Glossary

Transport Management System (TMS)

Definition

A Transport Management System (TMS) is a specialized software suite designed to streamline and manage the processes involved in the transportation of goods. It serves as a central hub for planning, executing, and monitoring all transportation activities within a supply chain. The primary function of a TMS is to improve efficiency, reduce transportation costs, and enhance customer service levels.

— sennder Team

FAQ

A TMS improves efficiency by automating and optimizing various transportation processes. It can identify the most efficient routes, consolidate shipments to maximize vehicle capacity, and select the most cost-effective carriers. It also reduces manual tasks and paperwork, saving time and reducing the risk of errors.
A TMS enhances customer service by providing real-time visibility into order status and estimated delivery times, enabling businesses to provide accurate and timely information to their customers. It also helps ensure timely deliveries by optimizing routes and schedules.
Yes, modern TMS solutions can support multi-modal transportation, managing the movement of goods by road, air, sea, or rail within a single system. This allows for greater flexibility and efficiency in logistics operations.
By optimizing routes and consolidating shipments, a TMS can help reduce the number of vehicle miles traveled and the amount of fuel consumed, contributing to lower carbon emissions. Some TMS solutions also provide reporting on carbon emissions, helping businesses track and reduce their environmental impact.
TMS can integrate with IoT devices such as GPS trackers and sensors to provide real-time tracking of vehicles and goods, and to monitor conditions like temperature and humidity in real-time. This can improve visibility, security, and quality control in logistics operations.
Example or usage in road freight logistics

A logistics company uses a TMS to manage its nationwide road freight operations. The system enables the company to plan the most efficient routes based on real-time traffic data, consolidate multiple orders into single shipments to maximize vehicle capacity, and select carriers based on their cost, reliability, and environmental performance. The TMS also provides real-time tracking of vehicles and shipments, enabling the company to provide its customers with accurate and up-to-date information on their orders.

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