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Transport Management Software (TMS) plays a major role in supply chain and influences every process of it. TMS offers users information on operations in real-time as well as collect data that can be used to improve safety, performance and productivity. Let’s take a look at its many capabilities and the analytics provided that enhance the supply chain.


Transport Management Software


Transport Management Software is a supply chain management system that assists with the planning, execution and tracking of shipments. It aims to simplify the shipping process by assisting users in managing and improving their transportation operations. TMS users can easily find and compare the prices offered by service providers, book a shipment and track the shipment until it reaches delivery. TMS is for businesses that deal with shipping as well as move and receive goods from manufacturers, retail businesses or distributors.


TMS Capabilities


TMS assists businesses with the planning, execution and optimization in the movement of goods. These are a few of its capabilities:


Accurate Billing

This software is able to support billing, allowing you to maintain your relationships with your carriers. It can calculate the transportation costs for you and your supplier while also handling claims management, invoice management and calculating your carrier rates.


Carrier Selection

Choosing the right carrier can be time-consuming and daunting as there are many carriers to choose from. TMS assists with this through auto carrier selection which occurs in one place. It does so by going through the equipment your business needs, preferences, costs, etc. All this is done through an algorithm.


Track and Trace

The carrier, distributor and the customer can share real-time information regarding the shipment through web-based access. This information offers accurate tracking and tracing as well as visibility throughout the shipping process.


Order Management

This process begins when customers place their order and it ends when they receive their orders. A member of the sales team checks the order to ensure that the details are correct. The order is then sent to the warehouse where shipping details and order fulfillment occurs. It is picked, packed and shipped. Inventory levels are checked by the business to ensure that they meet their demands.


Analytics and Reporting

Real-time data offered ensures that meaningful insights which can be used to improve the performance of the business are delivered. These reports can be used to implement better rates and reduce freight costs.


Business Intelligence

TMS is able to offer KPIs and show the business areas where their costs are too high and areas to improve. This information allows improvement and better planning of future shipments.



Insights TMS Analytics Provide


Transport Management Software brings about many improvements and insights regarding shipment location, but how does it bring about growth for your business?


Less Touch-Points per Shipment

Analytics reduce the number of touch-points per shipment due to more simplified processes like picking and packaging, and warehouse management. The reduction in touch-points ensures that shipments go through the best route and that they don’t end up in the wrong truck, which reduces delays for the deliveries. Shipments are also less likely to be damaged because of fewer touch-points.


Decrease in Human Error due to Analytics

Analytics tend to include automation which means that there is less likely to be inaccurate data entries leading to businesses losing their customers. People make errors all the time that end up impacting the business negatively. With analytics, this can be avoided and it is able to automatically make decisions, eliminating those errors. This in return also increases employee productivity as they won’t have to waste time fixing and double checking errors.


Better Shipment Visibility due to Real-Time Data

Analytics are able to offer greater visibility into shipments; offering great benefits in the supply chain. Spreadsheet- based analysis may not be able to offer detailed analysis on the issues that might occur during shipments. Analytics, however, can and they handle everything. They simply present to you the information you need to enhance visibility.


Data Insights Prevent Data Confusion

Using automation and analytics means that businesses have to give up control of their operations and choosing freight. The data that is usually presented can be very difficult to understand in its raw form meaning that information regarding performance and costs isn’t properly utilized.

TMS analytics offer information that allows businesses to better manage their shipment operations and fulfill their orders. The data you receive is organized and well-defined which makes your decision making processes easier.


Early Information Processed Predict Fleet Wear and Tear

Analytics include sensors through Internet of Things, which offer information regarding your equipment and its functions which could provide improvement and when they should be serviced. This information includes the equipment’s air pressure and efficiently, it can be utilized for equipment used within the business and for maintaining vehicles.




TMS analytics can offer solutions to improve supply chain processes. These solutions are not limited to the business, but customers and workers are included. It should be an investment that every logistics company makes.




Let’s take a look at the 5 Ways to Cut Costs With Transport Management Systems.

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