Logistic TMS

Logistic TMS

Abbreviation for Transport Management System

What is a TMS?

A TMS or Transport Management System is an IT tool (software) providing management solutions throughout each and every transport phase. The interfaces are designed to obtain an ideal process. This ideal process generates boosted productivity which improves the transport companies’ ability to fight against strong international-scale competition. Its advantages are mostly designed to improve the transport function:

  • Transport times;

  • The volume of products to be managed, according to transport unit or capacity;

  • The study of tangible and intangible flows, and loads inherent to the transport solution;

  • A profitability study as soon as the order has been registered, with all differences calculated;

  • Operational monitoring;

  • Load management;

  • Help with decision-making according to the loads or expected benefits;

  • Reports, to define the strategy based on available data;

  • Being able to inform partners and customers in real-time via the TMS, directly through to their preferred communication tool: phone, tablet, mobile, etc.

The purpose of this TMS software lies in wanting to find the best rates, to offer high service level to the end customer. TMS are tools that help maximize profitability for logistical companies, throughout the entire value chain.

The 3 basic functionalities of TMS

The functionalities offered by TMS software are three-fold.

Scheduling shipments

  • TMS software helps with programming and scheduling shipments.

  • They contribute to scheduling rounds, whilst deciding on the best service provider possible according to their expertise, rates and internal referencing.

  • They provide decision-making data, rendering load optimization easier.

  • They take part in creating the optimal organization chart, to reduce expenses whilst ensuring the best possible quality.

  • They take the products’ priority service needs into consideration.

  • They study solutions.

  • They compensate for operations and border-crossing constraints.

Operational TMS management

  • TMS are essential for complying with real-time traceability standards.

  • They warn management in the case of traceability problems.

  • They contribute to issuing invoice documents or launching .

  • Certain documents are printed automatically and make administrative management easier.

  • They handle multi-currency financial exchanges.

  • They take care of invoice management for freight and all other services.

TMS software is a library filled with standard data

  • Compliance or non-compliance with delivery deadlines;

  • Filling rates for trucks, containers, etc.;

  • CO² emission.

Reports serve as a decision-making tool, that helps constantly improve weak points and consolidate strong ones.

Examples and practical applications

Basic functionalities in TMS software (Transport Management System)

  • Managing all kinds of service providers within the : services offered, rates, etc.

  • Price comparisons and operating tables based on the transporters’ rates.

  • Help with decision-making when it comes to selecting a transporter, based on objective assessment criteria.

  • Optimizing transport through .

  • Issuing RFID labels for tracking packages.

  • Operational monitoring at any given time.

  • Scheduling transport.

  • Managing rounds whilst considering company constraints.

  • Dashboards, etc.

Advantages of TMS

  • Reduced expenses for the transport company.

  • Improving overall service both upstream and downstream, which bolsters trust from operators and customer satisfaction.

TMS in figures

In France, there are about 15 TMS publishers.