Transport Management Software

Transportation management plays a crucial role in determining the success rate of a company's distribution system. Transportation incurs a huge cost to the company, thereby making it very strenuous for a company to accomplish higher ROI (returns on investment). The adoption of automated solutions in such scenarios facilitates the optimization of functional tasks, thereby broadening their line of operations and adding value to their supply chain. This where a TMS (Transport Management System) comes in picture. In this article, we are going to talk in detail about the features and benefits of a TMS.
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What is Transport Management Software?

Transportation management software is designed for planning, implementing, and optimizing the shipment of goods. Mainly three tasks are performed on this system: finding and comparing the prices plus services of available carriers, shipment booking, and lastly, tracking its movement to delivery. Conclusively, it aids in streamlining the shipping process and ease the transportation operations.
A transport management software provides visibility into daily transportation activities such as trade compliance information, documentation, and ensuring the proper delivery of goods and freight. The core target of using a TMS is to improvise shipping efficiency, cost reduction, gain current supply-chain visibility, optimisation of transportation process & better customer satisfaction.

Features of Transport Management Software

Route Optimization

Transport management software aids in providing the most optimal route for carriers. It is capable of planning & executing routing for numerous numbers of shipments either by multimodal transportation, consolidating, or pooling. Consolidating shipments not only acts as a cost saviour but avoid unproductive trips.

Mode and Carrier Selection

This section helps in the selection of suitable carriers and modes of transport depending on the service requirements in terms of efficiency, cost, and distance. The software is designed to automatically choose the best carrier using a centralized data pool based on price, previous requirements, and company requirements.

Integrated EDI

EDI enabled the standardized format of data exchange to build a benchmark for superiority. Companies gain higher visibility in their experience and functions plus a drastic reduction in the paperwork. The integration of TMS with EDI gives high-end data accuracy and fastens the exchange of critical information.

Integrated Warehouse Management System

An integrated warehouse management system, existing within the execution module of transportation management system gives real-time information about a warehouse, such as material tracking, in and out inventories movement, shipments dispatching etc. This real-time information access improvises the overall decision-making process.

Integrated Audit and Payment module

Payment and auditing system allows Transportation management software to evaluate the service options, calculate freight charges, and identify improvement areas. This enables immediate acknowledgement and resolution of overcharge relevant issues with customers and carriers alike. Also, the links to ERP or any other financial system permits effective handling of payment procedures.

Multimodal Transportation Facility

TMS transport management system is equipped with functionality like support for air, rail, ocean-based multimodal transportation, enhanced geo-coding, and global map. This guide allows the freight to be transported other than road supporting the globalized business. These attributes also enhance the transportation process efficiency with increased visibility and facilitate accuracy in transit time calculation.

Track and Trace

This attribute permits a real-time exchange of shipment data between the carrier, distributor, and end-user. General and competent sharing of shipping information across the business enhances visibility, tracking accuracy rate, and efficient management of business and enhances reporting.

Analytics and Business Intelligence

The proficient use of dashboard functionality, data warehousing, and report generation in custom or standardized formats is the core idea behind integrating this module. It aims at gathering, analyzing, and summarizing the supply chain data by utilizing resources for effective decision-making procedures.


The visibility trait (of performance management) of TMS gives a detailed view of all the steps of a transportation process resulting in their easier management. Accurate and timely visibility of the entire supply chain's critical information ensures a healthy balance between supply & demand.

Benefits of Transport Management Software

Real-time Delivery Tracking

A transport management system gives the ability to view where shipments and drivers are located in real-time. This, in return, helps in estimating the total time a route takes, which directly helps in creating an efficient route schedule. Additionally, this module also provides real-time information as to which routes and drivers are most suitable. Consequently, this attribute aids the administrator in an appropriate decision-making process.

Better Customer Service

A transport management system improvises the level of customer satisfaction with the ability to check on-time performance. The customers are provided with valuable information which ensures that the user faces no issue while receiving the product. It has an online portal where customers can view the location of their shipment. This, in return, helps in making customers happy since customers are equipped with the ability to access freight and shipment information whenever needed.

Reduced Freight Expenses

One of the major benefits of a transport management system(TMS) is reduced freight spending. This software solution provides savings with the help of optimization and analytical tool integrated into the system. The transportation management software gives suggestions on how to minimize expenses by retrieving the insightful data which is capable of providing valuable information.

Supply Chain Efficiency

The ability to track inventory, drivers and other processes of your organisation is capable of increasing the productivity of the transport section of your business. Eventually, this procedure refines the supply chain management and contract inefficiencies of your organisation. A TMS, transportation management system betters the efficiency level in the supply chain and enables users to save more.

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