What is a TMS and How Can it Benefit My Trucking Company?
Updated: Mar 16, 2020
What is a TMS?
A Transportation Management System (TMS) is an online platform designed to make the shipping process more efficient, reliable, and streamline moving freight in a cost-effective way. It enable its users to manage and optimize the daily operations of their trucking fleets. A TMS improves the processes for shippers who automate the loads they have through the system, saving time and money on future shipments. The system moves freight using tools for planning routes and route optimization, carrier management, load building, operations, audit and payment, and visibility.
A TMS is beneficial for shippers and truck drivers a like - and anyone that is looking to streamline their freight moving processes. Many users don't take full advantage of the TMS they use, or use one at all, as they don't fully understand the system properly. For you to take full advantage of everything a TMS offers, it is important to know exactly what the system does and how you can benefit from using it for your trucking company.
How can a TMS benefit my trucking company?
Reduce freight spend
One of the top benefits of businesses implementing a TMS is to reduce freight spend through the systems optimization and analytics tools. A system will typically provide insights, suggestions, and uses data to reduce expenses.
Transportation planning and execution
A TMS allows its users to manage all shipments by determining the cheapest, most efficient carrier, and best mode or route with the systems load optimization, route planning, and carrier tools. A TMS also integrates well with other platforms for execution and efficiency, like Warehouse Management Systems (WMS), Customer Relationship Management (CRM), Supplier Relationship Management (SRM), and other management systems for transport demand.
Supply chain visibility and efficiency
A TMS enables a business to increase productivity by being able to track the status of drivers, inventory, shipments, orders, and other processes in real time, in one place. Status updates are provided on each order for an accurate forecast of inventory. This improves the visibility across the entire company improving the supply chain and reducing inefficiencies.
Reduce invoice errors
With a TMS, the freight payment process is automated. Errors that might occur during the manual procedures of paying an invoice are eliminated through the system, making the process more reliable all around.
Improved customer service
A TMS improves customer service for its users as they can monitor all processes and shipments in real time. Customers can log into the systems and see exactly where shipment is and how much further away it might be from its destination. Customer service is improved as everyone is on the same page and can be kept up to date.
For more information about using a TMS and how we can help with your trucking business needs, call us at (205) 397-0934.