What Is a (TMS) Transportation Management System?

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.

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How Transport Management System Helps Your Logistics Business Grow?

Transportation Management System (TMS) has become the foundation of modern supply chain and logistics businesses.

TMS is a specially-designed software that helps you plan, execute and optimize the shipment of freight. TMS performs three main actions-

  • Identify shippers and compare rates
  • Book shipments at the lowest costs
  • Track the shipment
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What is a Transportation Management System (TMS)?

Transportation Management System (TMS) definition.

A transportation management system, or “TMS,” is a platform that’s designed to streamline the shipping process. It is a subset of supply chain management concerning transportation solutions. A TMS allows shippers to automate the processes they have in place and receive valuable insights to save time and reduce spend on future shipments. 

Distribution companies, e-commerce organizations and anyone else that moves freight on a regular basis realizes there are many moving parts to the shipping process, both literally and figuratively. From quoting to delivery, those shipping freight are almost always looking for ways to optimize spend and improve processes. Thanks to transportation management systems (TMS), shippers have a solution on their side to do just that.

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In both 2020 and 2021, Statista conducted online surveys asking approximately 1,000 people across the United State the following question: Which of the following activities were part of your shopping behavior over the past six months? The answer: “same-day shipping” topped the list. Check the percentage below:

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10 Tips for Managing Inbound Transportation

Whether it's raw materials or popular holiday products, your primary objective is to get goods to your customers exactly when and where they need them. Here's how to manage your inbound transportation process.

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Less than Truckload (LTL) vs. Full Truckload (FTL) freight: What's the difference?

Deciding between the less than truckload (LTL) shipping and full truckload (FTL) methods is often a hard choice when you aren’t sure of your options. A lot of factors weigh into freight shipping. Assessment of each element can steer you toward the most efficient method based on your particular needs. Factors like freight dimensions (made up of length, width and height), freight classification and special services are all things to consider when choosing a shipping method.

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10 Reasons to Consider a Transport Management System (TMS)

If your company functions in retail, distribution, manufacturing, e-commerce or third party logistics, chances are you already know. A Transport Management System/Software (TMS) is a logistics platform that allows users to manage and optimize the daily operations of their transportation fleets. It comes under the subset of Supply Chain Management (SCM). Its primary function is to plan and execute the physical movement of goods.

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What is Happening in Transport Management Today?

How to effectively manage transport logistics has become a key topic of conversation among both shippers and carriers. Freight costs are rising, capacity is tight and changing customer buying behaviours are having a direct impact on operations. The landscape looks very different from a few years ago, there is an escalating trend towards more frequent deliveries and smaller, more fuel-efficient, vehicles.

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Why You Should Get a (TMS) Transport Management System

For any company that is in logistics, a TMS is a system that can improve operations, drive business and provide better service to customers. There are numerous benefits of a TMS that assists companies to move freight from origin to the destination accurately and cost-effectively. Before selecting a TMS, understand the value of this system and how it can be beneficial for your company. Some benefits of a TMS include:

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Trucking industry needs to attract 1 million new drivers by 2030, ATA chief economist says

The decades-old truck driver shortage, now estimated at 80,000, is bad and getting worse because of the nationwide service worker shortage, early retirements, the global pandemic and other acute economic factors. That is up from 61,000 just three years ago, in 2018.

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Understanding Freight Shipping Terms and Definitions.

Like many industries, logistics has a number of terms with specialized meanings. To help our customers and website visitors, we’ve compiled this handy list.If we missed an important phrase or term, be sure and let us know. Use the simple form in the right hand column to suggest an addition. We appreciate that and we know our readers will too.

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Advice for Owner Drivers

New owner drivers, experienced owner drivers and even people looking at becoming owner drivers – we are always getting phone calls asking our advice on various topics from vehicles, insurance and fuel cards, to sat navs and work-wear. So we wanted to include a section that highlights some of the options available to owner driver sub-contractors. We have to stress though that these are just our opinions from our experience. We have also included some useful links to the companies that we feel may be able to help advise you further or who you may wish to purchase products and services from to help you on your way.

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