Transport Management Systems

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Last Updated: 04. October 2019

Transport Management Systems 

Transport Management solutions, usually abbreviated to TMS is a part of supply chain management. It is a software that facilitates moving of freight from point A to point B - from origin to destination. This system connects order management, warehouse management system and distribution centers.

The freight transported can be inbound or outbound, domestic or international, and usually in connection with fleet and its management. The size of freight can differ and is not limited to big elements.

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Feautures of Transport Management System

What is a goods transport management system responsible for? What transport management system features do these systems have? There are many functionalities that transport management softwares have. These are among the most common:

  • Transport planning
  • Execution
  • Tracking Shipment
  • Measurement
  • Carrier Contract Management
  • Risk Management
  • International Logistic Management
  • Parcel Shipping
  • Benchmarking
  • KPI Reporting
  • Real Time Tracking
  • and more.

Transport management solutions help companies with transport planning and creating the most effective schemes based on different specifications - desired number of stops, freight and transport cost, desired lead-time and many more. 

Transport management companies facilitate the execution of transportation, including carrier rate acceptance, EDI, dispatching and more.

It is possible to track shipment event by event and thanks to transport management companies it is also possible to track physical and administration operations concerning the transport. 

TMS enables the measurement of performance - the key performance indicators (KPIs) and thanks to this reporting function, it is possible to analyse and improve the performance. This function can also lead to more efficient business processes. 

Another function, that can be very useful is the carrier contract management. This function will facilitate the management of multiple carrier contracts, send notifications whenever a contract is about to end, help with comparing carrier costs and choosing the cheaper options and most important, help with tracking the contracts in real-time. 

TMS can also facilitate the transportation of hazardous goods. There are many points that need to be taken care of when transporting hazardous freight, such as paperwork, packaging, labelling, and more. This system can also inform on steps that need to be done with international shipping as well as information on customs or any regulations. 

Besides transport information on international shipping when it comes to hazardous goods, transportation management software can facilitate international logistics. TMS offers multi-language interfaces, manages foreign currencies and different types of invoices, calculates extra costs such as VAT and cross-border fees and facilitates the decision on the most cost-effective carrier.

Transport management system features

Some companies may face nowadays the demand for smaller shipments. This can be facilitated thanks to parcel shipping function and create conditions for more competitive company. 

Benchmarking functionality will provide the company with benchmark data to help negotiate better contract and deals, but also to keep an overview of the business area. 

It is possible to set key performance indicators, KPIs, which will be reported on and measured. Transportation management system can also provide companies with statistics, which can create more efficient business processes. 

With TMS it is possible to track transportation in real-time, as many fleet solutions offer active tracking. Real-time tracking solution can bring more benefits to the company. Active car tracker costs start from £169 yearly when renting, and £199 when making a purchase.

The most common functions that TMS has are planning, execution of transportation, tracking of shipment, measurement of performance and KPIs, carrier contract management, risk management connected to transportation of hazardous goods, international logistics, parcel shipping, benchmarking, setting and measurement of KPIs and reporting on KPIs and tracking in real-time. There are however more functions that can a TMS offer and therefore a research on companies offering transport management solutions is a good idea.

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Transportation Management System Benefits

Why should a company invest in transport management system? If you are considering acquiring a TMS, here are some of the benefits that a transport management system can bring:

  • Reduced costs. Thanks to many functions mentioned above, such as planning, transportation execution, international logistics, parcel shipping, risk management, tracking of transportation, reports and analysis can all lead to cost cutting.
  • Improved customer service and accountability. Choosing the right carrier as well as improved management of international logistics and reports can bring better customer service and help the company to be more accountable.
  • Warehouse optimization. If a goods transport management system is connected to a warehouse management system, the visibility gained helps you achieve more efficient warehouse.
  • Improved financial management. Improved route planning, load optimization, better chosen carriers can create a better financial management including reduced costs mentioned above.
  • Flexibility. A transport management systems gives you the flexibility change plans in delivery more easily.
  • Easy installation and use of web based Transportation Management System. Most transport systems have easy installation and should be user-friendly.


To sum up, the advantages of transportation management systems are costs, better customer service and accountability, warehouse optimization, better financial management, more flexibility and easy installation and utilization.

Interested in Transport Management Systems in the UK?

If your company is thinking about investing in transport management systems in the UK, the needs of your company have to be considered first. Fill out our quote request form to help you choose the best fit for your company. Our sales team with contact you with free quotes. 

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