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Introduction to Transportation Management System

Published on: August 04, 2023 | By : Mohammad Suhel
Best Software Development Company

A type of software called a transportation management system, or TMS aids in organising and carrying out the actual movement of products. It can be used by almost any organisation that wishes to manage shipments, including manufacturers, distributors, and third-party logistics providers (3PLs). Often, such a system is part of a larger supply chain management (SCM) system.

A TMS, sometimes referred to as a transportation management system or transportation management software, offers insight into ongoing transportation operations, paperwork and information related to trade compliance, and guarantees the prompt delivery of goods and other items. In addition to streamlining the shipping process, transportation management systems help firms manage and optimise all aspects of their transportation operations, whether they involve land, air, or marine transportation.

What does transportation management software do?

The majority of transportation management software options provide a wide range of features that let you manage all of your logistics and transportation operations in one location. The features listed below are typically included in transportation management software:

  1. Load planning

With the maximum weight that each vehicle is capable of carrying in mind, you can organise the loading space of your containers, vehicles, and trucks to maximise the available space. To properly plan loads, you must enter the measurement and capacity details for each vehicle and then combine these with your item measurements. Then it assists you in efficiently allocating orders among the available delivery vehicles.

  1. Route planning and optimisation

Some TMS platforms also offer robust route planning features, which involve determining the most practical method of delivering all of your orders. This aids in eliminating any inefficiencies in your routes so that you can increase delivery volume without sacrificing delivery time. Additionally, doing this allows you to cut expenditures on manpower and petrol, which boosts your bottom line.

  1. Load execution

You can automate the goods tendering process using transportation management solutions. You don't have to go through this process manually because they can digitally tender loads depending on the routing guide to the appropriate carriers. You can speed up procedures like freight booking and tendering greatly by automatically dispatching carriers.

  1. Fleet/carrier management

Some TMS platforms also offer the capacity to manage a fleet for companies that own and run their vehicles. The TMS will be able to allow you to assign drivers, schedule vehicles, and manage dispatch, though it's typically not as feature-rich as dedicated fleet management software. The TMS platform enables you to quickly find rates, assess carriers' capacities, and choose the best carriers for each cargo if you use third-party carriers.

  1. Documentation management

The transportation procedure frequently calls for several different forms, documentation, and compliance data. You can increase efficiency by automating some aspects of document management with a transportation management system. It can be used to quickly produce bills of landing, carry out freight audits and produce invoices. Using a TMS also makes it simple to share pertinent import and export documentation to make sure your shipments comply with trade regulations. 

  1. Tracking and visibility

The capacity to acquire detailed tracking information on the flow of commodities across the supply chain is one of the most important characteristics of a TMS. You may get real-time updates on your goods while also learning more about your carrier's performance.

  1. Payment management

You can handle your payments across several carriers and suppliers effectively using a TMS. Reviewing each carrier invoice will allow you to set up automatic payments for when they become due.

  1. Reporting

The ability to get useful reporting is one of TMS's strongest features. On the effectiveness of your networks and facilities, you can obtain comprehensive reports. You can use this to guide your optimisation tactics and lower expenses while increasing efficiency.

The future of TMS

Customers now expect not only deliveries on time but also two-day and even same-day deliveries, as well as real-time updates provided at every stage of the shipping process. Global trade restrictions that are always changing are also requiring supply chains to adapt to keep up, frequently by investing in a transportation management system.

In order to provide clients with quicker responses and more accurate information, transportation management systems must become more robust and feature-rich. Machine learning causes TMSs to become increasingly complex, resulting in better suggestions and more accurate projections.

To further increase visibility and provide better customer service, businesses might choose to integrate developing technology into their global trade management and transportation systems. Some technologies are:

IoT fleet monitoring

Real-time fleet monitoring is made possible by Internet of Things (IoT) devices and sensors, including the in-transit view of driving conditions, routes, and assets. Companies can decrease fuel and maintenance expenses, as well as reduce delays and increase driver safety.

Digital assistants

Chatbots, also referred to as digital assistants, offer rapid, conversational answers to concerns about shipments, which raises customer satisfaction.

Adaptive intelligence and machine learning

By using machine learning on historical data and patterns, transportation management systems can more accurately predict transit times, plan capacity, identify at-risk shipments, and do a lot more. Your TMS will be able to offer better recommendations due to improved artificial intelligence, such as different delivery routes during peak times.


Blockchain technology is currently being used to create complex interfaces between shippers, customers, and carriers. Applications like smart track and trace enhance data accuracy and security while also boosting supply chain transparency and traceability.


Both technology and the transportation sector are developing. You can start using the appropriate solutions to automate your business operations, give better customer service, and gain a competitive advantage now that you are aware of the opportunities that software offers. At IBR Infotech we build software that empowers your business. Get in touch with us right now if you're ready to take a drive on transportation management software. 

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