TMS software: how to improve the supply chain

Having a reliable software solution for transportation management today is a must; it is a necessity. Although many users underestimate the importance of a TMS for their business. A transportation management system is an irreplaceable tool that, under the pressure of the pandemic crisis, has been able to reduce transportation spending in the long run for many companies.

In the industrial supply chain, automation is vital to success. This is because real-time visibility into all types of operations and synchronization in streamlining transactions is imperative for a company. The only way to maintain this synchronization is to use one of these systems.

The term TMS is becoming more and more common in the supply chain industry as companies turn to new software technology to remain competitive. Technology has revolutionized everything in the industry. Transportation management systems are the next step.

Management Software

A transportation management system is used for planning freight movements, sorting and purchasing across all modes, selecting the perfect route and carrier, and managing invoices and payments. Companies of all sizes are investigating these systems, to learn more about how the technology can save them time and money, communicate with suppliers, and streamline logistics operations.

In other words, a TMS software is a digital system that companies use to manage their freight operations instead of contacting any external, or even internal, partners. A transportation management system typically sits between a company's ERP system and a WMS. It connects these two systems to increase supply chain efficiency.

Most transportation management software has booking, sorting and tracking functions. But also: advanced reporting and dashboards, freight payment and auditing, and other functions that can be added as needed. Transportation management systems come in all shapes and sizes.

Here are some of the benefits companies gain from implementing TMS software

Money and time savings

Business growth is the bottom line

Reallocate manpower to value-added projects

Improve the level of customer satisfaction

Strategic changes

Simplify collaboration with supply chain stakeholders


Supply chain improvement

Saving time and money

A TMS can drastically reduce manual labor and thus the likelihood of human error. Investing in such a system for a transportation department can be a lengthy process, but a company can use a 3PL transportation management system. This will ensure high integration, more visibility and oversight across all types of processes.

Operational efficiency

With a consistent and functional transportation management software, a company can increase its operational efficiency and also use all available resources to optimize every shipment it makes. A TMS makes it easy to find the carriers, lanes and equipment needed, so a company can find and book capacity in advance, documenting each shipment and having complete visibility into all transportation processes: such as costs.

Having an organized, cross-functional space for freight shipments, freight documentation, freight inventory and freight warehousing will increase the quality of a company's throughput. Not only will the TMS help a company keep track of everything, but it also gives access to hidden knowledge.

In the long run, a TMS allows a company to analyze expenses, operational gaps, inventory and many more operational lines. Using this information can help make data-driven decisions to improve cash flow and overall productivity.

Better communication with suppliers

TMS software is a great way to fill gaps in communication with suppliers through:

Better order fulfillment.

Better control of the last steps of the delivery process.

Optimizing order fulfillment and messaging.

Providing transparent and accessible tracking.

Consolidating shipments in the most efficient way.