A Transportation Management System, or TMS, is a solution that manages the dispatching of trucks or carriers. As well as fleet maintenance, billing, driver pay, driver records, IFTA reports and DOT compliance.
Additionally, a Transportation Management System streamlines operations by optimizing carrier routes, and reporting key analytics while improving customer service across business areas.
Benefits Of Transportation Management System (TMS)
The key benefits of a TMS are:
- elimination of redundant data entry
- better truck utilization
- improved visibility and communication between dispatchers and drivers
- enhanced customer service
- simplified driver management
- DOT regulatory compliance
- simplified IFTA fuel tax reporting
Who Can Benefit From Transportation Management Software?
Truckload Carriers, Freight Brokers, 3PL Companies handling Third Party Logistics, and Less than Truckload – LTL Carriers. These types of operations can all benefit from Transportation Management Software.
3PLs have recognized opportunities where they can create positive change within their business by introducing a TMS that provide a large range of functions. With greater visibility, shippers are given more detailed information for their viewing when they are organizing a shipment through their chosen 3PL. 3PLs also will see increased efficiency, streamlined business decisions, and satisfied customers.
Successful Transportation Management System (TMS)
Each system has its own features that differentiate it from others. Knowing what features work best for you will vary as well. Here is a list of just some of the features a TMS can offer your business:
Carrier Contact Management
- Allows the ability to view and compare contracts and costs with ease through the use of digitalized contacts
- Real-time tracking of terms and agreements
Reporting and Analytics
- Optimized historical shipment data for greater referencing
- Displays distribution patterns
- Review of industry trends
- Insights into demand/order forecasts
Risk Management
- Automates the auditing process
- Generates reports as seen above to minimize potential risks
- Allows the ability to build contingency plans ahead of time
- Can be set with automatic alerts
Visibility
- Ability to track and trace shipments from pickup to delivery
- Status update notifications
- Auto pick up
- Integration with a carrier using EDI
- Display of costs and additional charges allowing an easy opportunity to compare
- Estimations on cost of delivery
Business Monitoring
- Review performance metrics
- Review key performance indicators (KPIs)
- On-time performance
- Lane analysis
- Volume trends
- Cost per mile
- Cost per ton
- Financial reporting
