Home > Articles > Transportation Management System What Is a Transportation Management System? Transportation Management Systems Help You: Optimize shipping routes Reduce transportation costs Enhance shipment visibility Streamline carrier communication Enhance load planning efficiency What is a transportation management system, and how can TMS software boost operational efficiency? Transportation management is the logistical arm of supply chain management by automating and overseeing the flow of items. Primary functions include setting rates, optimizing routes, coordinating deliveries and tracking goods. A TMS handles these manual, time-consuming processes quickly and accurately. A wide range of industries use a TMS: Retail and Manufacturing eCommerce Pharmaceuticals Food and Beverage Third-Party Logistics (3PL) What’s the usability of a transportation management system across industries? They improve efficiency by offering real-time visibility into items in transit, delivery accuracy and detailed analytics. A TMS is a lynchpin for timely, cost-effective and efficient operations in an economy that values rapid and precise deliveries. Here are some other ways a transport management system can make life easier Optimize Shipping Routes Sophisticated algorithms and real-time data help determine the optimal shipping route based on factors such as cost, time, distance, transportation mode and service level. They also consider carrier rates, destination, lead times, shipping volume and more. The system analyzes data to find the best path based on specific needs, significantly reducing transit times and costs. This optimization enhances visibility into the transportation process, letting shippers track shipments in real time and address concerns promptly. Transportation management systems achieve route optimization through modules like: Carrier Rates Analysis Destination Considerations Transportation Mode Selection Carrier Performance Evaluation Lead Time Assessment Real-Time Traffic and Weather Conditions Monitoring Reduce Transportation Costs Cut costs by transferring resources from healthy sections of the supply chain to areas that need them. Automatically consolidate shipments into their most optimized forms to save space and reduce truck usage. Consolidation helps arrange shipments by weight and optimal grouping. Streamlining billing processes can cut resource waste. Manual accounting entries often lead to expensive errors, but a transportation management system can speed up tasks and boost accuracy. If you’re looking to save money, make sure these modules are included in your final choice: Invoice Management Carrier Cost Calculation Load Optimization Shipment Consolidation Claim Management Cost-Plus and Door-to-door Models Enhance Shipment Visibility TMS systems improve shipment visibility by enabling real-time tracking, superior inventory management and dynamic workflows. Shippers and logistics service providers can gain real-time visibility into freight in motion, track carriers, manage day-to-day transportation operations, and exchange compliance information and documentation. Relevant software modules in transportation management systems include: Procurement Supply Chain Control Tower Data Repository Freight Settlement for Audits Invoicing Functionality. Streamline Carrier Communication What is a TMS’ role in enhancing collaboration? It can improve carrier communication through mobile dispatching, automated updates, one-click dispatching for drivers, two-way communication and mobile reporting. It simplifies back-office tasks, enhances freight and apparatus pairing, and enables intuitive trip building to improve communication. What’s included in a TMS to facilitate this? Fleet Management Accounting Module Driver Management and Communication Enhance Load Planning Efficiency Freight optimization tools automate load planning, reducing human labor hours. This tool groups open shipments into loads depending on several parameters, including ship and delivery date flexibility, weight per shipment, number of parts, driver hours, and more. By selecting settings and running the optimizer, you can automatically build loads based on the findings, saving time and lowering costs. Relevant TMS modules include: Freight Optimization Load Building Optimizer Tool Real-Time Tracking FAQs How do I create a TMS RFP? Assembling a solid transportation management RFP is a daunting task. While we can’t go into the entire process here, we can cover the major steps involved in creating one: Form a Team: Assemble a diverse group with relevant expertise to evaluate proposals. Set Criteria: Consider factors like software functionality, support, pricing and evaluation timelines. Draft RFP: Include an introduction, scope of work, deliverables, timelines and budget. Select Channels: Choose suitable distribution methods like email, online portals or direct mail. Establish Timeline: Define the RFP process timeline and proposal submission deadline. Set Submission Guidelines: State the expected format, necessary documentation and submission guidelines. What is a transportation management system worth? The cost of a TMS system varies depending on complexity, functionality and deployment style. Implementing a simple option can cost around $50,000, whereas an advanced, feature-rich system may be around $250,000. However, development expenses aren’t the sole concern. Significant implementation costs vary depending on integration charges, system complexity and consulting fees. Implementation can take a while. A system of intermediate complexity typically runs for four to five months. However, more complicated systems can eat up nine months to a year. Is logistics management the same as transportation management? No. Logistics management involves the planning, implementation, and control of the movement and storage of goods and services. Transportation management focuses specifically on the movement of goods from one place to another through activities like route planning and carrier selection. What are the four basic functions of transportation management? Transportation management helps you optimize shipping routes, reduce transportation costs, enhance shipment visibility and streamline carrier communication. What is the study of transport management? Transportation management explores the processes, logistics and strategies that safely move goods and services to their destination. Research covers means of transportation, routing, scheduling, vehicle maintenance, regulatory compliance and the use of transportation management software. What are examples of transportation management systems? Examples of transportation management systems include Oracle Transportation Management, Transplace TMS, MercuryGate TMS, JDA TMS and SAP Transportation Management. Who needs a transportation management system? Businesses that require efficient handling of their logistics and supply chain operations typically need a TMS. Manufacturers, eCommerce businesses, logistics service providers, freight shipping enterprises, retailers and distribution companies are vital players. What are the future trends in transportation management systems? Future transportation management trends include using artificial intelligence, automated fare collection and real-time data to manage freight efficiently. These technologies will improve route optimization, delivery times and sustainable decision-making. How does a TMS integrate with other business systems? A TMS integrates with other business systems like ERP (enterprise resource planning), WMS (warehouse management system), and CRM (customer relationship management) through APIs (application programming interfaces). Integration allows seamless data exchange and coordination between systems, resulting in streamlined operations, real-time visibility across processes and improved decision-making. How do I select a transportation management system? Choosing the best TMS requires you to consider your company’s size, budget and preferred implementation approach. By preparing specific questions for possible providers, you can determine how effectively their system meets your specific needs and long-term objectives. Use our transportation management checklist to easily build a list of what you need from TMS software based on your business requirements. Have a question about which software vendor is right for you? We’d love to help! Reach out to our team for individualized recommendations by messaging [email protected] or via phone at 855-850-3850. Read More Resources for Software Selection Product Directory In-Depth Comparison Report Requirements Template Pricing Guide SCM Inventory Management Procurement Warehouse Management Most Popular Articles TMS Popular Posts Top Transport Management System Requirements And Features Checklist The Best Cloud Transportation Management Software Of 2024 How To Create A Transportation Management System RFP Logistics Management: A Comprehensive Guide What Are Inbound And Outbound Logistics? A Comprehensive Guide Recent Articles Recent TMS PostsWhat Are Inbound And Outbound Logistics? A Comprehensive GuideWhat Is Logistics Outsourcing? A Comprehensive GuideTop Transport Management System Requirements And Features ChecklistKey TMS Modules: A Comprehensive GuideThe Best Cloud Transportation Management Software Of 2024 See More Research and Reports Quickly find the best assets available for your TMS selection research here. Our Market Research Analysts have clearly summarized and reviewed each asset to help you select only the assets you need. TMS Price Guide Preview & Request Confidence Comes from Data Transportation management system selection is complex and beset with problems for both IT buyers and solution providers. We do three things to make it fast and simple: FREE Software Selection Platform Our platform provides best-practices, including requirements templates & vendor comparisons, to help you make the right decisions for your unique needs, in a fraction of the time. Try it FREE. Start Selecting Software Aggregated Reviews We have collected every software review available online, crunched every last word using our proprietary Sentiment Analysis algorithms, all so we can tell you how a software product is viewed in its marketplace, retrospectively. Get TMS Reviews Professional Analysis We relentlessly collect and analyze data about software, then compile and share it so every company has the same access to the information. The information we gain is then used in our Software Selection platform to help you find the right software. See Analyst’s Top TMS Picks Your Guides Our industry journalists proudly distill the helpful information you read on SelectHub, always on the mission to share what matters so you can make your best decisions independently. Transportation management system articles are written and edited by: Zachary Totah Content Manager As SelectHub’s Content Manager, Zachary Totah leads a team of more than 35 writers and editors in their quest to provide content that helps software buyers find the right system for their company. Show More Hunter Lowe Content Editor and Senior Market Analyst Hunter Lowe is a Content Editor and Senior Market Analyst at SelectHub. He writes content for Construction, Inventory, Warehouse, and Supply Chain Management. Show More Aditi Parihar Market Analyst Aditi Parihar is a Market Analyst at SelectHub. She writes content for human resources, inventory management, transportation management and procurement. Show More Mahima Baghel Technical Writer Mahima is a Technical Writer at SelectHub. She writes for the fields of transportation management, fleet management and compensation management. Show More Most Recent Articles What Are Inbound And Outbound Logistics? A Comprehensive Guide In the age of enhanced visibility, evolving customer expectations and expedited shipping, logistics is the axis on which business success rotates. It’s wise to have it tilted towards the positives by learning all about the various aspects of this network, like inbound logistics, outbound logistics and how transportation management systems can aid their optimization. Read More What Is Logistics Outsourcing? A Comprehensive Guide Businesses often personify the proverbial Jack of all trades when they try to manage all their supply chain management operations in-house. Why not concentrate on core business processes to avoid being the master of none? Outsource your logistics to solve your problem. Read More Top Transport Management System Requirements And Features Checklist In the age of skyrocketing fuel costs and constant demand, feature-rich TMS software helps you excel. With our help, you’ll get to skip tedious documentation and wade right into the TMS requirements your business needs to succeed. Read More Key TMS Modules: A Comprehensive Guide Staying ahead in the transportation management game means beating fuel prices and rising demand. Maintaining a competitive edge requires TMS modules to handle your multimodal shipment needs, address bottlenecks in yard management and resolve damage claims. This article gives you a well-rounded checklist of core modules to consider in your TMS solution. Read More The Best Cloud Transportation Management Software Of 2024 Transportation management is an integral piece of any successful supply chain. The speed and accuracy of customer deliveries are vital to maintaining happy clients and a good reputation in your industry. While it may seem as simple as getting a package from point A to point B, an effective cloud TMS involves much more. This article explores the best cloud transport management systems, delving into their features, benefits, and unique selling points to help you optimize your operations and meet ever-growing customer demand. Read More Logistics Planning: A Comprehensive Guide Your business is doing well, and orders are pouring in. But as demand grows, you notice a troubling trend. Orders are getting delayed, products are getting damaged during delivery and your overhead costs are soaring. How can you bounce back? At this juncture, the often-overlooked power of efficient logistics planning comes into play. This article explores how strategic logistics planning and transportation management systems can address these issues and keep your business on track. Read More Shipping Logistics: A Comprehensive Guide Imagine you’ve ordered a special birthday gift that arrives just in time for the big day. You’ve tracked the package eagerly, only to see it stuck at a faraway distribution center for days, threatening to miss the celebration. Frustrating, right? This experience highlights the every day challenges businesses face in shipping logistics. In this article, we’ll delve into the meaning of shipping logistics, the complexities of inbound and outbound logistics, and returns management. We’ll also uncover strategies for optimizing shipping logistics, including the pivotal role of freight TMS companies. Read More The Best Free Transport Management Systems In 2024 Our research team handpicked the top five free TMS systems. We’ll discuss their features, benefits and more. Here’s a quick overview: Read More Future Transportation: Trends And Innovations In 2024 And Beyond With flying taxis already on the horizon, the future of transportation is here. We’re handing out tickets to this brave new world, so which add-on are you choosing? If you choose sustainability, we have industry reports on green logistics. If you’re after accessibility, we have government investments to show for it. If you’re skeptical, we’ll come clean and show you the challenges that transportation management is facing. Whatever your motivation, read on for a peek into future transportation systems! Read More Last-Mile Carriers: A Comprehensive Guide The way we shop online is nothing short of a fairytale: come rain or shine, products arrive at our doorsteps, no matter where we live. For the companies dispatching the last mile carrier, though, juggling routes, ETAs, bad weather and no-shows can quickly become a nightmare. What is final mile delivery all about? Why is it the most vital part of transport management systems in the age of customer experience? We’ll explore those questions and more. Read More Logistics Management: A Comprehensive Guide Excellent ideas remain hypothetical unless wisely implemented. Conceptualizing within an organizational setup requires planning and implementation to foment concrete results. Managing all operations so that they flow smoothly lies at the core of logistics management. It’s a term often misunderstood in a real-world scenario, and there’s a lot of debate about what logistics management is or isn’t. People sometimes confuse or conflate it with supply chain, transportation or warehouse management. Read More How To Create A Transportation Management System RFP We take a lot of things in life for granted. One the biggest is how much we depend on transportation management systems (TMS). TMS software enables shipping to happen in a streamlined fashion — which is how things like groceries get to your local supermarket on time. Because the TMS is a crucial link in the supply chain, it’s important that you choose the right solution for your organization. One tool at your disposal is the transportation management system RFP. Read More Transportation Trends That Will Drive the Industry In 2024 Forget the flying taxis depicted in the far-away world of Futurama — the future of transportation is closer than you think. In an industry consistently shaped by the customer experience, transportation trends offer a glimpse into the industry’s aspirations and failings, paving the way for exciting new mobility options. So buckle up. It’s time to explore trends that will drive the industry. Read More
What Are Inbound And Outbound Logistics? A Comprehensive Guide In the age of enhanced visibility, evolving customer expectations and expedited shipping, logistics is the axis on which business success rotates. It’s wise to have it tilted towards the positives by learning all about the various aspects of this network, like inbound logistics, outbound logistics and how transportation management systems can aid their optimization. Read More
What Is Logistics Outsourcing? A Comprehensive Guide Businesses often personify the proverbial Jack of all trades when they try to manage all their supply chain management operations in-house. Why not concentrate on core business processes to avoid being the master of none? Outsource your logistics to solve your problem. Read More
Top Transport Management System Requirements And Features Checklist In the age of skyrocketing fuel costs and constant demand, feature-rich TMS software helps you excel. With our help, you’ll get to skip tedious documentation and wade right into the TMS requirements your business needs to succeed. Read More
Key TMS Modules: A Comprehensive Guide Staying ahead in the transportation management game means beating fuel prices and rising demand. Maintaining a competitive edge requires TMS modules to handle your multimodal shipment needs, address bottlenecks in yard management and resolve damage claims. This article gives you a well-rounded checklist of core modules to consider in your TMS solution. Read More
The Best Cloud Transportation Management Software Of 2024 Transportation management is an integral piece of any successful supply chain. The speed and accuracy of customer deliveries are vital to maintaining happy clients and a good reputation in your industry. While it may seem as simple as getting a package from point A to point B, an effective cloud TMS involves much more. This article explores the best cloud transport management systems, delving into their features, benefits, and unique selling points to help you optimize your operations and meet ever-growing customer demand. Read More
Logistics Planning: A Comprehensive Guide Your business is doing well, and orders are pouring in. But as demand grows, you notice a troubling trend. Orders are getting delayed, products are getting damaged during delivery and your overhead costs are soaring. How can you bounce back? At this juncture, the often-overlooked power of efficient logistics planning comes into play. This article explores how strategic logistics planning and transportation management systems can address these issues and keep your business on track. Read More
Shipping Logistics: A Comprehensive Guide Imagine you’ve ordered a special birthday gift that arrives just in time for the big day. You’ve tracked the package eagerly, only to see it stuck at a faraway distribution center for days, threatening to miss the celebration. Frustrating, right? This experience highlights the every day challenges businesses face in shipping logistics. In this article, we’ll delve into the meaning of shipping logistics, the complexities of inbound and outbound logistics, and returns management. We’ll also uncover strategies for optimizing shipping logistics, including the pivotal role of freight TMS companies. Read More
The Best Free Transport Management Systems In 2024 Our research team handpicked the top five free TMS systems. We’ll discuss their features, benefits and more. Here’s a quick overview: Read More
Future Transportation: Trends And Innovations In 2024 And Beyond With flying taxis already on the horizon, the future of transportation is here. We’re handing out tickets to this brave new world, so which add-on are you choosing? If you choose sustainability, we have industry reports on green logistics. If you’re after accessibility, we have government investments to show for it. If you’re skeptical, we’ll come clean and show you the challenges that transportation management is facing. Whatever your motivation, read on for a peek into future transportation systems! Read More
Last-Mile Carriers: A Comprehensive Guide The way we shop online is nothing short of a fairytale: come rain or shine, products arrive at our doorsteps, no matter where we live. For the companies dispatching the last mile carrier, though, juggling routes, ETAs, bad weather and no-shows can quickly become a nightmare. What is final mile delivery all about? Why is it the most vital part of transport management systems in the age of customer experience? We’ll explore those questions and more. Read More
Logistics Management: A Comprehensive Guide Excellent ideas remain hypothetical unless wisely implemented. Conceptualizing within an organizational setup requires planning and implementation to foment concrete results. Managing all operations so that they flow smoothly lies at the core of logistics management. It’s a term often misunderstood in a real-world scenario, and there’s a lot of debate about what logistics management is or isn’t. People sometimes confuse or conflate it with supply chain, transportation or warehouse management. Read More
How To Create A Transportation Management System RFP We take a lot of things in life for granted. One the biggest is how much we depend on transportation management systems (TMS). TMS software enables shipping to happen in a streamlined fashion — which is how things like groceries get to your local supermarket on time. Because the TMS is a crucial link in the supply chain, it’s important that you choose the right solution for your organization. One tool at your disposal is the transportation management system RFP. Read More
Transportation Trends That Will Drive the Industry In 2024 Forget the flying taxis depicted in the far-away world of Futurama — the future of transportation is closer than you think. In an industry consistently shaped by the customer experience, transportation trends offer a glimpse into the industry’s aspirations and failings, paving the way for exciting new mobility options. So buckle up. It’s time to explore trends that will drive the industry. Read More
Transportation Management What Are Inbound And Outbound Logistics? A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments August 27, 2024 In the age of enhanced visibility, evolving customer expectations and expedited shipping, logistics is the axis on which business success rotates. It’s wise to have it tilted towards the positives by learning all about the various aspects of this network, like inbound logistics, outbound logistics and how transportation management systems can aid their optimization. Urnesha BhattacharjeeWhat Are Inbound And Outbound Logistics? A Comprehensive Guide08.27.2024read more
Transportation Management What Is Logistics Outsourcing? A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments August 13, 2024 Businesses often personify the proverbial Jack of all trades when they try to manage all their supply chain management operations in-house. Why not concentrate on core business processes to avoid being the master of none? Outsource your logistics to solve your problem. Urnesha BhattacharjeeWhat Is Logistics Outsourcing? A Comprehensive Guide08.13.2024read more
Transportation Management Top Transport Management System Requirements And Features Checklist By Urnesha Bhattacharjee Transportation Management 23 comments August 8, 2024 In the age of skyrocketing fuel costs and constant demand, feature-rich TMS software helps you excel. With our help, you’ll get to skip tedious documentation and wade right into the TMS requirements your business needs to succeed. Urnesha BhattacharjeeTop Transport Management System Requirements And Features Checklist08.08.2024read more
Transportation Management Key TMS Modules: A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments July 30, 2024 Staying ahead in the transportation management game means beating fuel prices and rising demand. Maintaining a competitive edge requires TMS modules to handle your multimodal shipment needs, address bottlenecks in yard management and resolve damage claims. This article gives you a well-rounded checklist of core modules to consider in your TMS solution. Urnesha BhattacharjeeKey TMS Modules: A Comprehensive Guide07.30.2024read more
Transportation Management The Best Cloud Transportation Management Software Of 2024 By Urnesha Bhattacharjee Transportation Management No comments Last Reviewed: September 20, 2024 Transportation management is an integral piece of any successful supply chain. The speed and accuracy of customer deliveries are vital to maintaining happy clients and a good reputation in your industry. While it may seem as simple as getting a package from point A to point B, an effective cloud TMS involves much more. This article explores the best cloud transport management systems, delving into their features, benefits, and unique selling points to help you optimize your operations and meet ever-growing customer demand. Urnesha BhattacharjeeThe Best Cloud Transportation Management Software Of 202407.24.2024read more
Transportation Management Logistics Planning: A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments July 23, 2024 Your business is doing well, and orders are pouring in. But as demand grows, you notice a troubling trend. Orders are getting delayed, products are getting damaged during delivery and your overhead costs are soaring. How can you bounce back? At this juncture, the often-overlooked power of efficient logistics planning comes into play. This article explores how strategic logistics planning and transportation management systems can address these issues and keep your business on track. Urnesha BhattacharjeeLogistics Planning: A Comprehensive Guide07.23.2024read more
Transportation Management Shipping Logistics: A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments July 11, 2024 Imagine you’ve ordered a special birthday gift that arrives just in time for the big day. You’ve tracked the package eagerly, only to see it stuck at a faraway distribution center for days, threatening to miss the celebration. Frustrating, right? This experience highlights the every day challenges businesses face in shipping logistics. In this article, we’ll delve into the meaning of shipping logistics, the complexities of inbound and outbound logistics, and returns management. We’ll also uncover strategies for optimizing shipping logistics, including the pivotal role of freight TMS companies. Urnesha BhattacharjeeShipping Logistics: A Comprehensive Guide07.11.2024read more
Transportation Management The Best Free Transport Management Systems In 2024 By Urnesha Bhattacharjee Transportation Management No comments Last Reviewed: September 19, 2024 Our research team handpicked the top five free TMS systems. We’ll discuss their features, benefits and more. Here’s a quick overview: Urnesha BhattacharjeeThe Best Free Transport Management Systems In 202407.10.2024read more
Transportation Management Future Transportation: Trends And Innovations In 2024 And Beyond By Urnesha Bhattacharjee Transportation Management No comments Last Reviewed: July 5, 2024 With flying taxis already on the horizon, the future of transportation is here. We’re handing out tickets to this brave new world, so which add-on are you choosing? If you choose sustainability, we have industry reports on green logistics. If you’re after accessibility, we have government investments to show for it. If you’re skeptical, we’ll come clean and show you the challenges that transportation management is facing. Whatever your motivation, read on for a peek into future transportation systems! Urnesha BhattacharjeeFuture Transportation: Trends And Innovations In 2024 And Beyond07.03.2024read more
Transportation Management Last-Mile Carriers: A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments June 28, 2024 The way we shop online is nothing short of a fairytale: come rain or shine, products arrive at our doorsteps, no matter where we live. For the companies dispatching the last mile carrier, though, juggling routes, ETAs, bad weather and no-shows can quickly become a nightmare. What is final mile delivery all about? Why is it the most vital part of transport management systems in the age of customer experience? We’ll explore those questions and more. Urnesha BhattacharjeeLast-Mile Carriers: A Comprehensive Guide06.28.2024read more
Transportation Management Logistics Management: A Comprehensive Guide By Urnesha Bhattacharjee Transportation Management No comments June 14, 2024 Excellent ideas remain hypothetical unless wisely implemented. Conceptualizing within an organizational setup requires planning and implementation to foment concrete results. Managing all operations so that they flow smoothly lies at the core of logistics management. It’s a term often misunderstood in a real-world scenario, and there’s a lot of debate about what logistics management is or isn’t. People sometimes confuse or conflate it with supply chain, transportation or warehouse management. Urnesha BhattacharjeeLogistics Management: A Comprehensive Guide06.14.2024read more
Transportation Management How To Create A Transportation Management System RFP By Zachary Totah Transportation Management 7 comments June 11, 2024 We take a lot of things in life for granted. One the biggest is how much we depend on transportation management systems (TMS). TMS software enables shipping to happen in a streamlined fashion — which is how things like groceries get to your local supermarket on time. Because the TMS is a crucial link in the supply chain, it’s important that you choose the right solution for your organization. One tool at your disposal is the transportation management system RFP. Zachary TotahHow To Create A Transportation Management System RFP06.11.2024read more
Transportation Management Transportation Trends That Will Drive the Industry In 2024 By Urnesha Bhattacharjee Transportation Management 1 comment May 28, 2024 Forget the flying taxis depicted in the far-away world of Futurama — the future of transportation is closer than you think. In an industry consistently shaped by the customer experience, transportation trends offer a glimpse into the industry’s aspirations and failings, paving the way for exciting new mobility options. So buckle up. It’s time to explore trends that will drive the industry. Urnesha BhattacharjeeTransportation Trends That Will Drive the Industry In 202405.28.2024read more