A transportation management system (TMS) is a digital platform that centralizes and streamlines logistics operations by managing shipping, route optimization, freight tracking, fleet administration and documentation.
The logistics industry is becoming increasingly more complex with technological advancements and rising operation costs, making the added efficiency and cost-savings of a TMS more crucial than ever for your transportation business. Continue reading to learn about the key components of a TMS and the benefits of using the right system.
Why Use a TMS?
A TMS offers a host of benefits for your business, particularly by automating and simplifying routine tasks. For instance, a TMS can optimize delivery routes and ensure maximum load utilization, equating to reduced transportation costs and higher fleet efficiency. You can even minimize manual data-entry errors and ensure customer satisfaction at the same time, as a TMS can streamline key functions like freight billing and shipment tracking. Whether you're a shipper or carrier, a TMS will help your business stay competitive in a fast-paced global transportation market.
Essential TMS Features
With over 1,500 TMS vendors globally, there's significant variability between TMS platforms. However, these are some core functionalities many systems share:
- Load Management: Boost efficiency and minimize delays by optimizing load assignments and automating load tendering.
- Driver & Vehicle Management: Monitor your key assets by tracking driver schedules and vehicle maintenance in one convenient location.
- Freight Tracking: Get real-time visibility into shipments to improve customer communication and maintain supply chain transparency.
- Billing & Payments: Simplify key financial processes by automating invoicing, payments and auditing.
- Compliance & Documentation: Ensure your business continually adheres to regulatory requirements while keeping documentation organized and accessible.
- Analytics & Reporting: Track vital metrics to keep a pulse on the health of your business and make more informed decisions.
Comparing a Carrier TMS & Shipper TMS
Some TMS platforms offer functionalities that benefit carriers and shippers, while others provide a more tailored experience. Typically, carriers focus more on managing their fleet and its operational capacity. Therefore, a carrier TMS contains features to help with fleet management, driver communication, revenue tracking and freight bidding.
Shippers are mostly concerned about managing the procurement of transportation services and optimizing the movement of goods, requiring slightly different TMS functionalities than carriers. A shipper TMS offers carrier selection, route optimization, load tendering and shipment tracking.
How Does the Future of TMS Look?
As businesses grow and require more technology to remain up to speed in the evolving transportation industry, TMS software must adapt as well. That's why it's important to consider what a TMS might look like in the coming years. Here are three expectations for the future of TMS platforms:
- More Accessible: As the transportation world becomes more challenging, TMS platforms are becoming simpler. Rather than adding more work to your plate, TMS implementation is becoming quicker and easier.
- AI & Machine Learning: AI is here to stay, including within TMS software. Chatbots and digital assistants will become more common, improving your TMS user experience and bolstering customer service efforts. Plus, machine learning will help automate even more manual tasks.
- Internet of Things (IoT): IoT sensors collect crucial information to help transportation companies keep tabs on their vehicles more effectively. These sensors can alert you to unexpected repairs and when it's time for routine maintenance.
- Increased Customization: TMS platforms must remain flexible to keep pace with the ever-changing demands of transportation businesses. Hence, we expect TMS software to remain customizable with key integrations and add-ons.
ProTransport is a comprehensive trucking software solution with the tools needed to run your transportation business. Schedule a demo or contact us today for more details!