best carrier, based on cost, efficiency, and distance, including optimizing multi-leg carrier routes. A strong TMS can provide visibility into every stage of the supply chain, and together with global trade management functionality, it can also provide information on trade and tariffs, and if there are any potential delays that may happen because of customs and other trade regulations.
Execution
The execution features of transportation management systems vary widely but can include matching loads and communicating with carriers, documenting and tracking shipments, and assisting with freight billing and settlement. Some advanced TMS solutions also provide track and trace services—enabling real-time information exchange among carriers, distributors, warehouses, and customers. Such advanced systems may also have the functionality to handle complex international logistics, including providing proper import and export documentation making sure shipments are trade compliant.
Optimization
TMS optimization capacities usually include the ability to measure and track performance with reports, dashboards, analytics, and transportation intelligence.
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