What is TMS (Transportation Management System)?

What is TMS (Transportation Management System)?

TMS is a transport route planning and optimization software that allows complete delivery management due to its multiple functionalities.

The system is addressed towards companies that carry out transport and distribution activities, with the purpose of optimizing operational flows in the field of transport.

The TMS solution allows automatic allocation of orders, establishes optimal delivery routes, tracks deliveries, implements advanced calculation of transport costs and much more. In addition, the system is available online and can be accessed from anywhere, the connection being made through an internet browser.

The TMS software solution has two components:

  1. Mobile application – provided with activity reception functions, GPS navigation, report collection and communication with headquarters.
  2. Web application – includes functions for creating activities, planning routes, optimizing itineraries and assigning activities.

What are the benefits of the TMS system?

The main benefits of a TMS system are:

  • Transport routes optimization
  • Resource management optimization
  • Real-time communication with drivers
  • Efficient use of the car park
  • Real-time activity tracking

What are the functionalities of the TMS system?

The Transport Management Solution covers a whole series of activities, from planning routes based on preset parameters, to cost calculation and the monitorization of all activities.

The TMS system functionalities also include:

  • Planning of transport routes (creation / editing)
  • Automatic order processing
  • Creating / allocating activities and collecting / issuing reports
  • Automatic generation of documents based on templates
  • Issue multiple scenarios and suggestions (upload / download, routes etc)
  • Grouping or splitting orders based on needs
  • Cost calculation, CO2 emissions and revenues
  • Role management and user rights
  • Integration with other software systems, such as ERP and WMS

Ce inseamna TMS (Transport Management System)

The advantages of implementing a TMS system

Modern TMS systems have a modular structure and are provided with an intuitive interface and flexible tools, necessary for the optimal use of the main resources needed in freight transport.

The main advantages of implementing TMS systems are:

  • Reduction of fuel consumption
  • Reduces the number of kilometers traveled
  • Significantly decreased delivery costs
  • Decreased delivery times
  • Elimination of human errors
  • Improved communication with drivers
  • Increase in quality of services and employee satisfaction
  • Take control over costs and revenues
  • Reduce the number of vehicles needed
  • Eliminate dead times and empty runs
  • Accurate evaluation of the profitability of each order
  • Increase profit and grow the company

Why implement a TMS solution?

  1. With the help of TMS systems, carriers can deliver more goods, in a much shorter time, at minimum costs, the applications being easy to configure and use.
  2. The solutions can be implemented in full, or gradually, because they have individual modules that can be adapted according to specific carriers requirements.
  3. The transport management systems use GPS monitoring and professional navigation software, offering the possibility of real-time activity monitoring. At the same time, thanks to the integrated chat, communication with them is improved.
  4. The automation implemented by TMS solutions prevent transport operators from using a huge volume of maps and Excel sheets, providing a clear record of all the operations in just a few clicks.
  5. The TMS system allows a single program to carry out multiple activities, such as planning of loading and unloading operations, establishing routes, managing orders and invoices and creating complex reports and analyses.
  6. The allocation of routes can be made according to the characteristics of the vehicles and restrictions. In addition, carriers can include new stopping points on their routes, but also establish alternative routes according to certain criteria (time, distance, cost).
  7. TMS systems offer the possibility to test certain routes and to make changes in real time.
  8. Delivery planning may include data for picking, specifications for loading and for drivers.
  9. A TMS system helps operators with an overview of performance activities.