Transport Management System (TMS) is a logistics platform that uses technology to help companies plan, execute and optimize the physical movement of goods.
It is for both inbound and outbound, ensuring that shipments are compatible and have appropriate documentation. This type of system is often part of a larger Supply Chain Management (SCM) system.
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TMS provides visibility into day-to-day transportation operations, trade compliance information and documentation, and ensures timely delivery of goods and assets. This system also streamlines the shipping process, making it easier for companies to manage and optimize their transportation.
It plays a central role in the supply chain, influencing every part of the process, from planning and delivery to logistics and lifecycle management. The broad and immersive visibility provided by a robust system leads to more efficient transportation planning and execution, resulting in greater customer satisfaction.
The availability of cloud-based TMS solutions has made it more affordable for small businesses to reap the benefits of integrating transportation management systems into their supply chains.
Customer expectations continue to grow, not only in terms of on-time delivery, but also in terms of delivery within two or even a day, with real-time updates provided during the delivery process. Changing global trade regulations are also forcing supply chains to innovate with them, often by investing in transportation management systems.
Transportation management systems need to become more robust and feature-rich to enable faster customer response and more detailed business information. Machine learning makes TMS smarter, providing better recommendations and more accurate forecasts.
Businesses can choose to integrate their transportation management and global trading systems with new technologies to further increase visibility and provide better customer service.