A Transportation Management System (TMS) is a supply chain software platform that helps companies plan, execute, and optimize the movement of goods—both inbound (from suppliers) and outbound (to customers). Key functions of a transportation management system include the following:
The value delivered from transportation solutions is heavily dependent on the environment in which it is being applied, as is the complexity required in a TMS. SCT typically segments transportation management solution areas by some core requirements:
- Transportation Execution – Provides real-time visibility of where shipments are, tracks carrier performance (on-time delivery, service levels), and sends alerts and initiates contingency planning if shipments are delayed. Automates freight bill audit and payment, ensures correct rates, accessorials, and surcharges.
- Planning & Optimization – Selects the best carrier, route, and mode (truckload, LTL, parcel, intermodal, ocean, air), consolidates shipments to reduce costs by applying business rules to required shipment schedules and/or inventory replenishment needs.
- International – global trade helps businesses navigate the complexities of international commerce by automating and managing import/export processes, ensuring compliance with trade regulations, optimizing supply chain operations, and reducing associated risks and costs. These systems handle tasks such as tariff classification, customs documentation, and compliance checks, providing financial and operational visibility for international trade.
- Asset Management – Carriers or shippers with dedicated trucks or trailers. It extends the planning and execution functions to include real time GPS tracking, driver scheduling and management, mobile driver applications, and asset management.
- Logistics Service Provider Solutions – Billing & Visibility Portals – Logistics services providers must invest in robust tools to calculate contract and spot rates and track profitability. Increasingly, they are looking to differentiate through investment in portals for their customers to see real time dashboards and reporting through a dedicated portal.
The value delivered from transportation solutions is heavily dependent on the environment in which it is being applied, as is the complexity required in a TMS. SCT typically segments transportation environments by some core requirements:
- Shipper Solutions – Shippers need a TMS to centralize operations, gain real-time visibility into shipments, reduce costs through optimized routing and carrier selection, and improve efficiency by automating tasks like rate comparison and freight tendering.
- LSP Solutions – LSPs need a Transportation Management System (TMS) to manage complex, multi-client logistics operations efficiently and cost-effectively by providing a unified platform for shipment planning, carrier management, real-time tracking, automated billing, and comprehensive reporting. They can be extended to differentiate client relationships with real time customer portals.
SCT works with shippers to identify the key requirements specific to their business, and scope, select, budget for, and implement the TMS to drive value across their business. Tangible results include:
- Improved freight spend and performance through carrier management and selection, optimized load planning and route efficiency
- Improved operational efficiency through automation of manual tasks
- Enhanced real-time visibility and tracking of shipments
- Clarity in international shipping status and global trade processes (though this may require multiple solutions)
- Streamlined and higher accuracy freight auditing and payment processes
LSPs need a Transportation Management System (TMS) to manage complex, multi-client logistics operations efficiently and cost-effectively by providing a unified platform for shipment planning, carrier management, real-time tracking, automated billing, and comprehensive reporting. They can be extended to differentiate client relationships with real time customer portals. Benefits include:
- Cost reduction through optimized routing and automation
- Increased efficiency via real-time visibility and automated tasks,
- Improved customer satisfaction with better service and reporting
- Enhanced scalability to manage growth and diverse client needs
