What means TMS (Transport Management System)?
What does TMS (Transport Management System) mean?
TMS is a transport route planning and optimization software that allows complete delivery management thanks to its multiple functionalities.
The system is aimed at companies that carry out transport/distribution activities, with the aim of optimizing operational flows in the transport field.
The TMS solution allows automatic assignment of orders to vehicles, establishment of optimal delivery routes, delivery tracking, advanced calculation of transport costs and more. In addition, the system is available online and can be accessed from anywhere, connecting via an internet browser.
The TMS solution has two components:
-
1. Mobile application
Mobile application – provided with functions for receiving activities, GPS navigation, collecting reports and communicating with the head office.
-
2. Web application
Web application – includes functions for creating activities, planning routes, optimizing itineraries and allocating activities.
What are the benefits of a TMS?
The main benefits of a TMS system are:
- Optimization of transport routes
- Optimal resource management
- Real-time communication with drivers
- Efficient use of the car park
- Real-time tracking of activities
What are the functionalities of a TMS system?
The transport management solution covers a whole series of activities, starting from route planning according to certain preset parameters to calculating costs and monitoring all activities.
Among the functionalities of a TMS system are:
- Transport route planning (creation/editing)
- Automatic order processing
- Create/allocate activities and collect/issue reports
- Automatic generation of documents based on templates
- Issue multiple scenarios and suggestions (loading/unloading, routes, etc.)
- Grouping or splitting orders according to needs
- Calculation of costs, CO2 emissions and revenues
- User roles and rights management
- Integration with other software systems (ERP, WMS)
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 the transport of goods.
The main advantages of implementing a TMS are:
- Reducing fuel consumption
- Reducing the number of kilometers traveled
- Significant reduction in delivery costs
- Reducing delivery times
- Elimination of human errors
- Improving communication with drivers
- Increasing service quality and employee satisfaction
- Gaining control over costs and revenues
- Reducing the number of vehicles
- Elimination of dead times and empty runs
- Correct evaluation of the profitability of each order
- Profit growth and company development
Why implement a TMS solution?
- With the help of TMS systems, carriers can deliver more cargo, in a much shorter time and at minimal costs, the applications being easy to configure and use.
- The transport management systems feature GPS monitoring and professional navigation, offering the possibility of real-time monitoring of drivers' activities. At the same time, thanks to the integrated chat, communication with them is improved.
- The automation implied by TMS solutions frees transport operators from the use of a huge volume of papers and Excel, providing a clear record of all operations in just a few clicks.
- The TMS system allows for multiple activities to be performed in a single program, such as planning loading and unloading operations, establishing routes, managing orders and invoices, and creating complex reports and analyses.
- Route allocation can be done based on vehicle characteristics and restrictions. In addition, carriers can include new stopping points on the route, but also establish alternative routes according to certain criteria (time, distance, fees).
- TMS systems offer the possibility to test certain routes and make changes in real time.
- Delivery planning can include picking dates, loading specifications, and driver specifications.
- A TMS system provides transport operators with an overview of their activity performance.
Learn more details about Senior Software applications from a consultant!
Read also:
