Lost in a sea of shipping complexities? Imagine yourself not just treading water, but commanding a control tower. That is the power of a Transportation Management System (TMS). Picture a central hub where you can monitor every shipment in real-time, see the big picture across your entire logistics network, and make strategic decisions with complete visibility.

No more scrambling for data or piecing together fragmented information. With a TMS, you have the bird’s-eye view and the power to optimise every shipment, ensuring timely deliveries and maximising efficiency.

Stay tuned till the end for our game changing secret weapon for smoother shipping!

What is a Transportation Management System?

Simply put, a Transportation Management System is a software programme made to manage every aspect of freight movement in order to optimise and streamline your supply chain. It gives you the ability to schedule routes, evaluate prices from several carriers, and automate processes like freight scheduling and paperwork.

It gives you real-time visibility over your whole transportation network with this centralised platform, enabling you to spot inefficiencies, cut expenses, and guarantee on-time delivery.

Remember the days of paper maps and rotary phones? Early TMS in the 1970s were similar – basic systems automating simple tasks like route planning and freight costs.The 1990s saw the rise of Enterprise Resource Planning (ERP) systems, often with basic built-in TMS modules. It was a step towards integrated business systems, but these early modules were like training wheels – limited in functionality.

The real game changer arrived in the 2000s. The internet boom, GPS tracking, and data analytics powered the creation of full-fledged TMS solutions. These modern systems were like high-performance vehicles, managing air, ocean, and land freight, offering real-time tracking, and seamlessly connecting with other business systems.

Today, with advanced technologies like machine learning and AI, TMS is an industry powerhouse.

Core Features of a Transportation Management System

Now, each TMS model has its own hook, but there are three features that are an absolute must for it to work –

Planning and optimisation – A Transportation Management System (TMS) streamlines your transportation network by simplifying route planning and optimising goods allocation. Using smart algorithms, TMS plans the most efficient routes, considering factors like delivery windows and truck capacity. Plus, it matches your shipments with the best carrier and mode of transport.

Execution – TMS automates everything from load assignment to carrier selection, streamlining dispatch and eliminating endless manual communication. Plus, with strong auditing features, TMS acts as your watchdog, helping you identify and fight bogus carrier charges. This means smooth dispatch, fewer headaches, and money saved! TMS keeps you in control and transparent throughout the entire shipping process.

Visibility – Transportation Management Systems provide real-time tracking, giving you a clear view of your shipments – like a live map showing location and arrival estimates. This transparency lets you anticipate delays, inform clients, and ensure on-time deliveries. Plus, it helps identify bottlenecks in your supply chain, leading to smoother future shipments.

By checking these boxes, the system can help reap massive benefits such as –

Slashed costs: TMS automates tasks, compares rates, and optimises routes, squeezing every penny out of your budget. Plus, built-in auditing ensures you’re never overcharged by carriers.

Boosted efficiency: TMS eliminates manual tracking, endless carrier calls, or inefficient routes. By automating these tasks, you can free your team to focus on higher-value activities. It also optimises freight allocation and reduces waste, saving you money and giving you a competitive edge.

Thrive with happy customers: Real-time tracking lets you proactively inform clients of delivery times and minimise disruptions. This translates to fewer order fulfilment issues and a smoother customer experience.

Ditch the guesswork, track your shipments in real-time now!

Picking the right TMS for your Business

The perfect TMS should optimise your operations, work in harmony with your current workflows, and eventually bring substantial value to your company. So here are 5 Must-Ask questions before choosing the perfect TMS software for your company:

Future-Proof Fit: Can this TMS scale with my business?

As your company grows, your shipping needs will too. Ensure the TMS can handle future increases in volume and complexity, saving you the hassle of switching systems later.

Seamless Integration: Will it play nice with my existing systems?

Smooth interaction with your ERP, WMS, and other tools is crucial. Look for a TMS that minimises errors and saves time by ensuring efficient data flow and eliminating manual data entry.

Cost-Effective Choice: Does it fit my budget and deliver value?

TMS pricing structures can vary. Consider upfront implementation costs, ongoing subscription fees, and potential changes in shipping costs. Choose a system that offers a significant return on investment (ROI) within your budget.

Functionality Focus: Does it have the features I need?

Not all TMS solutions are created equal. Identify features critical to your business, like real-time tracking, freight auditing, multi-modal transportation management, or robust reporting and analytics tools.

User-Friendly Champion: Will my team embrace it?

A user-friendly interface with comprehensive training resources is key for seamless adoption. Minimise disruption to your daily operations by choosing a TMS your team can easily navigate and learn.

Top TMS Providers

After discussing the essential selection factors, let’s look at some of the major players in the TMS provider market. These sector leaders provide solid options with distinctive advantages to take into account:

GoComet: A rising star in the TMS arena, GoComet provides a feature-rich, cloud-based solution appropriate for businesses of all kinds. By providing tools for real-time container tracking, freight procurement (including features like automated quotations and bidding), and invoice automation, their platform goes beyond standard TMS functionalities. This one-stop shop strategy simplifies the whole logistics process, enabling businesses to handle the financial and procurement components of their supply chain in addition to transportation. GoComet is an appealing alternative for firms looking to optimise their whole logistics operation because of its focus on automation and real-time data.

Manhattan Associates: Manhattan Associates’ TMS, Manhattan Transportation Management, is renowned for its best-in-class scalability and extensive functionality. It is designed to meet the demands of major organisations with intricate supply chains. The system offers a wide range of features, such as real-time tracking, multi-modal transportation management, extensive analytics, and strong integration possibilities with current business systems. It also boasts a powerful, scalable design that can expand with your business.

Blue Yonder: With a strong cloud-based solution, Blue Yonder Transportation Management System (TMS) is the best choice for companies looking for sophisticated analytics and complete supply chain visibility. Blue Yonder’s machine learning algorithms offer strong insights for optimising routes, carrier selection, and overall supply chain efficiency, and its cloud-native architecture guarantees scalability and simplicity of application.

Oracle Transportation Management Cloud: Offering smooth integration for companies already invested in the Oracle ecosystem, Oracle Transportation Management Cloud is a part of Oracle’s extensive array of business applications. Strong capabilities for shipment management, freight optimisation, and settlement auditing are available with this cloud-based solution, and they’re all made to integrate easily with other Oracle programmes like WMS and ERP.

Alpega TMS: A strong contender for mid-sized businesses, Alpega TMS offers a user-friendly interface, robust features, and a focus on real-time visibility throughout the transportation cycle. Their solution is known for its ease of use and intuitive design, making it a great option for businesses looking for a user-friendly TMS with strong functionality. Features include real-time shipment tracking, multi-carrier management, automated workflows, and built-in analytics for data-driven decision making.

CloudTMS: Preferred for its low cost and user-friendliness, CloudTMS is a strong choice for startups or companies looking to deploy a TMS quickly and effectively. With its reduced feature set and user-friendly interface, this cloud-based solution concentrates on essential capabilities like carrier administration, shipment management, and basic reporting. For companies that don’t need the sophisticated capabilities of certain enterprise-level TMS solutions, it’s an affordable choice.

Learn about the top 13 TMS software solutions in 2024

Getting Started with Your New TMS

So you’ve chosen the perfect TMS! Now comes the key step: integrating it smoothly into your business. Here’s a simplified guide:

Planning & Prep:

Build a team (finance, IT, logistics)
Set clear goals (cost savings, efficiency)
Prepare existing data for transfer

Implementation Steps:

Integration & Configuration: Work with the TMS vendor to connect it to your existing systems and customize it for your needs. Test everything thoroughly.
Change Management & Training: Inform your team, train them on the TMS, and offer ongoing support after launch.
Optimisation & Improvement: Stay updated on software, use TMS data to find areas for improvement, and constantly refine workflows for best results.

Common Challenges & Solutions:

Data Migration Issues: Check data quality before transfer and have a data cleansing plan.
Integration Difficulties: Work closely with IT and the TMS vendor to ensure smooth data flow.
User Resistance: Communicate clearly, train on the TMS benefits, and provide user guides.
Training Gaps: Offer thorough, role-specific training and ongoing support resources.
Scope Creep: Prioritise core features first, phase in additional functionalities later.

By following these steps and overcoming potential challenges, you’ll be well on your way to a successful TMS implementation and optimised logistics operations!

What’s in Store for the Future?

The future of TMS is brimming with exciting possibilities! By embracing these trends, your business can gain a competitive edge and ensure your supply chains remain efficient and streamlined in the ever-evolving world of logistics. Here’s a glimpse of what’s on the horizon:

AI & Machine Learning: Imagine a TMS that predicts delays, optimizes routes in real-time, and even negotiates with carriers – all automatically! AI and machine learning are transforming TMS, promising significant efficiency gains and cost reductions.

The Internet of Things (IoT) Revolution: Sensors embedded in your shipments will provide real-time location updates, track environmental conditions, and even monitor security risks. This granular data will allow businesses to optimize transport plans, minimize delays, and ensure cargo integrity.

Blockchain for Enhanced Transparency: Blockchain technology, known for secure data sharing, is entering the TMS scene. Imagine every transaction in your supply chain securely recorded – from origin to destination. This increased transparency builds trust, streamlines customs clearance, and improves collaboration across your logistics network.

The Rise of Cognitive Automation: TMS will move beyond basic automation. Imagine a system that learns from past data and adapts to current situations. This “cognitive automation” has the potential to revolutionise supply chain decision-making, allowing companies to anticipate problems and optimise operations in real-time.

In today’s complex logistics landscape, Transportation Management Systems (TMS) are a game-changer for businesses of all sizes.

As a reward for making it to the end of this blog, we will let you in on a little secret that will unlock your supply chain’s full potential – click here to know more!

A Comprehensive Guide to Transportation Management Systems (TMS)