Transportation management system software is a common term in the logistics industry that has many meanings which can usually be distilled down to a few decisive definitions;
- Transportation management system (TMS) software usually plans and executes multiple modes of transportation like truckload and less than truckload, parcel, ocean, air, and rail.
- A transportation management system is commonly thought of as having deep planning and optimization algorithms that give those systems their rich appeal to large shippers. However, most companies fail to utilize this capability because of the need to translate their unique business processes into system’s planning functionality.
- Transportation management software systems usually integrate with the shipper’s supply chain so that data will travel between the departmental partitions without manual processes or delays that could not happen without this integration.
- A more sophisticated transportation management system shipping software tool can have planning logic to select the proper mode as well as the optimal carrier and rating for the shipment in a manner that will exceed the efficiency of spread sheet management.
- Cloud-based transportation management systems can manage the aforementioned functionality across multiple locations (even across international boundaries) with the applicable rules that must be followed.
- Global transportation management systems are few and far between because of the enormous functional requirements. Replicating all of the mode and carrier processes becomes a daunting task that takes years to configure and implement properly. Ocean shipments alone require multiple legs that are moved by many different entities who may or may not have digital connections to the transportation management software control tower concept.